The demand for defense in East Asia: Modeling security alternatives∗

An interactive economic model of military spending is proposed. It is quantified on the basis of cross section data for East Asia. Projections of military spending to the end of the decade suggest that the growth of military spending in the region will decline slightly in the current decade. East Asian military spending can, however, be greatly influenced by the path of Chinese and US military efforts. An expansion of military spending by China could cause neighboring countries to greatly increase their military expenditures.     

TERRORISM AND DETERRENCE POLICY WITH TRANSNATIONAL SUPPORT 1

This study provides an explanation of terrorism by examining interactions between the terrorist group with a minority as a potential pool of recruits and the government supported by a majority. A hawkish deterrence policy makes it more risky for terrorists to launch attacks, but heightens the anti‐government feeling of the terrorist group. In addition, the payoff for the government depends not only on the payoff loss associated with the level of terrorism, but also on the political payoff from the action itself of adopting a hawk policy due to its politicians’ vested interests. We first show that whether the deterrence policy should be ‘hawk to ‘dove is closely dependent on the relationships among the risk associated with terrorism, the anti‐government feeling of the terrorist group, and the political payoff for the government. This study then introduces transnational support enhancing the capability of a terrorist group to intensify its activity and shows that the emergence of transnational support may cause the government to reform its deterrence policy from ‘dove’ toward ‘hawk,’ with terrorism intensified in the society.     

Minimizing Public Sector Corruption: The Economics of Crime,Identity Economics,and Money Laundering

Abstract

This paper offers a simple strategic framework to help governments identify various policy mechanisms to minimize public sector corruption. The paper offers a formal model that blends the economics of crime with identity economics and money laundering. It presents a partial equilibrium framework that focuses on a representative public official engaged in a mix of legal and illegal effort. The model introduces various levers a government might use to impact the costs and benefits of illegal effort. The ultimate goal is to help turn volatile vicious cycles of political instability, into steady virtuous cycles of stability, growth, and sustainable development.     

Facing ‘people's war’: Moltke the elder and Germany's military options after 1871

Prof. Dr Werner Hahlweg (ed.), Carl von Clausewitz: Vom Kriege. Neunzehnte Auflage. Bonn: Duemmler, 1980. Pp. 1406; DM. 98.00.*

Tony Ashworth, Trench Warfare 1914–1918. The Live and Let Live System. London: The Macmillan Press, 1980. Pp. 226; £15.

Stephen Roskill, Admiral of the Fleet: Earl Beatty. London: Collins, 1980. Pp. 430; £12.95.

R.J. Overy, The Air War 1939–1945. London: Europa Publications, 1980. Pp. 250; £12.50.

Martin Binkin and Irene Kynakopoulos, Youth or Experience? Manning the Modern Military. Washington, D.C.: The Brookings Institution, 1980. Pp. 84; NP.

Amos Perlmutter and Valerie Bennett (eds), The Political Influence of the Military. New Haven and London: Yale University Press, 1980. Pp. 508; £22.50; £6.90 (paperback).

Edward M. Spiers, The Army and Society 1815–1914. Themes in British Social History. London: Longman, 1980. Pp. 318; £9.95, £5.75 (paperback).

Richard K. Ashley, The Political Economy of War and Peace: The Sino‐Soviet‐American Triangle and the Modern Security Problematique. London: Frances Pinter, 1980. Pp. 384; £15.     

Duality in constrained multi‐facility location models

We consider the ??_p‐norm multi‐facility minisum location problem with linear and distance constraints, and develop the Lagrangian dual formulation for this problem. The model that we consider represents the most general location model in which the dual formulation is not found in the literature. We find that, because of its linear objective function and less number of variables, the Lagrangian dual is more useful. Additionally, the dual formulation eliminates the differentiability problem in the primal formulation. We also provide the Lagrangian dual formulation of the multi‐facility minisum location problem with the ??_pb‐norm. Finally, we provide a numerical example for solving the Lagrangian dual formulation and obtaining the optimum facility locations from the solution of the dual formulation. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 410–421, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10010     

Rare‐event component importance for the consecutive‐k system

Various indices of component importance with respect to system reliability have been proposed. The most popular one is the Birnbaum importance. In particular, a special case called uniform Birnbaum importance in which all components have the same reliability p has been widely studied for the consecutive‐k system. Since it is not easy to compare uniform Birnbaum importance, the literature has looked into the case p = ½, p → 1, or p ≥ ½. In this paper, we look into the case p → 0 to complete the spectrum of examining Birnbaum importance over the whole range of p. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 159–166, 2002; DOI 10.1002/nav.10001     

Pricing bridges to cross a river

We consider a pricing problem in directed, uncapacitated networks. Tariffs must be defined by an operator, the leader, for a subset of m arcs, the tariff arcs. Costs of all other arcs in the network are assumed to be given. There are n clients, the followers, and after the tariffs have been determined, the clients route their demands independent of each other on paths with minimal total cost. The problem is to find tariffs that maximize the operator's revenue. Motivated by applications in telecommunication networks, we consider a restricted version of this problem, assuming that each client utilizes at most one of the operator's tariff arcs. The problem is equivalent to pricing bridges that clients can use in order to cross a river. We prove that this problem is APX‐hard. Moreover, we analyze the effect of uniform pricing, proving that it yields both an m approximation and a (1 + lnD)‐approximation. Here, D is upper bounded by the total demand of all clients. In addition, we consider the problem under the additional restriction that the operator must not reject any of the clients. We prove that this problem does not admit approximation algorithms with any reasonable performance guarantee, unless P = NP, and we prove the existence of an n‐approximation algorithm. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Book Reviews

National Security Concepts of States: New Zealand. By Kennedy Graham. Taylor & Francis, London (1989), ISBN 0-8448-1614-0, £27.00

Power and Prestige in the British Army. By R.G. L. von Zugbach. Gower, Aldershot (1988), ISBN 0-566-05561-9, £22.50

The American Civil War and the Origins of Modern Warfare—Ideas, Organization, and Field Command. By Edward Hagerman. Indiana University Press, Bloomington, IN (1988), ISBN 0-253-30546-2, $37.50 (£23.29)

British Seapower and Procurement between the Wars: a Reappraisal of Rearmament. By G. A. H. Gordon. Macmillan, London (1988), ISBN 0-333-42332-1. £29.50

Armies in Low-intensity Conflict: a Comparative Analysis. Edited by David A. Charters and Maurice Tugwell. Brassey's Defence Publishers, London (1989), ISBN 0-08-036253-2, £25.00 ($45.00); Deadly Paradigms: the Failure of U.S. Counterinsurgency Policy. By Michael Shafer, Leicester University Press, Leicester (1988), ISBN 0-7185-1311-8, £28.00

British Defence Policy Striking the Right Balance. By J. Baylis. Macmillan, London (1989), ISBN 0-333-49133-5, £29.50 or £9.99