MILITARY EXPENDITURE AND GRANGER CAUSALITY: A CRITICAL REVIEW

A large literature has used tests for Granger (1969) non‐causality, GNC, to examine the interaction of military spending with the economy. Such tests answer a specific although quite limited question: can one reject the null hypothesis that one variable does not help predict another? If one can reject, there is said to be Granger causality, GC. Although the limitations of GNC tests are well known, they are often not emphasised in the applied literature and so may be forgotten. This paper considers the econometric and methodological issues involved and illustrates them with data for the US and other countries. There are three main issues. First, the tests may not be informative about the substantive issue, the interaction of military expenditure and the economy, since Granger causality does not correspond to the usual notion of economic causality. To determine the relationship of the two notions of causality requires an identified structural model. Second, the tests are very sensitive to specification. GNC testing is usually done in the context of a vector autoregression, VAR, and the test results are sensitive to the variables and deterministic terms included in the VAR, lag length, sample or observation window used, treatment of integration and cointegration and level of significance. Statistical criteria may not be very informative about these choices. Third, since the parameters are not structural, the test results may not be stable over different time periods or different countries.     

Concise RLT forms of binary programs: A computational study of the quadratic knapsack problem

The reformulation‐linearization technique (RLT) is a methodology for constructing tight linear programming relaxations of mixed discrete problems. A key construct is the multiplication of “product factors” of the discrete variables with problem constraints to form polynomial restrictions, which are subsequently linearized. For special problem forms, the structure of these linearized constraints tends to suggest that certain classes may be more beneficial than others. We examine the usefulness of subsets of constraints for a family of 0–1 quadratic multidimensional knapsack programs and perform extensive computational tests on a classical special case known as the 0–1 quadratic knapsack problem. We consider RLT forms both with and without these inequalities, and their comparisons with linearizations derived from published methods. Interestingly, the computational results depend in part upon the commercial software used. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2010     

Book Reviews

Iain McCallum, Blood Brothers Hiram and Hudson Maxim: Pioneers of Modern Warfare. London: Chatham, 1999. Pp. 224, 33 illus., 2 maps, biblio., index. £20. ISBN 1–86176–096–5.

Eric Ash, Sir Frederick Sykes and the Air Revolution, 1912–1918. London and Portland, OR: Frank Cass, 1999. Pp.xviii + 268, 20 illus., 3 maps, biblio., index. £42.50/$59.50 (cloth), £18.50/$27.50 (paper). ISBN 0–7146–4828–0 and ‐4382–3.

Azar Gat, Fascist and Liberal Visions of War: Fuller, Liddell Hart, Douhet, and other Modernists. Oxford: Clarendon Press, 1998. Ppviii + 334, biblio., index. £45. ISBN 0–19–820715–8.

David B. Woolner (ed.), The Second Quebec Conference Revisited: Waging War, Formulating Peace: Canada, Great Britain, and the United States in 1944–1945. Basingstoke; London: Macmillan Press, 1998. Pp.xiii + 210, index. £32.50. ISBN 0–333–75970–2.

Jeffrey Grey. Up Top: The Royal Australian Navy and Southeast Asian Conflicts 1955–1972. St Leonards NSW: Allen &; Unwin in association with the Australian War Memorial, 1998. Pp.xx + 380, 110 illus., 12 tables, 23 maps &; diagrams, appendices, notes, biblio., index. NP. ISBN 1–86448–290–7.

Susan L Carruthers, The Media at War. Basingstoke: Macmillan, 2000. Pp.321, biblio., index. £14.99 (paper). ISBN 0–333–69143–1, also available in hardback.

Edward J. Marolda and Robert J. Schneller Jr, Shield and Sword: The United States Navy and the Persian Gulf War. Washington DC: Naval Historical Center, 1998. Pp.xxi + 517, 120 illus., 14 maps, biblio., index. NP. ISBN 0–1604–9476–1.

Marvin Pokrant, Desert Shield at Sea: What the Navy Really Did and Desert Storm at Sea: What the Navy Really Did. Both Westport, CT: Greenwood Press, 1999. Pp.xxiii + 265,9 illus., biblio., index. £44.95. ISBN 0–313–31023–8. Pp.xxiv + 329,12 illus., biblio., index. NP. ISBN 0–313–31024–6.

