The Economics of Defense - Paperback

by Todd Sandler (Author), Keith Hartley (Joint Author)

Defense economics examines both peace and defense issues, using such macroeconomic and microeconomic tools as growth theory, static optimization, dynamic optimization, comparative statics, game theory and econometrics. This book provides an up-to-date survey of the field of defense economics, synthesizing and unifying the vast literature in this area. Many aspects of defense, disarmament, conversion and peace are examined; both demand and supply issues of defense spending are analyzed.

Back Jacket

Defense economics is the study of both defense and peace issues, using the tools of modern economics. It covers a range of issues, including nuclear proliferation, resource disputes, environmental externalities, ethnic conflicts, and terrorism, all of which present grave threats to peace and security. In a post-Cold War world military and political dangers are probably more numerous and more complex than ever before. In response, policy makers and researchers are increasingly applying economic techniques and insights to improve our understanding of the issues. The economics of defense provides a comprehensive evaluation of the literature in an up-to-date, unified survey. The authors apply both microeconomic and macroeconomic methods of analysis, including static optimization, growth theory, dynamic optimization, comparative statics, game theory, and econometrics. The book includes chapters on the study of arms races, alliances and burden sharing, economic warfare, the arms trade, weapon procurement policies, defense and development, defense industries, arms control agreements, disarmament, and conversion. The authors take stock of what has been done in the field to date, and pinpoint areas needing further analysis and empirical work. This is the first book to integrate and synthesize this broad literature. It will be essential reading for students, practitioners, and researchers in the field of defense economics.