The Econometrics of Military Arms Races

  title={The Econometrics of Military Arms Races},
  author={John P Dunne and R. Percy Smith},
This chapter reviews the econometric issues involved in estimating models of the competitive acquisition of military capability by hostile powers. Econometrics involves the synthesis of theory, data and statistical methods thus in reviewing the econometrics of arms races, we will pay as much attention to theory and data as we do to statistical methods. After discussing the choice of data and the theoretical issues in specification, we then examine four types of model: time-series estimation of… CONTINUE READING