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Analyzing the costs of military engagement

Author

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  • Olaf J. de Groot

    (DIW, Berlin)

Abstract

Analyzing governments’ expenditure when it comes to military engagement is a challenging task. As governments are neither transparent nor eager to come forward with the necessary information, researchers make a lot of assumptions that require extensive justification. This article details a range of relevant cost channels and describes the difficulties in estimating their respective sizes. But when worked-up in a careful and deliberate way, it is possible to obtain reasonable estimates of the budgetary effects of military engagements. Following the outlined methodology creates an opportunity to improve openness, which will benefit researchers, policymakers, and the public at large.

Suggested Citation

  • Olaf J. de Groot, 2012. "Analyzing the costs of military engagement," Economics of Peace and Security Journal, EPS Publishing, vol. 7(2), pages 41-49, July.
    • Handle: RePEc:epc:journl:v:7:y:2012:i:2:p:41-49
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    File URL: http://www.epsjournal.org.uk/index.php/EPSJ/article/view/142
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    References listed on IDEAS

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    1. Spengler, Hannes, 2004. "Kompensatorische Lohndifferenziale und dr Wert eines statistischen Lebens in Deutschland," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 22615, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Spengler, Hannes, 2004. "Kompensatorische Lohndifferenziale und der Wert eines statistischen Lebens in Deutschland," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 37281, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    4. Spengler, Hannes, 2009. "Kompensatorische Lohndifferenziale und der Wert eines statistischen Lebens in Deutschland," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 77423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Spengler, Hannes, 2004. "Kompensatorische Lohndifferenziale und der Wert eines statistischen Lebens in Deutschland," Darmstadt Discussion Papers in Economics 133, Darmstadt University of Technology, Department of Law and Economics.
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    Keywords

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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