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.     

Budgetary Trade-Offs Between Defense,Education and Health Expenditures: The Case of Turkey

The main objective of this paper is to evaluate empirically the existence of a budgetary trade-off between military, education and health expenditures in Turkey for the time period 1925-1998. Development economists, peace and defense economists and political economists have extensively investigated the existence of a trade-off between military, education and health spending since the 1970s. However, the literature review reveals that it is hard to establish a general theory of budgetary trade-off between military, education and health spending and make this applicable for all cases. This is mostly due to economic, social, political, and historical differences among the countries Moreover, it is likely that different research techniques, different time periods analyzed may produce different results. As a result of this, researchers have found a variety of outcomes regarding the trade-off between defense-education and health expenditures. This study presents a brief literature review within the framework of trade-offs between defense-education and health expenditures and also concentrates on theoretical model development. The discussion will center on developing a multi-variable single equation regression model and presenting estimable forms of equations.     

ON THE CHOICE OF MULTI-TASK R&D DEFENSE PROJECTS: A CASE STUDY OF The ISRAELI MISSILE DEFENSE SYSTEM

Investments in R&D constitute a major share of the expenditures of the hi-tech industry since, generally, they enable firms to successfully compete in the rapidly and constantly changing markets for hi-tech products and services. The role of R&D projects is particularly important in the areas of defense and homeland security due to the nature of warfare and the continuous threats posed by arms races and by terror organizations. This study analyzes the choice of the R&D projects designed to counter multiple related military threats. It develops the methodology required to assess whether it is preferable to develop one project to thwart several related threats, or several distinct projects, each of which provides an answer to one specific threat or a partial set of the threats. An analytic solution is provided and assessed for two simple models with two related threats. A solution of the model is then provided for any number of related threats, using a dynamic programming methodology. Finally, we demonstrate the usefulness of our model and methodology to Israel’s missile defense problem; that is, we show how to optimally develop systems aimed at thwarting the multiple threats of short-, medium-, and long-range missiles.     

Defense spending and economic growth: Extended empirical analysis for the European Union

Previous empirical studies on the defense spending-economic growth nexus such as Kollias et al. (2007 Kollias, C., N. Mylonidis, and S. Paleologou. 2007. “A panel data analysis of the nexus between defense spending and growth in the European Union.” Defense and Peace Economics 18 (1): 75–85.[Taylor & Francis Online], [Web of Science ®] , [Google Scholar]), Mylonidis (2008 Mylonidis, N. 2008. “Revisiting the nexus between military spending and growth in the European Union.” Defense and Peace Economics 19 (4): 265–272.[Taylor & Francis Online], [Web of Science ®] , [Google Scholar]), Dunne and Nikolaidou (2012 Dunne, J. P., and E. Nikolaidou. 2012. “Defense spending and economic growth in the EU15.” Defense and Peace Economics 23 (6): 537–548.[Taylor & Francis Online], [Web of Science ®] , [Google Scholar]) analyzed this relationship in the case of the EU15. This study extends the analysis with the inclusion of more EU members and investigates the long run causal ordering between the two variables. Findings reported herein are not uniformed across all EU members. It is also found that end of Cold War has significant negative impact on defense expenditures of former east-European countries.     

Resourcing for defense: Solving the roles and missions puzzle

One of the most important issues facing the post‐Cold War U.S. defense establishment concerns the future allocation of combat tasks and responsibilities among different branches of the armed forces. The challenge is to reduce unnecessary redundancy across roles and missions when resources are highly constrained, without compromising military effectiveness. Defining the policy problem as one of resource allocation rather than operational effectiveness, we develop a methodology for allocating roles and missions. Our methodology focuses at the highest level of force aggregation and uses a mathematical programming model to produce cross‐service cross‐mission trade‐offs that will yield the best total force combat and non‐combat potential within resource consumption constraints.     

U.S. SPACE WEAPONS

Under the administration of President George W. Bush, Pentagon rhetoric has increasingly articulated a more robust vision of space as a future battlefield. This analysis details some of the ongoing spending for research and development programs identified in current U.S. Air Force, Missile Defense Agency (MDA), and Defense Advanced Research and Planning Agency (DARPA) planning and budget documents related to “space control” and “space force projection.” This analysis finds that current support for “space superiority” and “space control” systems remains largely rhetorical—with little actual budgetary support. Unclassified technology development programs included in the six-year Future Years Defense Plan are a decade or more away from deployment. Programs related to offensive counterspace, space-based missile defense interceptors, and space-based strike total slightly less than $300 million in FY 2006 funding. We conclude significantly higher expenditures in research and development would be required to develop and deploy killer micro satellites, space-based missile defense interceptors, and military space planes.     

U.S.–RUSSIAN NUCLEAR COOPERATION AND THE CTBT

Post-Cold War “lab-to-lab” collaborations on unclassified scientific issues between U.S. and Russian nuclear weapons laboratories set the stage for bilateral cooperation in materials control and other nuclear areas. They also became the major element in a cooperative process initiated by a Presidential Decision Directive to ensure Russia's compliance with the Comprehensive Nuclear-Test-Ban Treaty. These collaborations have always been highly favored by leaders of the Russian nuclear weapons complex—the same leaders who oversee Russia's participation in various government-to-government programs. This article reviews these collaborations and examines the possibility that U.S. rebuffs of Russian proposals and the U.S. failure to keep promises of expanded collaboration could contribute to Russia's reluctance in major programs and even lead to a return to nuclear testing by Russia. The author argues that a renewed U.S. commitment to the process should be an immediate goal of the Obama administration and is an essential step in re-engaging Russia to solve the nuclear problems remaining from the Cold War. Steps for doing so are recommended.     

干扰条件下防空兵通信装备系统效能分析

为研究干扰条件下防空兵通信装备系统效能,在ADC模型的基础上构建了ADCF系统效能模型,并结合实例对模型进行了仿真分析.仿真结果显示,该模型能较好反映敌方干扰对通信装备系统效能的影响.提出了干扰条件下提高防空兵通信装备系统效能的措施.     

An Imperfect Jewel: Military Theory and the Military Profession

This article explores a perennial theme in the literature of strategic studies: the relationship between military theory and the military profession. It begins with a conceptual analysis of this relationship. It then investigates what military theorists themselves have had to say about the utility of their craft. It concludes by assessing the actual influence of military theory on selected individuals and institutions. The individuals are George S. Patton, Jr., and Ulysses S. Grant. The institutions are the United States Army and the United States Air Force in the late twentieth century. The fundamental finding is suggested in the title: military theory can indeed be quite useful in the maturation of military commanders and in the development of martial institutions, but it is not always necessary and by no means perfect. It should thus be studied assiduously but used with caution.     

Gorshkov's Gambit

This article is a portrait of Admiral Sergei Gorshkov, commander of the Soviet Navy for almost three decades, from 1956–85. The author, a retired US Navy admiral with a Harvard PhD in Russian studies who served as both defense and naval attaché in Moscow, draws on numerous face-to-face interactions with Gorshkov. He also explores Gorshkov's memoirs that were published recently in Russia but have not appeared in an English translation. The paper is not only a first-hand account of an important historical figure, but also a window into the world of military-to-military diplomacy and intelligence during the Cold War.