A model of the international arms market∗

Sales of arms are a significant component of international trade and raise a range of pressing policy issues. After a short review of the market, this paper provides a formal model of the trade which allows for competing forward‐looking suppliers whose welfare depends on both the economic benefits from the sales and the security repercussions of recipient behaviour. The recipient's behaviour depends on its military capability, a function of the stock of arms it has acquired. We first examine a myopic recipient, whose behaviour depends on current stocks, then a forward looking recipient for whom questions of the time‐consistency and the credibility of supplier threats to embargo or promises to resupply become crucial. Finally we examine the impact of supplier cooperation of the sort currently being discussed in the UN Security Council.     

Securing a border under asymmetric information

We study a stochastic interdiction model of Morton et al. IIE Transactions, 39 (2007):3–14 that locates radiation sensors at border crossings to detect and prevent the smuggling of nuclear material. In this model, an interdictor places sensors at customs checkpoints to minimize a potential smuggler's maximum probability of crossing a border undetected. We focus on a model variant in which the interdictor has different, and likely more accurate, perceptions of the system's parameters than the smuggler does. We introduce a model that is tighter and uses fewer constraints than that of Morton et al. We also develop a class of valid inequalities along with a corresponding separation procedure that can be used within a cutting‐plane approach to reduce computational effort. Computational results demonstrate the effectiveness of our approach.Copyright © 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 91–100, 2014     

Book reviews

Export or Die: Britain's Defence Trade with Iran and Iraq. by Davina Miller, London: Cassell, 1996, ISBN 0-304-33852-4 (hbk), £40.00, 04-33853-2 (pbk), £11.99.

The Storm Passed By: Ireland and the Battle of the Atlantic, 1940-1941. by Trevor Allen, Dublin: Irish Academic Press, 1996, ISBN 0-7165-2616-6, (hbk) £17.50.

Arms Control Toward the 21st Century. by Jeffrey A. Larsen and Greqory J. Rattray (eds). Boulder: Lynne Rienner, 1996.

Asia-Pacific Security, Less Uncertainty, New Opportunities. Edited by Gary Klintworth. Melbourne: Addison Wesley Longman, 1996, ISBN 0-582-80321-7, £24.99.

Masters of War, Military Dissent and Politics in the Vietnam Era. by Robert Buzzanco, Cambridge: Cambridge University Press, 1996, ISBN 0-521-48046-9 (hbk), £29.95

Controlling the Arms Trade: the West Versus the Rest. By Paul Cornish, London: Bowerdean Publishing Co., 1996, ISBN 0-906097-44-4 (pbk), £9.99.

Secret Agencies: US Intelligence in a Hostile World. by Loch K. Johnson, London: Yale University Press, 1997, ISBN 0-300-06611-2 (hbk), £22.50.     

Exact algorithms and bounds for the dynamic assignment interdiction problem

We study a multi‐stage dynamic assignment interdiction (DAI) game in which two agents, a user and an attacker, compete in the underlying bipartite assignment graph. The user wishes to assign a set of tasks at the minimum cost, and the attacker seeks to interdict a subset of arcs to maximize the user's objective. The user assigns exactly one task per stage, and the assignment costs and interdiction impacts vary across stages. Before any stage commences in the game, the attacker can interdict arcs subject to a cardinality constraint. An interdicted arc can still be used by the user, but at an increased assignment cost. The goal is to find an optimal sequence of assignments, coupled with the attacker's optimal interdiction strategy. We prove that this problem is strongly NP‐hard, even when the attacker can interdict only one arc. We propose an exact exponential‐state dynamic‐programming algorithm for this problem as well as lower and upper bounds on the optimal objective function value. Our bounds are based on classical interdiction and robust optimization models, and on variations of the DAI game. We examine the efficiency of our algorithms and the quality of our bounds on a set of randomly generated instances. © 2017 Wiley Periodicals, Inc. Naval Research Logistics 64: 373–387, 2017     

A set-processing algorithm for scheduling staff on 4-day or 3-day work weeks

This paper presents an efficient algorithm for scheduling a single-category work force on 4-day or 3-day work weeks. Employees work 4 or 3 days each week, have A out of every B weekends off, and work no more than 5 consecutive days in a work stretch on 4-day work weeks and no more than 4 days in a work stretch on 3-day work weeks. Such conditions often prevail in 7-day-a-week organizations such as hospitals, manufacturing plants, and retail stores. We determine the minimum number of workers required to satisfy the scheduling constraints under any pattern of daily requirements. Then we present the algorithm for assigning days off for each worker, thereby determining the work schedules. We show that the algorithm, by construction, will necessarily satisfy the scheduling constraints. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 839–853, 1998     

Equipment replacement under technological change

For infinite-horizon replacement economy problems it is common practice to truncate the problem at some finite horizon. We develop bounds on the error due to such a truncation. These bounds differ from previous results in that they include both revenues and costs. Bounds are illustrated through a numerical example from a real case in vehicle replacement. © 1994 John Wiley & Sons, Inc.     

On excess-, current-, and total-life distributions of phase-type renewal processes

Consider a renewal process whose interrenewal-time distribution is phase type with representation (α, T). We show that the (time-dependent) excess-life distribution is phase type with representation (α′, T), where α′ is an appropriately modified initial probability vector. Using this result, we derive the (time-dependent) distributions for the current life and the total life of the phase-type renewal process. They in turn enable us to obtain the equilibrium distributions for the three random variables. These results simplify the computation of the respective distribution functions and consequently enhance the potential use of renewal theory in stochastic modeling—particularly in inventory, queueing, and reliability applications. © 1992 John Wiley & Sons, Inc.     

FDs and Military Reform

Abstract

Ron Smith looks at procurement procedures within a European context, taking account of the problems currently facing defence industries and aduocates the institution of a European Defence Union, to be closely monitored by a joint finance Ministry to prevent overspending and monopoly.     

MODELS OF MILITARY EXPENDITURE AND GROWTH: A CRITICAL REVIEW

This paper reviews some of the theoretical and econometric issues involved in estimating growth models that include military spending. While the mainstream growth literature has not found military expenditure to be a significant determinant of growth, much of the defence economics literature has found significant effects. The paper argues that this is largely the product of the particular specification, the Feder–Ram model, that has been used in the defence economics literature but not in the mainstream literature. The paper critically evaluates this model, detailing its problems and limitations and suggests that it should be avoided. It also critically evaluates two alternative theoretical approaches, the Augmented Solow and the Barro models, suggesting that they provide a more promising avenue for future research. It concludes with some general comments about modelling the links between military expenditure and growth.