This paper analyzes the terrorist threat following 9/11, and explores its implications for defense R&D. First, it reviews the composition of defense R&D since 9/11: big weapon systems still command 30% of defense R&D spending (legacy of the Cold War), vis-a-vis just about 13% for intelligence...

Our paper explores the optimal investment in integrative technologies (such as command and control systems), which are a major part of defense R&D at the beginning of the 21st century. Employing a dynamic optimization framework, we find that under linear development costs, it may be optimal or...

In this paper we develop an empirical model for transnational terrorist activity for a panel consisting of 139 countries over the period 1985-1998. Essentially, we attempt to sketch the profile of the average terrorist attack venue. Our findings suggest that the terrorist attack venue is, on...

Airframe fatigue has emerged as a primary determinant of tactical aircraft service life. To investigate the impact of various operational scenarios on airframe fatigue and aircraft stocks, we develop an econometric model of fatigue and arrest landing accumulation for US Naval aircraft. Model...

In Hirshleifer's (1995) model for unitary actors, combined fighting/production abruptly breaks down when inter-group decisiveness of fighting is above a certain value (above one) or income requirements are not met. Accounting for the collective action problem, this article gives the opposite...

This paper analyzes a national defense economy in which the army reduces the risk of attack and damage. The results show that it is important how countries or people feel about damage to military personnel, citizens and wealth from attack. The feeling determines the optimal levels of arms...

This article displays the importance and richness of Hirshleifer's social composition function in public good applications, particularly those in defense economics. This function indicates how individual contributions to the public good combine to determine the overall level of the good that is...

This paper describes the huge gap in defence R&D expenditure between the United States and Western Europe, considers the causes and consequences of this transatlantic defence R&D gap and analyses some of the controversies that surround it. The paper notes that concerns about the R&D gap are as...