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Reducing Defence Expenditure: A Public Choice Analysis and a Case Study of the UK

In: Peace, Defence and Economic Analysis

Author

Listed:
  • Keith Hartley

    (University of York)

Abstract

Public choice theory is used to explain the behaviour of agents in the defence sector. Public choice embraces the economics of politics, bureaucracies and interest groups. Consideration is given to a government wishing to reduce the level of defence spending or to change its composition (for example, ‘mix’ of nuclear and conventional forces). How are the armed forces, the Ministry of Defence and weapon firms likely to respond to defence cuts? Identification of the groups likely to lose from disarmament and of the arguments they will use to protect themselves are essential for explaining behaviour in the military-industrial complex. The predictions of public choice theory are outlined and the framework is applied to the UK. Defence reviews are taken as examples of spending cuts and it is shown how agents in the political market have reacted and adjusted. The results of some limited empirical tests are presented. These include estimates of the effects of defence reviews on employment; whether defence spending is different from other forms of government and private expenditure; and the impact of the governing party on military budgets. It is recognised that the analytical and empirical work is still in its infancy.

Suggested Citation

  • Keith Hartley, 1987. "Reducing Defence Expenditure: A Public Choice Analysis and a Case Study of the UK," International Economic Association Series, in: Christian Schmidt & Frank Blackaby (ed.), Peace, Defence and Economic Analysis, chapter 19, pages 399-423, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-18898-7_19
    DOI: 10.1007/978-1-349-18898-7_19
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    Cited by:

    1. Fanny Coulomb & Jacques Fontanel, 2003. "Disarmament: A century of economic thought," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(3), pages 193-208.
    2. Eloranta, Jari, 2004. "WARFARE AND WELFARE? Understanding 19th and 20th Century Central Government Spending," The Warwick Economics Research Paper Series (TWERPS) 699, University of Warwick, Department of Economics.

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