The Basic Economics of Arms Reduction

PEPS Vol. 6. No. 3. Summer 2000 Arrow: Economics of Arms Reduction

Kenneth J. Arrow
Stanford University

[In this paper, Kenneth Arrow provides a general framework for analysis by economists of the forces lying behind the deescalation and escalation of military expenditures. On the basis of his long experience and leadership in the development of economic theory, he addresses the question: what are the ways suggested by such theory for estimating the economic effects of a major reduction of current arms expenditure, particularly with reference to the United States? (eds.)]