CHARLES H. ANDERTON Professor of Economics and Professor of Ethics and Society
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The Economics of Defense Contracting: Incentives and Performance
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Issues in Defense Economics Volume Author/Editor: Roland N. McKean, editor Volume Publisher: NBER Volume ISBN: 0-87014-490-1 Volume URL: http://www.nber.org/books/mcke67-1 Publication Date: 1967 Chapter Title: The Economics of Defense Contracting: Incentives and Performance Chapter Author: Oliver E. Williamson Chapter URL: http://www.nber.org/chapters/c5165 Chapter pages in book: (p. 217 - 278) The Economics of Defense Contracting.' Incentives and Performance OLIVER E. WILLIAMSON UNIVERSITY OF PENNSYLVANIA My purpose in this paper is to examine current practices and trends in defense contracting with a view to establishing what factors are re- sponsible for the performance results obtained and how improved per- formance might be secured. In particular, I will emphasize the incen- tives that are experienced by defense contractors and government con- tracting agencies in negotiating and executing defense contracts. My analysis of these relations leads me to conclude that neither the manipula- tion of profit incentives .nor the monitoring of contract progress can be expected, in any dependable sense, to yield significant improvements in contract performance as long as the specification of the task remains unchanged. From a contractual point of view at least, the "systems approach" to weapons procurement which has prevailed since 1953 1 appearsto be distinctly suboptimal. Whether this is true when viewed more generally will not be a principal concern of mine here, although this issue will be considered at least tangentially in my concluding re- marks. -
Military Expenditures and Economic Growth in Turkey
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Bilkent University Institutional Repository MILITARY EXPENDITURES AND ECONOMIC GROWTH IN TURKEY The Institute of Economics and Social Sciences of Bilkent University by ÖMÜR CANDAR In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in THE DEPARTMENT OF MANAGEMENT BİLKENT UNIVERSITY ANKARA July 2003 I certify that I have read this thesis and that in my opinion it is fully adequate in scope and in quality, as a thesis for the degree of Master of Business Administration. Asst. Prof. Süheyla Özyıldırım I certify that I have read this thesis and that in my opinion it is fully adequate in scope and in quality, as a thesis for the degree of Master of Business Administration. Assoc. Prof. Jülide Yıldırım Öcal I certify that I have read this thesis and that in my opinion it is fully adequate in scope and in quality, as a thesis for the degree of Master of Business Administration. Asst. Prof. Levent Akdeniz Approval of the Institute of Economics and Social Sciences Prof. Dr. Kürşat Aydoğan ii ABSTRACT MILITARY EXPENDITURES AND ECONOMIC GROWTH IN TURKEY by Ömür Candar Supervisor: Asst. Prof. Süheyla Özyıldırım Department of Management July 2003 This study estimates the impact of military expenditures on economic growth in Turkey over the period of 1950-2001 by employing a cointegration analysis developed by Engle and Granger (1987). The model integrates some of the commonly used variables in defence economics models into a simple growth specification and allows the influences of the defence spending on economic growth to be revealed empirically. -
Excerpt from the Proceedings of the Eighteenth Annual Acquisition Research Symposium
SYM-AM-21-074 Excerpt from the Proceedings of the Eighteenth Annual Acquisition Research Symposium How to Measure Value From Defence Spending? The Malaysian Case Study May 11–13, 2021 Published: May 10, 2021 Approved for public release; distribution is unlimited. Prepared for the Naval Postgraduate School, Monterey, CA 93943. Disclaimer: The views represented in this report are those of the author and do not reflect the official policy position of the Navy, the Department of Defense, or the federal government. Acquisition Research Program Graduate School of Defense Management Naval Postgraduate School The research presented in this report was