Defense Economics: An Institutional Perspective

Description

This textbook examines the economic problems of military organizations from an institutional perspective. It discusses the efficiency and effectiveness of military performance, using a capability-based conceptualization. Constitutional, historical and economic considerations complement the analysis. Neither the analysis nor the conclusions depend on any specific armed force, culture, organization, or language. On the contrary, the challenge of defense economics analysis and armed forces management is reduced to a fundamental economic problem, and solutions to this problem are offered.  This book is a must-read for students, scholars and practitioners interested in a better understanding of defense economics.   Preface Contents List of Figures List of Tables Chapter 1: Introduction: The Fundamental Economic Problem of the Military Bibliography Chapter 2: Institutions and Armed Forces 2.1 Contemporary Armed Forces as Planned Economy Systems 2.2 Consequences for Human Behavior 2.2.1 Politicians 2.2.2 Planners 2.2.3 Residents 2.2.4 Interest Groups 2.2.5 Combatants Bibliography Chapter 3: Effectiveness of Military Performance 3.1 Military Conflicts as Objective Selection Environments 3.2 Consequences of the Planned Economy System 3.2.1 Delayed Correction of Forecasting Errors 3.2.2 Reduced Dynamic Adaptability 3.2.3 Limited Factor Substitution Bibliography Chapter 4: Efficiency of Military Performance 4.1 Opportunities and Limitations for Efficiency Gains 4.2 Consequences of the Planned Economy System 4.2.1 Structural Inefficiency 4.2.2 Crowding Out of Investments by Operating Expenses 4.2.3 Undermining of Formal by Informal Institutions Bibliography Chapter 5: Opportunities for Reform 5.1 Limited Reform Capacity of a Planned Economy 5.2 System Reform 5.2.1 Property Rights 5.2.2 Decentralization of Property Rights 5.2.3 Implementation Bibliography Index