The independent resource on global security

Peace, Defence and Economic Analysis

Publisher: Palgrave Macmillan
ISBN 0-333-42275-9
450 pp.

The economic analysis of peace and defence and of arms industries and military expenditures is rapidly developing into an important area and topic of study for economists. The International Economic Association debated it first in 1982 and also at its World Congress in 1983. This is the volume of the proceedings of a conference which took the subject further. In part the book covers theoretical, econometric and mathematical models which lay foundations for a better understanding of the dynamics of arms races and threats to peace. But it also deals with the macroeconomic factors—which are the background to defence—with the economic analysis of vital non-economic factors and with the history of the subject in economic thought. Finally, it also presents some views on the analysis of military activity at the level of the firm.


Part I. General perspectives

1. Unilateral national defence organisations: An economic analysis of non-economic structures

Kenneth E. Boulding

2. Peace and war economics in retrospect: Some reflections on the historical background of defence economics

Christian Schmidt

3. Defence spending as a priority

Andrew Brody


Amartya Sen


Part II. Defence and war modelling

4. The uses, values and limitations of game theoretic methods in defence analysis

M. Shubik

5. Conflict, arms races and war: A synthetic approach

Jean Christian Lambelet and Urs Luterbacher

6. Arms races and the outbreak of war: Application of principal-agent relationships and asymmetric information

Dagobert L. Brito and Michael D. Intriligator


Walter Isard

7. Economic considerations in the comparison between assured destruction and assured survival

Martin C. McGuire


Kurt Rothshchild

8. Economic warfare between the superpowers

Murray Wolfson and John P. Farrell


Part III. Macroeconomics in an international political framework

9. Economic change as a cause of international conflict

Bruce Russett

10. Whither modernisation and militarisation, implications for international security and arms control

Edward A. Kolodziej

11. The current warfare/welfare alternative and the evidence from technology

Ulrich Albrecht

12. Military expenditure comparisons

Hans Christian Cars and Jacques Fontanel

13. The economics of military spending: Is the military dollar really different?

G. Adams and D. A. Gold


Christos Passadeos

14. Military-related debt in non-oil developing countries 1972–82

Rita McWilliams Tullberg


Victor L. Urquidi


Part IV. Econometrics and applied microeconomics

15. Military expenditure dynamics and a world model

A. R. Gigengack, H. de Haan and C. J. Jepma

16. Time-series estimates of the microeconomic impact of defence spending in France and the UK

Stephen Martin, Ron P. Smith and Jacques Fontanel


H. de Haan

17. NATO burden-sharing: Rules or reality?

Todd Sandler

18. Defence and employment in the UK and France: A comparative study of the existing results

Jacques Aben and Ron P. Smith

19. Reducing defence expenditure: A public choice analysis and a case study of the UK

Keith Hartley

20. The conversion of military activities: A strategic management of the firm perspective

Pierre Dussauge


Frank Blackaby was Director of SIPRI between 1981–86.