A PANEL DATA ANALYSIS OF THE NEXUS BETWEEN DEFENCE SPENDING AND GROWTH IN THE EUROPEAN UNION: A COMMENT |
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Authors: | Dimitris Hatzinikolaou |
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Affiliation: | 1. Department of Economics , University of Ioannina , Ioannina, Greece dhatzini@cc.uoi.gr |
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Abstract: | AbstractThis paper explains and assesses the UK experience with determining prices and profitability for non-competitive defence contracts. Three periods are considered, namely pre-1968, the 1968 Profit Formula Agreement and the changes introduced in 2014. Two cases of ‘excessive’ profits were major determinants of the 1968 Profit Formula Agreement; but continued dissatisfaction with the 1968 Agreement led to changes in 2014. The historical overview of UK experience provides a basis for understanding current UK policy and offers insights for other countries facing similar policy challenges. A critique is presented of UK policy on single source pricing and profitability. |
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Keywords: | Pricing single source pricing profits non-competitive contracts excessive profits 1968 Profit Agreement Review Board Single Source Regulations Office (SSRO) |
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