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This Element introduces students, policy-makers, politicians, governments and business-people to this new discipline within economics. It presents the recent history of the subject and its range of coverage. Traditional topics covered include models of arms races, alliances, procurement and contracting, as well as personnel policies, industrial policies and disarmament. Newer areas covered include terrorism and the economics of war and conflict. A non-technical approach is used and the material will be accessible to both economists and general readers.

Since the end of the Cold War, the world has been faced with new regional conflicts, terrorism and threats from the proliferation of weapons of mass destruction and from rogue states. The world remains uncertain, unstable and insecure with continued threats to global peace and security. The world economic crisis has also threatened government spending with defence as a candidate for spending cuts. Choices have to be made about the size of a nation's defence budget, its allocation between nuclear and conventional forces, between equipment and personnel and between air, land and sea forces....