This paper analyses public policy choices in the security economy from an economic perspective. It discusses the role of public goods for national and global security and identifies the importance of the first- and second-order indirect effects of insecurity on economic activity, which include...

This article examines the transformation aspects of Strategy 2020 with particular emphasis on the budget allocation options available to move the Canadian Forces towards an RMA capable force structure. The results of the research indicate that a significant budget increase above the expected...

This paper constructs a macroeconomic model of North-South interaction where the flow of narcotics from the South to the North is restricted. The economic effects are akin to quantitative restrictions in trade policy. Two alternative policy scenarios will be considered. One involves reducing the...

The economic theory of defense has traditionally described public safety as achieved through investments that deter adversaries. Deterrence is, however, ineffective and pre-emptive defense is required when a population of intended victims confronts supreme-value suicide terror. A moral dilemma...

Security measures are said to increase the price of terrorism. This price has not been hitherto defined in an economically meaningful way. This paper provides a precise definition by treating the terrorists' resource endowment as a parcel of contingent claims to political influence with a price...

This paper analyzes the effects on UN member states' contribution incentives of an assessment system employed by the United Nations for the financing of its peacekeeping operations. We argue that formal responsibilities placed on a member state by an assessment system increase the damage the...

This paper models transnational terrorism as a three-way strategic interaction involving a government that faces armed opposition at home, which may spill over in the form of acts of terrorism by the state's opponents against the government's external sponsor. The external sponsor also utilises...

The causal relationship between defence expenditures and external debt is investigated by applying a multivariate model. Our estimation results indicate that defence expenditures and external debt for Turkey are cointegrated. To test for Granger causality in the presence of cointegration between...

This paper investigates an important but neglected issue regarding the economic role of defence spending on employment in Taiwan. The study herein adopts official time series data of yearly defence spending, employment in the private sector, GDP, average monthly salary from 1966 to 2002, and the...