This note refutes criticism raised by Solomon about past tests used to ascertain the concordance between NATO benefits and burdens. In so doing, a case is made for keeping the benefit proxy based on exposed borders. Moreover, a truer sensitivity analysis than that offered by Solomon is suggested.

This survey article deals with defence policy, spending and the industrial base in Canada since the Second World War. In particular, the macroeconomic realities underpinning defence expenditure patterns as well as the unique microeconomic conditions affecting the Canadian defence industrial base...

This note implements the sensitivity analysis suggested by Sandler and re-examines the robustness of the concordance between NATO benefits and burdens.

The choice between balanced and specialized defence forces depends on the technology of defence output (e.g. whether a force scope multiplier is present), the existence of scope and scale economies, the platform customization costs and, of course, the level of defence budgets. Minimum force...

This paper employs both linear and non-linear models to investigate the relationship between national defense spending and economic growth for Taiwan and China. Using data from 1953-2000 on defense spending, GDP, import, export and capital, we find that China's defense spending leads that of...

The US has embarked upon a major transformation of its approach to defence industrial base planning. Although bureaucratic and industrial inertia, as well as budgetary constraints, may delay transformation, its effects will lead to radical changes in the US defence industrial base with new...

When rational choice theory is applied to the study of terrorism, it is important that attention be given to the derived principles of constrained utility maximization. Particularly useful is the Slutsky equation, which rigorously analyzes the quantity response in one activity to a price change...

This paper models the interactions between the defense industry market structure and the defense needs of Israel, the USA and Western Europe, which produce several heterogeneous defense goods. The model specifies that the defense industries of the US and Europe are 'large' while that of Israel...

An examination of past analyses suggests that today's sailors may be less responsive to compensation changes than previous generations. Such a change could make recruiting and retaining high-quality sailors more difficult. However, variation in researchers' decisions over time may simply have...

This paper reviews some of the theoretical and econometric issues involved in estimating growth models that include military spending. While the mainstream growth literature has not found military expenditure to be a significant determinant of growth, much of the defence economics literature has...