There is now a large empirical literature on estimating arms races. This paper surveys some of the econometric issues involved in estimating action-reaction models of such races. Starting from the traditional Richardson model, it examines issues of identification, specification, and the role of...

Arms races – enduring rivalries between pairs of hostile powers, which prompt competitive acquisition of military capability – appear to be a pervasive phenomenon. From the past Cold War competition, between the US and the USSR, to present regional antagonisms, such as India and Pakistan,...