We consider the contribution of reserves to the efficient mobilization of military manpower. Our analysis suggests that offering recruits an option to serve as reservists enhances social welfare if there is a sufficiently strong relationship between recruit performance in the military and their...

Militaries commonly require recruits to pass a test that measures aptitude for military service. In this paper, we show that such tests may also act as a device for screening out low-motivation recruits, even if it is assumed that motivation is not measured by such tests and is not correlated...

The ideal water contract for a heterogeneous population of users is a prioritized right that is fully vested and fully tradable. A set of tradable, prioritized rights contracts will span the same space as the Debreu contingent commodities. Therefore, they lead to a competitive equilibrium that...

In this article, we develop a model of military manpower mobilization. We use the model to evaluate the efficacy of volunteer- and conscription-based manpower systems within a framework of social welfare maximization. We find that neither conscription nor a volunteer approach is likely to be...

In this article, we consider the optimal fiscal strategy of a government interested in maximizing expected social welfare in the face of a potential future security threat. While the common wisdom is that countries facing security threats should seek to bolster their fiscal position in order...

Intuitively, we would expect that an increase in the military preparations of potential enemies imply that the rival perceives an increase in the likelihood of future conflict. In this paper, we present a simple model that suggests that, surprisingly, the relationship is ambiguous. We find that...