Abstract This article argues that the observed elasticity of substitution between military and civilian labour within a defence ministry provides an indication of the likely scope for efficient outsourcing of military services. Military labour can only be employed by government, so outsourcing...

This paper studies the benefit coming from bundling two sequential activities in a context of Public Private Partnerships (PPPs). Differently from previous literature, I introduce a source of asymmetric information in the form of an externality parameter linking the building stage with...

Outsourcing public provision of services tends to lower labor intensity and increase its efficiency. Costs are usually lower, but quality problems can affect services like health care and residential youth care. Consumer choice has stimulated innovation in education, but the picture is ambiguous...

The economic literature on PPPs has generally overlooked agency problems within private consortia. We provide a first contribution in this direction, relying on a simple incomplete contracts framework where a Builder and an Operator set up a Special Purpose Vehicle (SPV) to carry out a contract...

Public private partnerships allows public and local authorities to entrust an conomic operator both with regard to the financing structures and equipment that their design, construction, operation or management of public services, failing to be owners and by paying the operator of milestone...

This paper models the interactions between the defense needs of the USA and Western Europe, which produce several heterogeneous defense goods, and the defense industry market structure. The results show that net defense costs of the USA and Europe are lower when the number of defense firms in...

The Soviet Union was able to develop a large military-industrial complex and become the world’s second superpower despite the small size of its malfunctioning planned economy because defence was given high priority status and special planning, rationing and administrative mechanism were...

In this working paper us propose to carry out an interpretation of the aspects argumentative and economic of the law 002 of the Farc, or law of pays for the war. Our interpret this stratagem like part of the game of strategy politicians by means of which the insurgent group seeks to balance...

This paper examines the potential costs a country faces when it fails to develop domestic arms manufacturing. I examine these costs using the historical example of Canada's decision to not develop domestic naval shipbuilding capacity prior to World War II. Canada's primary naval responsibility...

We use rich historical data on military procurement to estimate the effects of government spending. We exploit regional variation in military build-ups to estimate an "open economy relative multiplier" of approximately 1.5. We develop a framework for interpreting this estimate and relating it to...