The structure of the defense industry and the security needs of the country: a differentiated products model
This paper models the interactions between the defense needs of the USA and Western Europe, which produce several heterogeneous defense goods, and the defense industry market structure. The results show that net defense costs of the USA and Europe are lower when the number of defense firms in each arms-producing country is small and when the world prices of the defense goods are high. The model predicts that the increase in world prices will crowd-out countries in the developing world from the market for modern weapon systems and may force them to develop and use 'cheap and dirty' weapon systems.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 15 (2004)
Issue (Month): 5 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/GDPE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/GDPE20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Levine, Paul L & Sen, Somnath & Smith, Ron P, 1993. "The Economics of the International Arms Trade," CEPR Discussion Papers 770, C.E.P.R. Discussion Papers.
- McAfee, R. Preston & McMillan, John, 1989. "Government procurement and international trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 291-308, May.
- Orlando I. Balboa & Andrew F. Daughety & Jennifer F. Reinganum, 2001.
"Market Structure and the Demand for Free Trade,"
Vanderbilt University Department of Economics Working Papers
0112, Vanderbilt University Department of Economics, revised Dec 2002.
- Smith, R P, 1980. "The Demand for Military Expenditure," Economic Journal, Royal Economic Society, vol. 90(363), pages 811-20, December.
- Maria del Carmen Garcia-Alonso & Keith Hartley, 2000.
"Export controls, market structure and international coordination,"
Defence and Peace Economics,
Taylor & Francis Journals, vol. 11(3), pages 481-503.
- María del Carmen García-Alonso & Keith Hartley, 1999. "Export Controls, Market Structure and International Coordination," Studies in Economics 9908, School of Economics, University of Kent.
- Paul Levine & Ron Smith, 2000. "Arms Export Controls and Proliferation," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 885-895, December.
- Andreas Blume & Asher Tishler, 2000. "Security Needs and the Performance of the Defense Industry," CIG Working Papers FS IV 00-04, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Anderton, Charles H., 1995. "Economics of arms trade," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 18, pages 523-561 Elsevier.
- Levine, Paul & Smith, Ron, 1995. "The Arms Trade and Arms Control," Economic Journal, Royal Economic Society, vol. 105(429), pages 471-84, March.
- S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
When requesting a correction, please mention this item's handle: RePEc:taf:defpea:v:15:y:2004:i:5:p:397-419. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.