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International Conflict and Military Expenditures

Author

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  • Carlos Seiglie

    (Department of Economics Rutgers University, Newark)

Abstract

This article analyzes the two-stage problem a country faces in first choosing the optimal amount of arms to acquire and then deciding whether it can improve upon the allocation that emerges after the first stage by engaging in a military conflict. A model is introduced based on the concept of economic externality to generate conflict situations in the first stage. Then comparative static results are derived by varying the parameters of this model, for example, the rate of technological progress in the military sector and the rate of economic growth, and examining whether the conflict situation improves or worsens as the social welfare of the nations change accordingly. Uncertainty is then introduced and the results are analyzed. Finally, the last part explores the conditions under which the conflict situations presented in the first stage actually lead to the outbreak of war.

Suggested Citation

  • Carlos Seiglie, 1988. "International Conflict and Military Expenditures," Journal of Conflict Resolution, Peace Science Society (International), vol. 32(1), pages 141-161, March.
    • Handle: RePEc:sae:jocore:v:32:y:1988:i:1:p:141-161
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    Citations

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    Cited by:

    1. Carlos Seiglie, 1996. "The Optimal Size of the Military in a Post-Castro Cuba," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 6.
    2. Carlos Seiglie, 1999. "Altruism, Foreign Aid and Humanitarian Military Intervention," Conflict Management and Peace Science, Peace Science Society (International), vol. 17(2), pages 207-223, September.
    3. Polachek Solomon W., 1999. "Conflict and Trade: An Economics Approach to Political International Interactions," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 5(2), pages 1-32, April.
    4. John Robst & Solomon Polachek & Yuan-Ching Chang, 2007. "Geographic Proximity, Trade, and International Conflict/Cooperation," Conflict Management and Peace Science, Peace Science Society (International), vol. 24(1), pages 1-24, February.
    5. Michael D. McGinnis, 1991. "Richardson, Rationality, and Restrictive Models of Arms Races," Journal of Conflict Resolution, Peace Science Society (International), vol. 35(3), pages 443-473, September.
    6. Carlos Seiglie, 1996. "Exploring Potential Arms Races," Economics and Politics, Wiley Blackwell, vol. 8(3), pages 231-240, November.
    7. Carlos Seiglie, 2016. "Openness of the economy, terms of trade, and arms," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 748-759, January.
    8. Carlos Seiglie, 1997. "The Political Economy of Trade Sanctions: The Case of Cuba," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 7.

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