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Optimal growth under military threat

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  • Hasan Ersel

Abstract

National Defense is a public good that requires resources for its production and its availability affects the economic behavior of private agents. A major policy problem of the government is to find an optimal allocation of resources between private use and national defense. It is shown that, in a simple optimal growth framework, a government's solution may not be the one that satisfies the military authority's objective. Attention is drawn to the need of cooperation between these two bodies and to the importance of the transparency of military expenditures in reaching a compromise that satisfies the public.

Suggested Citation

  • Hasan Ersel, 2004. "Optimal growth under military threat," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(2), pages 133-143, April.
    • Handle: RePEc:taf:defpea:v:15:y:2004:i:2:p:133-143
    DOI: 10.1080/1024269032000110513
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    References listed on IDEAS

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    1. Martin S. Chin, 2002. "Modelling Social Infrastructure and Growth," Department of Economics - Working Papers Series 839, The University of Melbourne.
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    Cited by:

    1. Selina Våge & Julia E Storesund & Jarl Giske & T Frede Thingstad, 2014. "Optimal Defense Strategies in an Idealized Microbial Food Web under Trade-Off between Competition and Defense," PLOS ONE, Public Library of Science, vol. 9(7), pages 1-11, July.

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