supported by the Acquisition Research Program of the Graduate School of Defense Management at the Naval Postgraduate School. To request defense acquisition research, to become a research sponsor, or to print additional copies of reports, please contact any of the staff listed on the Acquisition Research Program website (www.acquisitionresearch.net). Acquisition Research Program Graduate School of Defense Management Naval Postgraduate School How to Measure Value From Defence Spending? The Malaysian Case Study Kogila Balakrishnan—is the Director for Client and Business Development (East Asia) at WMG, University of Warwick; Adjunct Professor at the Malaysian National Defence University; and the Former Under Secretary of the Department for Defence Industry, Ministry of Defence, Malaysia. He is the author of Technology Offsets in International Defence Procurement (Routledge, 2018). [[email protected]] Abstract More than ever, nations and their citizens demand clear evidence as to the benefits of defence spending and any subsequent value created. The opportunity cost of defence expenditure against other sectors is constantly queried, and the question of how to measure value remains highly contentious. -
From Peace Through Free Trade to Interventionism for the Peace Fanny Coulomb, Alain Alcouffe
From peace through free trade to interventionism for the peace Fanny Coulomb, Alain Alcouffe To cite this version: Fanny Coulomb, Alain Alcouffe. From peace through free trade to interventionism for the peace: The development of J.M. Keynes’ thought from the First to the Second World War. 21st Annual ESHET Conference - Rationality in Economics, The European Society for the History of Economic Thought (ESHET), May 2017, Antwerp, Belgium. hal-02051622 HAL Id: hal-02051622 https://hal.archives-ouvertes.fr/hal-02051622 Submitted on 27 Feb 2019 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. Preliminary Draft FROM PEACE THROUGH FREE TRADE TO INTERVENTIONISM FOR THE PEACE : THE DEVELOPMENT OF J.M. KEYNES’ THOUGHT FROM THE FIRST TO THE SECOND WORLD WAR Alain Alcouffe* et Fanny Coulomb** The link between Keynes and the economy of war is rather paradoxical. On the one hand Keynes played a significant role in his country's war effort during the two world conflicts and recognized the stimulus on growth induced by European rearmament, on the other hand, his inclination towards different dimensions of pacifism manifested itself on many occasions in his life, as in the conclusion of the General Theory, which ends with hope that the envisaged reforms of capitalism will lead to a world without war. -
George Washington University National Security Economics
National Security Economics PPOL 6085, MON 250, Thursdays 18:10-20:45 Course Description: This course applies economic reasoning and methods to the study of defense and national security issues. The first half of the course examines resource management issues using the tools of microeconomics and econometrics. Without resources the Department of Defense could not buy weapons or deploy soldiers, the Department of Homeland Security could not defend our borders, the Intelligence Community could not operate its spy programs, and the Department of State would be without staff for US embassies. The management of resources, including how choices are made over which plans and programs to fund, is where national security policies are made real. Issues that will be examined in this portion of the course include: the resource allocation processes in the Departments of Defense, State, and Homeland Security and in the intelligence community; military force planning and analysis; and the acquisition processes for major weapon systems. The second half of the course will use the tools of economics to examine national security issues like the origins of international conflict, the relationship between military expenditures and growth, military alliances, arms races, and terrorism. Emphasis will be placed on understanding the incentives and constraints under which agents act, the costs and benefits of actions, and how these forces shape the security environment and choices that are made. Throughout the course, discussions with senior officials and visits to related organizations will be used to connect important concepts to application and practice in national security decision-making processes. Students completing the course will gain an in depth knowledge of national security issues as understood through the lens of economics, how major national security resource and management related decisions are made and can be analyzed, and the tools and skills needed for participating in national security issues. -
