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The economics of disarmament

In: Handbook of Defense Economics

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  • Fontanel, Jacques

Abstract

The economics of disarmament is a new discipline. It involves analyses on the economic causes of the arms race, the definitions of disarmament and the economic determinants and military expenditure. Simultaneously, disarmament is considered as an obstacle to economic development, a peace dividend or an investment. The construction of economic models of disarmament produces some controversial results. Questions arise concerning the economic effects of a reduction in military expenditure on growth, employment, inflation, budget deficits, the costs of conversion or the dual use of military products, capital capacity and R&D. Long term disarmament needs a development process and an adequate public policy.

Suggested Citation

  • Fontanel, Jacques, 1995. "The economics of disarmament," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 19, pages 563-590, Elsevier.
    • Handle: RePEc:eee:hdechp:1-19
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