The demilitarization of public security in Panama

The Author, a former Vice‐President and Minister of Government and Justice in Panama, describes the demilitarization process in his country since 1989. A historical summary traces militarization up to the fall of General Noriega and his Panamanian Defense Forces. The factors and stages in demilitarizing the latter back to a civilian police force are described together with the personnel, financial and educational policies implemented. A conclusion argues that better pay and greater professionalization will improve the police's self‐image even more.     

An Integro-Differential Approach To Terrorism Dynamics

This article introduces integro-differential equations as a new technique to study terrorism dynamics. An integro-differential equation is a mathematical expression that contains derivatives of the required function and its integral transforms. The technique is applied to two different dynamic models in terrorism: terrorism and tourism, and terrorist innovations. In the first model the number of tourists that appears in an integral term and also in a derivative term is impacted by the number of terrorists. In the second model the integro-differential equation for terrorist innovations relates them to terrorist attacks. The article shows how to solve, analyze, interpret, and deal with integro-differential equations. Integro-differential equations shed light on aspects of the models ignored when other techniques are used. This is particularly important for the evaluation of current counterterrorist policies, as well as to the formulation of new ones.     

Counterterrorism And Its Impact On Terror Support And Recruitment: Accounting For Backlash

This article presents a dynamic model in which counterterrorism policies have the potential to generate positive public support for terrorism via a backlash that may fuel terror recruitment. For an optimizing government aiming at maximizing security, this phenomenon produces a natural bound on proactive counterterror policy that is related to the dynamic path of conflict. Moreover, terror is a persistent phenomenon that requires patience on the part of the target government for optimal counterterror policies to be realized. Finally, the potential for backlash yields insights into the need for target governments to fight an information war to change public opinion regarding its own policies and the ultimate effect of terror attacks.     

A non‐linear defence‐growth nexus? evidence from the US economy

The defense‐growth nexus is investigated empirically using time series data for the US and allowing the effect of defense spending on growth to be non‐linear. Using recently developed econometric methods involving threshold regressions, evidence of a level‐dependent effect of military expenditure on GDP growth is found: the positive externality effect of defense spending prevails for relatively lower levels of defense spending (with respect to the history of defense spending in the US) and reverts its influence for higher levels.     

Partial equilibrium in risk‐based production decisions

Characteristically, a small subset of operational problems admit risk neutrality when contingent claims methodology were used in their analysis. That is, for the majority of manufacturing and production problems, operating cash flows are not directly linked to prices of traded assets. However, to the extent that correlations can be estimated, the methodology's applicability to a broader set of operational problems is supported. Our article addresses this issue with the objective of extending the use of contingent claims techniques to a larger set of operational problems. In broad terms, this objective entails a partial equilibrium approach to the problem of valuing uncertain cash flows. To this end, we assume risk aversion and cast our approach within Merton's intertemporal capital asset pricing model. In this context, we formulate a “generic” production valuation model that is framed as an exercise in stochastic optimal control. The model is versatile in its characterization and can easily be adapted to accommodate a wide‐ranging set of risk‐based operational problems where the underlying sources of uncertainty are not traded. To obtain results, the model is recast as a stochastic dynamic program to be solved numerically. The article addresses a number of fundamental issues in the analysis risk based decision problems in operations. First, in the approach provided, decisions are analyzed under a properly defined risk structure. Second, the process of analysis leads to suitably adjusted probability distributions through which, appropriately discounted expectations are derived. Third, through consolidating existing concepts into a standard and adaptable framework, we extend the applicability of contingent claims methodology to a broader set of operational problems. The approach is advantageous as it obviates the need for exogenously specifying utility functions or discount rates.© 2011 Wiley Periodicals, Inc. Naval Research Logistics, 2011     

Currency Warfare and Just War: The Ethics of Targeting Currencies in War

ABSTRACT

Is Currency Warfare defined as, the use of monetary or military force directed against an enemy’s monetary power as part of a military campaign, a just way to fight a war? This article explores the ethics of waging currency warfare against the Just War Tradition’s principles of jus in bello (just conduct in war) and its criteria of discrimination and proportionality. The central argument is that currency warfare is inherently indiscriminate but may be proportionate when policy makers consider the nature of the threat confronted and the targeted currency's level of internationalization, that is, to what degree it is used in foreign transactions or used as a foreign currency reserve. I evaluate this argument against historical cases during the Second World War (1939–1945), the Gulf War (1990–1991), subsequent operations against Saddam Hussein in the early 1990s, and the ongoing campaign against ISIS.     

The Persistent Deficit of Militia Officers in the Swiss Armed Forces: An Opportunity Cost Explanation

The Swiss Armed Forces are suffering from a structural deficit of militia officers despite good pay and a general supportive attitude in the population. Whereas, prior studies have focused on motivation to explain understaffing in armed forces, we offer an alternative approach based on opportunity cost. We model decision alternatives both within and outside a military organization, taking private sector employment as the reference point. We then monetize opportunity costs of leisure, fringe benefits, and private sector income not compensated. Our results suggest that in terms of opportunity cost, service as a militia officer is the least attractive option, an effect that we believe explains the persistent staff deficit. Implications of these findings for the literature and recruitment policy are discussed.