A New Explanation of Arms Races in the Third World: A Differential Game Model
AbstractThis paper examines the stability of arms races in the Third World countries and assumes that the utility function is separable between the consumption and the weapon stocks. We find that the military expenditures and the weapon stocks will exhibit stability and overshooting takes place for the optimal control models. Moreover, we prove that the differential game model has an unstable equilibrium, a result opposite of Deger and Sen (1984).
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Bibliographic InfoArticle provided by College of Business, Feng Chia University, Taiwan in its journal Journal of Economics and Management.
Volume (Year): 3 (2007)
Issue (Month): 2 (July)
arms race; differential game model;
Find related papers by JEL classification:
- H5 - Public Economics - - National Government Expenditures and Related Policies
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- Chang, Wen-ya & Tsai, Hsueh-fang & Lai, Ching-chong, 2002. "Anticipated foreign military threat, arms accumulation, and the current account in a small open economy," Journal of International Money and Finance, Elsevier, vol. 21(7), pages 1035-1052, December.
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