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Theory And Application To The Us Military

Author

Listed:
  • Oren Setter
  • Asher Tishler

Abstract

An ever-growing share of defence R&D expenditures is being dedicated to the development and fielding of integrative technologies that enable separate individual systems to work in a coordinated and synergistic fashion as a single system. This study explores the optimal defence budget allocation to the development and acquisition of weapon systems and to the development of integrative technologies. We develop a suitable optimization framework, and then use it to derive the optimal budget allocation and analyse its properties. Finally, we use US defence budget data to calibrate the parameters of the model and provide a quantitative measure for the apparent US military supremacy.

Suggested Citation

  • Oren Setter & Asher Tishler, 2007. "Theory And Application To The Us Military," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(2), pages 133-155.
    • Handle: RePEc:taf:defpea:v:18:y:2007:i:2:p:133-155
    DOI: 10.1080/10242690600797273
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