How should modeling and simulation be used to support defense acquisition?

This paper investigates the potential for modeling and simulation to contribute to new defense system development, by increasing the productivity of traditional R&D in developing system‐specific technology. Building on a previous optimal control model of defense system R&D, it shows that (1) the optimal use of modeling is related in a natural way to that of traditional R&D, and (2) both have similar optimal profiles over time. Simulated results based on limited historical data suggest that optimal use of modeling could increase the rate of growth in system‐specific technology significantly.     

A note on the financial condition of defense contractors

In recent years, there have been several changes in the weapon‐system acquisition market which have the potential to negatively impact the financial condition of defense contractors. This study evaluates the financial health of defense firms vis‐a‐vis nondefense firms using a fiscal distress identification model developed by E.I. Altman. We conclude that the financial condition of defense firms has deteriorated but the deterioration is the same as experienced by nondefense firms.     

Alternative models of Greek defence expenditures

This paper models and estimates Greek defence spending over the 1950–1989 period. It employs the Stone‐Geary welfare function and estimates levels of defence expenditures by the Engle‐Granger two‐step procedure. The Dickey‐Fuller test regression for cointegration is specified in terms of the significance of additional augmentations. The Deaton‐Muellbauer functional form is then employed and an estimating equation for the expenditure share of defence is derived. This specification is compared with the levels equation through a number of non‐nested tests involving model transformation.     

The effect of deployment on first‐ and second‐term re‐enlistment in the US active duty force

Why should deployment affect re‐enlistment? In our model, members enter the military with naïve beliefs about deployment and use actual deployment experience to update their beliefs and revise their expected utility of re‐enlisting. Empirically, re‐enlistment is related to the type and number of deployments, consistent with the learning model. Non‐hostile deployment increases first‐term re‐enlistment but hostile deployment has little effect except for the Army, where the effect is positive. Both types increase second‐term re‐enlistment. Interestingly, first‐term members with dependants tend to respond to deployment like second‐term members. In addition, deployment acts directly to affect re‐enlistment, not indirectly through time to promotion.     

The Political Economy of Legislation on Terrorism

^{1 1}This research was funded in part by a grant from the Lowe Institute of Political Economy. The corresponding author is S. Brock Blomerg. We thank Chris Blomberg and Brianna Loyosa for their excellent research assistance on the project. This paper presents an empirical analysis of what drives congressional legislation on terrorism during the period 1995 to 2010. We utilize and augment current methodology to compile and analyze data on sponsorship and cosponsorship of terrorism related data. Our results on the sources of legislation on terrorism are largely in line with past examinations of the importance of committee membership and leadership, party majority-ship, and other political factors. Further, we find that the most significant and robust drive for legislation on terrorism is the September 11^th attacks. And while the impact of 9/11 affected legislative productivity everywhere, we find that it most significantly affected states surrounding New York and Washington D.C. Our results indicate that the economy may be one factor motivating politicians to legislate on terrorism; however, these results are not robust.     

Territorial contestation and repressive violence in civil war

This study models the structural sources of variation in the use of selective (discriminate) repression within 89 civil wars fought between 1981 and 2005. The severity of repressive violence is modeled as a function of the amount of territory being contested by the insurgents. This idea is operationalized using measures of the location, size, and density of insurgency violence. The analysis finds evidence that the repressive behavior of both governments and rebel groups is linked to conflict geography. Governments violate physical integrity rights more frequently and kill more civilians the greater the overall amount of territory under contestation. Rebels kill more civilians in highly dispersed insurgencies that lack a clear epicenter.     

Performance measurement in military operations: information versus incentives

We explore the impact of strategic assessment efforts on military organizations at war. To do so, we construct a model to explore the impact of a principal’s choice among imperfect performance metrics for a military operation. In doing so, the principal must consider both the incentivizing and informational properties of the metric. We show the conditions under which uncertainty regarding the nature of the agent, as well as uncertainty regarding the operational environment, drives a metric choice that induces pathological behavior from the agent. More specifically, a poor metric choice can create an overly optimistic assessment and end up prolonging the conflict. We illustrate the model’s insights in the cases of World War II and the Vietnam War.     

Optimal replacement of military aircraft: an economic approach

A nonlinear optimization model is developed in this paper to identify the optimal replacement strategy for military aircraft. In the model, the aircraft operating and maintenance (O&M) costs per available year are estimated as a function of age during the aircraft life cycle. After determining the optimal replacement policy, the model is applied to the CF Long-Range Patrol CP-140A Arcturus fleet. A sensitivity analysis is also carried out to assess the impact of some key model parameters on the result.     

Using the Feder-Ram and Military Keynesian Models to Examine the Link Between Defence Spending and Economic Growth in Sri Lanka

This study uses the Feder-Ram model in conjunction with the military Keynesian model to examine the nexus between defence spending and economic growth in Sri Lanka. We find that the Keynesian aggregate demand model is better suited to analyse the link than the Feder-Ram model for the case of Sri Lanka. Based upon our results we expect a higher economic growth rate in Sri Lanka if more public resources are diverted from the defence to civilian sectors of the economy, now that the war between the government and separatist guerrillas has come to an end. However, recent post war events cast doubt upon whether a diversion of sources from military to non-military spending will actually occur. We conclude that the sanguine predictions of our economic analysis are entirely dependent upon the political decisions of the Sri Lankan government for their realization.     

Military Spending and Economic Growth in South Asia: A Panel Data Analysis

Despite the large number and variety of studies addressing the relationship between military spending and economic growth, a consensus regarding the exact nature of any relationship between the two has proven elusive. This study uses a panel co-integration approach to examine the relationship between military spending and economic growth in the five South Asian countries of India, Pakistan, Nepal, Sri Lanka and Bangladesh over the period of 1988–2007. It finds that a 1% increase in military spending increases real GDP by only 0.04%, suggesting that the substantial amount of public expenditure that is currently directed towards military purposes in these countries has a negligible impact upon economic growth.