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Defense economics derives from and is embedded in the multi-dimensional array of issues each country must address when providing for its national security. Applying economic concepts and methods, it attempts to evaluate this great diversity of security related questions, and to understand how...
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We study countries choosing armament levels and then whether or not to go to war. We show that if the costs of war are … war is positive (but less than one) in any given period. Wars are between countries with differing armament levels and the … the probability of winning a war becomes more reactive to increased armament, the frequency of wars decreases. Finally, as …
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