The economics of defense

This compelling book provides an up-to-date survey of the field of defense economics, the study of defense and peace issues, with the application of economic analysis and methods. The subject embraces both microeconomics and macroeconomics, taking into account such features as growth theory, comparative statistics, game theory and econometrics. A wide range of topics are addressed, including all aspects of the economics of defense, disarmament, conversion and peace. The implications of different organizational forms and their performances are examined, considering the efficient management of defense resources budgets and internal markets in the armed forces. In this groundbreaking volume, Sandler and Hartley synthesize and unify the vast literature on defense economics and peace science.

Author Notes

Todd Sandler is Professor of Economics and Political Science at Iowa State University
Keith Hartley is a Professor of Economics and Director of the Centre for Defence Economics at the University of York

Preface	p. xi
1 Defense economics: an introduction	p. 1
I Alliances, defense demand, and arms races	p. 17
2 The economic theory of alliances	p. 19
3 The demand for military expenditures	p. 52
4 Arms races	p. 73
II Defense inputs, industrial base, and growth	p. 111
5 Procurement: theories, evidence, and policies	p. 113
6 Military manpower	p. 156
7 Defense and the industrial base	p. 177
8 Economic growth, development, and military expenditures	p. 200
III Defense policies, trade, disarmament, and conversion	p. 221
9 Industrial and alliance policies	p. 223
10 The arms trade	p. 242
11 Arms control and disarmament	p. 260
12 Conversion	p. 284
IV New developments and future directions	p. 303
13 Nonconventional conflict: revolutions, guerrilla warfare, and terrorism	p. 305
14 Conclusions and research agenda for the future	p. 336
References	p. 347
Author index	p. 377
Subject index	p. 382

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