Defence Economic Outlook 2020 Per Olsson, Alma Dahl and Tobias Junerfält
Defence Economic Outlook 2020 Per Olsson, Alma Dahl and Tobias Junerfält Tobias and Dahl Alma Olsson, Per 2020 Outlook Economic Defence Defence Economic Outlook 2020 An Assessment of the Global Power Balance 2010-2030 Per Olsson, Alma Dahl and Tobias Junerfält FOI-R--5048--SE December 2020 Per Olsson, Alma Dahl and Tobias Junerfält Defence Economic Outlook 2020 An Assessment of the Global Power Balance 2010-2030 FOI-R--5048--SE Title Defence Economic Outlook 2020 – An Assessment of the Global Power Balance 2010-2030 Titel Försvarsekonomisk utblick 2020 – En bedömning av den glo- bala maktbalansen 2010-2030 Rapportnr/Report no FOI-R--5048--SE Månad/Month December Utgivningsår/Year 2020 Antal sidor/Pages 86 ISSN 1650-1942 Customer/Kund Ministry of Defence/Försvarsdepartementet Forskningsområde Försvarsekonomi FoT-område Inget FoT-område Projektnr/Project no A112007 Godkänd av/Approved by Malek Finn Khan Ansvarig avdelning Försvarsanalys Bild/Cover: FOI, Per Olsson via Mapchart Detta verk är skyddat enligt lagen (1960:729) om upphovsrätt till litterära och konstnärliga verk, vilket bl.a. innebär att citering är tillåten i enlighet med vad som anges i 22 § i nämnd lag. För att använda verket på ett sätt som inte medges direkt av svensk lag krävs särskild över- enskommelse. This work is protected by the Swedish Act on Copyright in Literary and Artistic Works (1960:729). Citation is permitted in accordance with article 22 in said act. Any form of use that goes beyond what is permitted by Swedish copyright law, requires the written permission of FOI. 2 (86) FOI-R--5048--SE Summary The global military and economic power balance has changed significantly during the past decade. -
Economics and National Security: the Dangers of Overcommitment
Chapter 10 Economics and National Security: The Dangers of Overcommitment David P.H. Denoon† s the global economy races ahead, more and more demands for U.S. security services are surfacing throughout the world. With this rapidly evolving sce- Anario comes a pressing need for the United States to study the situation care- fully and develop a comprehensive strategy in this arena. How best to proceed, from an economist’s point of view, is explored in this chapter. The crux of the problem is the growing connection between the global economy and security policy, including defense plans. The fact that such a connection exists should come as no surprise, for national policy saw these entities as connected during the Cold War. During that conflict, containment strategy sought to bottle up the So- viet bloc and employed a strong defense effort to support it. In tandem, U.S. policy also sought sustained economic growth across the entire Western alliance system, both to achieve prosperity and to build strategic strength for containment. In the cur- rent era of globalization, policies for security and economics must still be blended, but in ways different from those of the past. The United States has an interest in fos- tering worldwide economic growth as one way to help promote peace. It also needs an active security policy to address the turmoil and dangers that have bubbled up in the wake of the Cold War. A strong U.S. defense posture will be needed. It should be guided by economic thinking not only in using scarce resources wisely but also in being selective about military involvement and in prodding allies to contribute more to common defense burdens. -
Abstract Key Words 1.1 Fundamental Definitions of the Branch of Defense
