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Allocating the U.S. Department of Defense Budget: Revisiting the ‘Incremental/Fair Share Model’

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  • Hiroyuki Seki

Abstract

This article examines the ‘incremental/fair share model’ that was proposed by Alex Mintz in 1988 concerning the budget allocation of the U.S. Department of Defense. Although Mintz was unable to confirm the correctness of his model, this study demonstrated it to be statistically significant. In the statistical analyses, I used the two-stage least squares method and Durbin’s h-test to better scrutinize the model’s adequacy. Few previous studies have addressed the allocation of the U.S. defence budget; consequently, the incremental/fair-share model should constitute a starting point for further research on the U.S. defence budget allocation.

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  • Hiroyuki Seki, 2019. "Allocating the U.S. Department of Defense Budget: Revisiting the ‘Incremental/Fair Share Model’," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(6), pages 719-732, September.
    • Handle: RePEc:taf:defpea:v:30:y:2019:i:6:p:719-732
    DOI: 10.1080/10242694.2017.1419402
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