The future of European defence policy: An economic perspective

European defence policy has been dominated by politics. This paper shows how economic principles can be used to derive guidelines for the formulation of European defence policy. The inefficiencies of the EU's existing defence arrangements are identified. It is shown that there is scope for efficiency improvements in the EU's Armed Forces and its defence industries.     

The benefits and costs of the UK arms trade

A benefit‐cost framework and the associated evidence is used to evaluate UK arms exports. Two issues are examined in detail. First, trade externalities; and second, a case study of the problems and costs of maintaining the UK submarine industrial base without exports.     

Export controls,market structure and international coordination

We look at the different ways of aggregating the exports of dual use products to give the security perception of exporter countries and their consistency with the relevant export control regimes. Also, we analyze different models of export controls highlighting the role of the perception of security, market structure and competition between exporting firms in determining the existence of multiple equilibria and therefore, the need for coordination between countries in setting export controls.     

The 1958 Anglo-American Mutual Defence Agreement: The Search for Nuclear Interdependence

Written on the 50th anniversary, this article focuses on the negotiations between Britain and the United States which led to the 1958 Mutual Defence Agreement and the beginning of the ‘special nuclear relationship’ which has lasted down to the present day. It is argued that the eventual success of the negotiations had a lot to do with the key roles of Eisenhower and Macmillan but that a transatlantic ‘advocacy coaltion’ of nuclear scientists, defence and intelligence officials also played an important part at the operational level in achieving and subsequently shaping the kind of relationship which developed. Attention is also given to the longer term significance of the agreement, especially in terms of the arguments about its impact on nuclear proliferation.