Economic impact and the notion of compensated procurement

The paper consists essentially of two parts. In the first part a linear economic impact model is presented whose structure is based on subcontracting flows. The structural coefficients are defined in terms of flows per area. The model is derived from two identities that are analogous to the income and expenditure identities of national income accounting. The parameters are prime contracts and when one or several of the prime contracts are changed, the model determines the impacts of such changes on the various regions that have been selected. The impacts can be combined with regional multipliers to derive changes in regional income and regional employment. Fragmentary data for this kind of model have been collected on a one-time basis by DOD in 1965 and some results based on the data are presented. The second part of the paper is concerned with normative economics. A scheme is suggested, called compensated procurement, that outlines how the Department of Defense might employ the impact model in a macroeconomic setting. The basic idea is that a stabilization fund be established to finance an array of potential projects which are contracted for to balance sudden shifts in defense demand. Only short-run stabilization is advocated.     

Russia’s strategy for influence through public diplomacy and active measures: the Swedish case

Russia, as many contemporary states, takes public diplomacy seriously. Since the inception of its English language TV network Russia Today in 2005 (now ‘RT’), the Russian government has broadened its operations to include Sputnik news websites in several languages and social media activities. Moscow, however, has also been accused of engaging in covert influence activities – behaviour historically referred to as ‘active measures’ in the Soviet KGB lexicon on political warfare. In this paper, we provide empirical evidence on how Russia since 2014 has moved towards a preference for active measures towards Sweden, a small country in a geopolitically important European region. We analyse the blurring of boundaries between public diplomacy and active measures; document phenomena such as forgeries, disinformation, military threats and agents of influence and define Russian foreign policy strategy. In summary, we conclude that the overarching goal of Russian policy towards Sweden and the wider Baltic Sea is to preserve the geostrategic status quo, which is identified with a security order minimising NATO presence in the region.     

Decomposing inventory routing problems with approximate value functions

We present a time decomposition for inventory routing problems. The methodology is based on valuing inventory with a concave piecewise linear function and then combining solutions to single‐period subproblems using dynamic programming techniques. Computational experiments show that the resulting value function accurately captures the inventory's value, and solving the multiperiod problem as a sequence of single‐period subproblems drastically decreases computational time without sacrificing solution quality. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010