Suchergebnisse

Defence policy is of continuing interest and concern to all nations. There are armed conflicts and new threats. Difficult choices cannot be avoided. This book has three aims. First, to identify the typical questions raised by economists when studying defence policy. Second, to show how simple economic analysis can be used to answer these questions and contribute to our understanding of defence issues. Third, to provide a critical evaluation of defence policy.

1. Economics and defence policy : an overview -- 2. How do economists analyse defence? -- 3. The case for defence -- 4. Defence budgets -- 5. The determinants of defence expenditure -- 6. Economics, politics and public choice analysis -- 7. Equipment procurement policy -- 8. NATO and equipment standardisation -- 9. The European Union : defence markets and industries -- 10. The European defence technological and industrial base -- 11. Evaluating international collaborative projects -- 12. The UK defence industrial base -- 13. Personnel policy -- 14. Economics of military outsourcing -- 15. Economics of the new security environment : terrorism, conflict, disarmament and peace -- 16. Conclusion.

The future European defense firm will be radically different, being determined by future threats, novel technology, and yet to come European defense policy. The immediate threat arises from the war in Ukraine, but longer-term European defense policy based on the Strategic Compass will provide the framework for the future European defense firm. Past developments offer some indication of the future and it is predicted that the defense firm has a future and will survive. The past trend of smaller numbers of larger defense firms will continue with firms being even more technologically-intensive—reflecting Augustine weapons systems, which are characterized by continuously rising unit costs and smaller volumes. There will be more mergers between European defense firms and more joint European projects developing and producing combat air and naval systems, tanks, and cyber systems.

Augustine weapons systems are presented as a new class of economic good. Their distinguishing characteristics are identified in the form of advanced technology, inter-generational cost escalation and small quantities. A distinction is made between cost increases between generations of weapons and falling unit costs within a generation of equipment. The impact of Augustine weapons on learning curves is assessed and the article concludes with an evaluation of Augustine systems for the future defense industrial base.