Empirical analysis of the defense interdependence between Japan and the United States

The purpose of this paper is to analyze the defense interdependence between Japan and the United States (US) in the short and long run and to investigate whether Japan is a follower or a free rider of the “US” over the 1975–2009 period. Given that mutual aid between Japan and the US has been maintained, the empirical results suggest that Japanese defense has a stable relationship with US defense. Furthermore, the results reveal that Japan is not a free rider but rather a follower in the period under consideration.     

Determinants of military expenditure and the role of globalisation in a cross-country analysis

Abstract

Anecdotal evidence offers conflicting views on the impact of globalisation on military expenditure. We contribute to the existing literature by investigating the effect of globalisation on military expenditure in 82 countries for the period, 1989–2012. After introducing economic and strategic variables into the model, we utilise the dynamic panel generalised method of moments system to estimate the relationship in the variables. The empirical findings reveal that globalisation reduces both military burden and real military expenditure. The findings are consistent, irrespective of the globalisation indicator adopted. The policy implications of the results are explained.     

How not to pay for the war

As a result of allied subsidy and the influence of sunk costs, the marginal cost of the Gulf War to the US was reduced to negligible size. This result is at variance with the Olson‐Zeckhauser thesis that in an alliance “the small exploit the large.” A game theoretic alternative explanation suggests that the relation between allies resembles the game of Chicken, successfully played by the US. The ability to shift the marginal costs of war in the short term raises questions about the possible underestimation of long term effects.     

The impact of defense and non‐defense public spending on growth in Asia and Latin America∗

For a three‐sector Feder‐Ram framework, we present time‐series, cross‐sectional estimates for two cohorts, consisting of Asian and Latin American countries. The estimates indicate that private investment, and defense and non‐defense public spending are growth promoting for alternative error components representations. For the best error components representation, greater growth enhancement is associated with the two forms of public spending in Asia than in Latin America, while the opposite comparison characterizes private investment. Although defense is growth promoting, an opportunity cost exists insofar as non‐defense spending, financed by defense spending, appears to give a small net boost to growth in Latin America.     

Growth and Fiscal Consequences of Terrorism in Nigeria

Abstract

In spite of government counter-terrorism expenditure and efforts, the incidence of terrorism in Nigeria appears to be rising. This paper examines the growth and fiscal consequences of terrorism in Nigeria by estimating the terrorism–macroeconomy relation using different measures of terror incidence. The results show that terrorism has an economically and statistically significant negative impact on growth; although this impact is considerably small and short-lived, manifesting only after a lag of about three years. Specifically, the cost of terrorism to Nigeria, in terms of lost GDP per annum, is estimated at 0.82%. Moreover, there is evidence that terrorism leads to the reallocation of economic activity away from private investment spending to government spending; that is, terrorism crowds out investment at a higher rate than its potential to crowd in government spending. Lastly, terrorism alters the composition of government expenditure – with the defence component of government expenditure rising vis-a-vis other expenditure items. The results are robust to allowing for dynamic interactions between terrorism and macroeconomic aggregates.     

NATO Territorial Ballistic Missile Defense and its Implications for Arms Control

ABSTRACT

Since 2002, NATO's territorial missile defense has evoked continuous debates between NATO states and the Russian Federation. Thirteen years have passed without reaching a common denominator. This article provides a comprehensive overview of the historical background of the debate and the technical details of the missile defense system, highlighting its shortcomings and the state of its deployment process. It also contrasts the military-technical and political arguments of both sides, before addressing the applicable norms of international law to highlight violations and the effect of this noncompliance on existing arms control measures.     

考虑目标微多普勒频移的反导雷达配置模型

针对采用微多普勒频移识别目标的反导雷达,对其配置问题进行研究,以便更好地发挥其目标识别能力。首先,利用雷达性能参数,计算出要探测某一弹道时的雷达可配置区;其次,分析目标微多普勒频移对目标识别可能性的影响,以雷达覆盖区和高概率识别区的最大化为目标建立雷达的配置模型;最后,通过仿真分析发现通过调节雷达覆盖区与高概率识别区的权重,可以得到针对不同作战需求时的雷达配置方案。     

Computational complexity of finding Pareto efficient outcomes for biobjective lot‐sizing models

In this article, we study a biobjective economic lot‐sizing problem with applications, among others, in green logistics. The first objective aims to minimize the total lot‐sizing costs including production and inventory holding costs, whereas the second one minimizes the maximum production and inventory block expenditure. We derive (almost) tight complexity results for the Pareto efficient outcome problem under nonspeculative lot‐sizing costs. First, we identify nontrivial problem classes for which this problem is polynomially solvable. Second, if we relax any of the parameter assumptions, we show that (except for one case) finding a single Pareto efficient outcome is an ‐hard task in general. Finally, we shed some light on the task of describing the Pareto frontier. © 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 386–402, 2014     

Special Section: Nuclear Stability In South Asia

The question of nuclear stability in South Asia is a subject of both academic and policy significance. It is the only region in the world that has three, contiguous nuclear-armed states: India, the People's Republic of China, and Pakistan. It is also freighted with unresolved border disputes. To compound matters, all three states are now modernizing their nuclear forces and have expressed scant interest in any form of regional arms control. These issues and developments constitute the basis of this special section, which explores the problems and prospects of nuclear crisis stability in the region.