This study proposes a strategic explanation for the USA's continued provision of military aid to host states with problems of terrorism, despite its poor empirical record. Using a game theoretic model, I demonstrate that US military aid creates a moral hazard problem. If host states are provided...

The purpose of this paper is to examine the effects of military aid and arms transfers on Militarized Interstate Dispute (MID). The “democratic peace� literature has found empirical evidence for the claim that democracies rarely, if ever, engage each other in militarized disputes....