Bargaining with nuclear weapons: Thomas Schelling's ‘general’ concept of stability

This article identifies a consistent approach to stability across a wide range of conflict situations at the heart of Thomas Schelling's strategic theory. It finds that there are two main aspects of this ‘general’ concept of stability. The first is the ability to strike a bargain at a mutually acceptable resting place as seen in the Korean War stalemate. The second is the ability to maintain a strategic bargain over the long term as in the stability of the balance of terror. This article finds that crucial assumptions which underpin Schelling's general concept, such as the existence of restraints on the degree of competition and the idea that nuclear weapons assist the bargaining process, hold up better in some cases than in others. Stability consequently seems more possible in a conventional conflict or crisis when nuclear weapons are a background influence than in a war where the nuclear threshold has already been crossed.     

Book reviews

Frank Zimmer, Bismarcks Kampf gegen Kaiser Franz Joseph Konigsgratz und seine Folgen. Graz, Vienna, Cologne: Styria Verlag 1996. Pp.203,49 illus., 1 map. OS 350/DM 49. ISBN 3–222–12377–2.

Saul Zadka, Blood in Zion: How the Jewish Guerrillas drove the British out of Palestine. London and Washington: Brassey's, 1995. Pp.227, chron., illus., index. £19.95. ISBN 1–85753–136–1.

Theodore L. Gatchel, At the Water's Edge: Defending against the Modern Amphibious Assault. Annapolis, MD: Naval Institute Press, 1996. Pp.xvi+217, notes, biblio, index. $36.95. ISBN 1–55750–308–7.

Max G. Manwaring and William J. Olson (eds.) Managing Contemporary Conflict: Pillars of Success. Boulder, CO: Westview Press, 1996. Pp.269, no index. $65 (cloth); $25 (paper). ISBN 0–8133–8969 and 9978–5

Chris Seiple, The US Military/NGO Relationship in Humanitarian Interventions, Carlisle Barracks, PA: The

Richard L. Millett and Michael Gold‐Biss (eds.) Beyond Praetorianism: The Latin American Military in Transition. University of Miami: North/South Center Press; Boulder, CO: Lynne Rienner, 1996. Pp.xv +317, index. $24.95. ISBN 1–5745–000–9.

Rudolph C. Barnes Jr, Military Legitimacy: Might and Right in the New Millennium. London and Portland, OR: Frank Cass, 1996. Pp.199, select biblio., index. £27.50/$39.50, ISBN 0–714–4624–5.     

The real exchange rate Enigma: A safe haven solution from the cold war era

In this paper I shift the focus of real exchange rate analysis from conventional macroeconomic variables, which have failed to explain changes in floating real dollar exchange rates, to military security variables, which show an uncanny ability to explain the pattern of floating real exchange rate changes among NATO‐area floating currencies from early 1973 through the failed Soviet coup of August, 1991.     

Optimal replacement of military aircraft: an economic approach

A nonlinear optimization model is developed in this paper to identify the optimal replacement strategy for military aircraft. In the model, the aircraft operating and maintenance (O&M) costs per available year are estimated as a function of age during the aircraft life cycle. After determining the optimal replacement policy, the model is applied to the CF Long-Range Patrol CP-140A Arcturus fleet. A sensitivity analysis is also carried out to assess the impact of some key model parameters on the result.     

What Goes Up Must Come Down: Military Expenditure and Civil Wars

Abstract

This paper examines the impact of civil war on military expenditure. We employ two measures of military expenditure: the share of military expenditure in general government expenditure and the logarithm of military expenditures. We would reasonably expect a priori that military expenditure as a share of general government expenditure increases during a civil war and that such increases would taper off over the duration of a civil war. We also explore whether the termination of a civil war induces a decline in the share of military expenditure as a share of the general government expenditure in the short-run. We find evidence the of share of military expenditure increases during a civil war and falls in the year succeeding the end of a civil war, and, in particular, if a war ends in a peace treaty. The level of military expenditures, however, rises during civil wars and does not appear to decline in the short-term after the end of a civil war.