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Defense Sector, Armaments-Labor Ratio And National Security

Author

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  • Kazunori Tanigaki

Abstract

This paper analyzes a national defense economy in which the army reduces the risk of attack and damage. The results show that it is important how countries or people feel about damage to military personnel, citizens and wealth from attack. The feeling determines the optimal levels of arms procurement and army personnel. It also affects international trade. It is found that labor (armaments) input into the military sector is not always decreased following an increase of wage (armaments price). The model suggests that conscription affects army expenditure and international trade.

Suggested Citation

  • Kazunori Tanigaki, 2006. "Defense Sector, Armaments-Labor Ratio And National Security," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(1), pages 59-71.
    • Handle: RePEc:taf:defpea:v:17:y:2006:i:1:p:59-71
    DOI: 10.1080/10242690500233692
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    References listed on IDEAS

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    1. Fisher, Anthony C, 1969. "The Cost of the Draft and the Cost of Ending the Draft," American Economic Review, American Economic Association, vol. 59(3), pages 239-254, June.
    2. Rogerson, William P, 1990. "Quality vs. Quantity in Military Procurement," American Economic Review, American Economic Association, vol. 80(1), pages 83-92, March.
    3. Smith, R P, 1989. "Models of Military Expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(4), pages 345-359, Oct.-Dec..
    4. Wong, K-Y., 1988. "Foreign Trade, Military Alliance, And Defence-Burden Sharing," Discussion Papers in Economics at the University of Washington 88-11, Department of Economics at the University of Washington.
    5. Michael Brzoska †, 2004. "The economics of arms imports after the end of the cold war," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(2), pages 111-123, April.
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