Introduction to Defence and Security Economics KRČ, M. Notion of Defense Economics. In HOLCNER, V. et al. National Defense Economics, Selected Issues. 1. vyd. Brno : Univerzita obrany, 2006. s. 11-30. ISBN 80-7231-125-5. Abstract This chapter summarizes definitions of the branch of science of national defense economics postulated by different defense economists representing a variety of nations and economic schools. Folowing parts of this chapter outline research areas of this branch of science with particular attention paid to the German notion of Military Economics and the Czech defense economics school as it developed under the Marxist paradigma, including fundamental changes in the Czech defense-economic thinking after the Velvet Revolution. Key Words Allocation, Defense Economics, Defense Resources, Military Economics, Paradigma, Research Area. 1.1 Fundamental Definitions of the Branch of Defense Economics There is a consensus among defense economics experts in understanding defense economy to be an individual branch of study. According to economists of defense - as e.g. American experts Hitch and Mc Kean – the problems of national defense are economical issues. Ch. Hitch and R. McKean (1960) see the main objective of defense economists’ efforts in assisting the decision-making bodies, their advisers and generally all concerned citizens by presenting how the economic analysis can be helpful when selecting the appropriate (efficient and economical) political procedures and actions. The aspect of economic-efficient allocation and exploitation of resources1 appears as one of the most important aspects of military problems. Here it is necessary to mention that these problems have been described in the essay The Theory of Games and Economical Behavior published in the USA in the year 1944. -
Ruhr Economic Papers
RUHR ECONOMIC PAPERS Alfredo R. Paloyo Colin Vance Matthias Vorell The Regional Economic Eff ects of Military Base Realignments and Closures in Germany Ruhr Graduate School ECON in Economics #181 Imprint Ruhr Economic Papers Published by Ruhr-Universität Bochum (RUB), Department of Economics Universitätsstr. 150, 44801 Bochum, Germany Technische Universität Dortmund, Department of Economic and Social Sciences Vogelpothsweg 87, 44227 Dortmund, Germany Universität Duisburg-Essen, Department of Economics Universitätsstr. 12, 45117 Essen, Germany Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) Hohenzollernstr. 1-3, 45128 Essen, Germany Editors Prof. Dr. Thomas K. Bauer RUB, Department of Economics, Empirical Economics Phone: +49 (0) 234/3 22 83 41, e-mail: [email protected] Prof. Dr. Wolfgang Leininger Technische Universität Dortmund, Department of Economic and Social Sciences Economics – Microeconomics Phone: +49 (0) 231/7 55-3297, email: [email protected] Prof. Dr. Volker Clausen University of Duisburg-Essen, Department of Economics International Economics Phone: +49 (0) 201/1 83-3655, e-mail: [email protected] Prof. Dr. Christoph M. Schmidt RWI, Phone: +49 (0) 201/81 49-227, e-mail: [email protected] Editorial Offi ce Joachim Schmidt RWI, Phone: +49 (0) 201/81 49-292, e-mail: [email protected] Ruhr Economic Papers #181 Responsible Editor: Christoph M. Schmidt All rights reserved. Bochum, Dortmund, Duisburg, Essen, Germany, 2010 ISSN 1864-4872 (online) – ISBN 978-3-86788-203-3 The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors’ own opinions and do not necessarily refl ect those of the editors. -
AFRICAN FUTURES 2030 | FREE TRADE, PEACE and PROSPERITY European Union Institute for Security Studies (EUISS)
CHAILLOT PAPER / PAPER CHAILLOT 164 AFRICAN FUTURES 2030 AFRICAN FUTURES 2030 AFRICAN Free trade, peace and prosperity Edited by Giovanni Faleg | FREE TRADE, PEACE AND PROSPERITY PEACE TRADE, FREE With contributions from Paul M. Bisca, Edward K. Brown, Enrico Calandro, Jakkie Cilliers, Mesfin Gebremichael, Joachim Isacsson, Fergus Kell, Olivier Lavinal, Katariina Mustasilta, Luigi Narbone, Carlo Palleschi, Carlo Papa, Patryk Pawlak, Clara Portela, Melanie Robinson, Nicolò Sartori, Fabrizio Tassinari, Bernardo Venturi, Alex Vines and Sean Woolfrey CHAILLOT PAPER / 164 February 2021 European Union Institute for Security Studies (EUISS) 100, avenue de Suffren 75015 Paris http://www.iss.europa.eu Director: Gustav Lindstrom © EU Institute for Security Studies, 2021. Reproduction is authorised, provided the source is acknowledged, save