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.

Using simple economic methods while accounting for political and institutional factors, this book puts forward a political economy viewpoint of NATO's current status and its future prospects. A host of NATO policy concerns are addressed including the optimal membership for the alliance, its role in peacekeeping missions worldwide, the appropriate methods for deterring terrorism, and proper procurement practices for the next generation of weapons. Additional topics concern defense burden sharing, arms trade, NATO's institutional structure, and NATO's role vis-a-vis other international...

Using simple economic methods while accounting for political and institutional factors, this book puts forward a political economy viewpoint of NATO's current status and its future prospects. A host of NATO policy concerns are addressed including the optimal membership for the alliance, its role in peacekeeping missions worldwide, the appropriate methods for deterring terrorism, and proper procurement practices for the next generation of weapons. Additional topics concern defense burden sharing, arms trade, NATO's institutional structure, and NATO's role vis-a-vis other international...