The economics of disarmament is a new discipline. It involves analyses on the economic causes of the arms race, the definitions of disarmament and the economic determinants and military expenditure. Simultaneously, disarmament is considered as an obstacle to economic development, a peace...

The end of the Cold War has increased the relative importance of economic causes and consequences of arms transfers. Unfortunately, there is surprisingly little theoretical and empirical development of the economics of arms trade, making it a sub-field of defense economics ripe for foundational...

This chapter examines the current state of knowledge regarding the economic impact of defense expenditure at the level of the regional economy from a global perspective. Appropriate theoretical and analytical approaches are identified and selected case studies reviewed. The regional...

Voluntary military alliances, such as NATO, are often criticized for failing to exploit the opportunities for equipment standardization and free trade. However, nationalism means that governments adopt a variety of industrial policies for purchasing defense equipment, leading to departures from...

This chapter examines a number of aspects of defense R&D, including: mechanisms — design competitions, and independent R&D subsidies — used by the US government to encourage firms to invest their own funds in defense R&D; theory and evidence concerning both the private and social benefits of,...

This chapter provides a survey of research on the defense industrial base (DIB) focusing on the advanced industrial capitalist economies. It starts by looking at the problems of definition and measurement and how these have been dealt with in practice. This is followed by an overview of the...

The USA and other countries spend a significant portion of their defense budgets on personnel. Effective management of military forces requires an understanding of the economics of military manpower. Over the past three decades economists have produced a substantial body of research about the...

Economic theorists have devoted considerable attention to analyzing models of closely related incentive contracting problems that arise in the study of public procurement, private procurement, regulation, the theory of the firm, the theory of organizations, and managerial compensation. The...

Military expenditure in developing countries raises complex questions regarding growth, development, security and governance. This chapter provides an analytical survey of the effects and causes of defense spending in developing economies. Using stylized facts, theoretical models and empirical...

This chapter reviews the empirical research on the relation between defense spending and economic growth. A broad flavor of the approaches adopted by different scholars is provided through a list of selected studies on the topic since 1973 and an outline of the variations over Benoit's original...