where otherwise stated. The views expressed in this publication are solely those of the author(s) and do not necessarily reflect the views of the European Union. print ISBN 978-92-9198-983-6 online ISBN 978-92-9198-982-9 CATALOGUE NUMBER QN-AA-20-008-EN-C CATALOGUE NUMBER QN-AA-20-008-EN-N ISSN 1017-7566 ISSN 1683-4917 DOI 10.2815/750 DOI 10.2815/458263 Published by the EU Institute for Security Studies and printed in Belgium by Bietlot. Luxembourg: Publications Office of the European Union, 2021. Cover image credit: Bella The Brave/unsplash AFRICAN FUTURES 2030 Free trade, peace and prosperity Edited by Giovanni Faleg With contributions from Paul M. Bisca, Edward K. Brown, Enrico Calandro, Jakkie Cilliers, Mesfin -
Budget Restraint and Military Expenditures in NATO Countries: a Review of the Literature
Budget Restraint and Military Expenditures in NATO Countries: A Review of the Literature Prepared By: Professor Dane Rowlands, The Norman Paterson School of International Affairs Carleton University 1125 Colonel By Drive Ottawa, Ontario Canada, K1S 5B6 [email protected] Contractor's Document Number: 2015-01629; 00BD (Costing methodology Development) CSA: Binyam Solomon The scientific or technical validity of this Contract Report is entirely the responsibility of the Contractor and the contents do not necessarily have the approval or endorsement of the Department of National Defence of Canada. Contract Report DRDC-RDDC-2015-C236 October 2015 © Her Majesty the Queen in Right of Canada, as represented by the Minister of National Defence, 2015 © Sa Majesté la Reine (en droit du Canada), telle que représentée par le ministre de la Défense nationale, 2015 The Norman Paterson School of International Affairs Carleton University Budget Restraint and Military Expenditures in NATO Countries: A Review of the Literature Dane Rowlands Working Paper No. 04, October 2015 NPSIA WORKING PAPER SERIES PAPER NPSIA WORKING 5306 River Building | 1125 Colonel By Drive | Ottawa, Ontario | K1S 5B6 | 613-520-6655 | [email protected] Budget Restraint and Military Expenditures in NATO Countries: A Review of the Literature Prepared by: Professor Dane Rowlands, The Norman Paterson School of International Affairs Carleton University 1125 Colonel By Drive Ottawa, Ontario Canada, K1S 5B6 [email protected] Acknowledgements: I would like to thank, without implicating in any errors, Mr. Decky Kipuka Kabongi for excellent research assistance on this project, Dr. Binyam Solomon for guidance and comments, and the participants in the NATO Science and Technology SAS‐113 4th Meeting workshop in Ottawa, October 14‐15, 2015 for discussion. -
Conflict and Peace Economics
CONFLICT AND PEACE ECONOMICS ECONOMIA DE CONFLITO E PAZ Charles H. ANDERTON1 Jurgen BRAUER2 ABSTRACT: We present an overview of the field of conflict economics. We begin by explaining important distinctions between standard textbook economics and conflict economics regarding assumptions, subject matter, and interrelations between economics and conflict. We then provide summaries of selected economic theories and empirical evidence that together help reveal important aspects of conflict – and peace – through an economics lens. Among the topics covered in the theoretical and empirical overview are why violence is sometimes chosen over peaceful approaches to address intergroup disputes, why it is “rational” for political leaders to sometimes mass kill civilians (and what can be done to prevent this), how social norms of committing harm against outgroups can propagate (or be stopped), why it can be difficult to develop laws and institutions to promote stable peace, and how third-party efforts to promote peace can sometimes make things worse. Lastly, we provide samples of data resources, working paper archives and journals, and readings consisting of major textbooks, handbooks, and edited books in the field of conflict economics. KEYWORDS: Exchange economy. Appropriation economy. Conflict economics. Peace economics. Rational choice model. Game theory. Network economics. 1 College of the Holy Cross, Worcester – MA – USA. Professor of Economics and Distinguished and Professor of Ethics and Society. [email protected]. 2 Augusta University,