David Kaularich and Ronald C. Kramer, Crimes of the American Nuclear State: At Home and Abroad. Boston: Northeastern University Press, 1999. Pp.xviii + 195, biblio., index. £42.75. ISBN 1–55553–371‐X.

Stanley Hoffmann, World Disorders: Troubled Peace in the Post‐Cold War Era. Lanham, MD: Rowman &; Littlefield, 1998. Pp.viii+279, notes, index. $29.95. ISBN 0–8476–8574–8.

Lawrence Freedman (ed.), Strategic Coercion: Concepts and Cases. Oxford: Oxford‐University Press, 1998. Pp.400, index. £48. ISBN 0–19–829–349–6.

Stephen J. Cimbala, Coercive Military Strategy. College Station, TX: Texas A&;M University Press, 1998. Pp.229, biblio, index; $39.95. ISBN 0–89096–836–5     

Think again – supplying war: reappraising military logistics and its centrality to strategy and war

This article argues that logistics constrains strategic opportunity while itself being heavily circumscribed by strategic and operational planning. With the academic literature all but ignoring the centrality of logistics to strategy and war, this article argues for a reappraisal of the critical role of military logistics, and posits that the study and conduct of war and strategy are incomplete at best or false at worst when they ignore this crucial component of the art of war. The article conceptualises the logistics–strategy nexus in a novel way, explores its contemporary manifestation in an age of uncertainty, and applies it to a detailed case study of UK operations in Iraq and Afghanistan since 2001.     

The limits of covert action: SAS operations during ‘Confrontation’, 1964–66

This article evaluates the performance of the Special Air Service (SAS) during secret cross-border raids conducted as part of Britain’s undeclared war against Indonesia from 1963–1966. The analysis reviews the existing debate on the SAS’ performance during this campaign; it looks more closely at how military effectiveness might be defined; and it then examines, using the SAS’ own operations reports, the nature of their activities and their success or failure. This article concludes that critics of the SAS’ effectiveness during Confrontation are right; but for the wrong reasons. SAS operations did indeed have less effect than orthodox accounts would have it. But the reasons for this lay not in their misuse but in the exigencies of British strategy. This article demonstrates an enduring truth – no matter how ‘special’ a military force might be, tactical excellence cannot compensate reliably for problems in strategy.     

Solving multifacility location problems involving euclidean distances

This paper considers the problem of locating multiple new facilities in order to minimize a total cost function consisting of the sum of weighted Euclidean distances among the new facilities and between the new and existing facilities, the locations of which are known. A new procedure is derived from a set of results pertaining to necessary conditions for a minimum of the objective function. The results from a number of sample problems which have been executed on a programmed version of this algorithm are used to illustrate the effectiveness of the new technique.     

Estimating reliability of components with increasing failure rate using series system data

The maximum likelihood estimator (MLE) for a distribution function with increasing failure rate is derived, based on a collection of series system data. Applications can arise in industries where operating environments make available only such system-level data, due to system configuration or type-II censoring. The estimator can be solved using isotonic regression. For the special case in which systems contain one component, the estimator is equivalent to the restricted maximum likelihood estimator of Marshall and Proschan [9]. The MLE is illustrated using emergency diesel generator failure data from the nuclear industry. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 115–123, 1998     

From rivals to partners: AirSea Battle and the US air force–navy relationship

AirSea Battle (ASB) has generated significant publicity, controversy, and debate among scholars, analysts, commentators, and observers of US defense strategy. However, a research gap exists concerning formal analysis of the impact of the operational concept on the relationship between the US Air Force (USAF) and the US Navy (USN). The impact of the ASB operational concept on the USAF–USN relationship is examined across the issue areas of strategy, budgets, weapons procurement, and training. These four issue areas represent important areas of historical conflict and competition between the Air Force and Navy. The conclusion is that ASB is ushering in a new era of Air Force–Navy partnership that advances the inter-service dynamic from “jointness” toward integration. The emergent USAF–USN partnership therefore represents a significant development in US defense politics and defense strategy.