By T. Sandler (Editor), Keith Hartley

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Data series on military expenditures and arms transfers must be used with caution as the publishing institutions have only limited resources to deal with the numerous conceptual and practical problems. Keywords arms transfers, conscnptton, costs of wars, data limitations, data sources, deflators, exchange rates, indirect costs, inflation, international comparisons, military aid, military strength, national accounts, opportunity costs, productivity, purchasing power parity, secrecy, social benefits Ch.

D When judged to be trained, equipped and available for military operations. Double-counting has to be considered before aggregations. e 2. 1. Functional versus institutional approaches Aggregation of expenditures belonging to military functions, such as military deterrence, defense and warfighting, is preferable. But government budgets are predominantly organized along bureaucratic lines. These may not coincide with functional purposes. For instance, paramilitary forces may come under the budget of the Ministry of Domestic Affairs, military aid under the budget of Foreign Affairs, and procurement under the budget of special "Ministries of Machinery".

As is the case in many countries? Is disaster relief something military? Is military aid to distant countries helpful fo� the national military purpose? In a number of countries, the armed forces run enterprises, often to produce weapons, but sometimes also to manufacture or sell civilian goods and services. There is no uniform way in which costs and incomes of such activities are budgeted. g. Far Eastern Economic Review ( 1 994), June 9, p. 1 2]. A specific problem is presented by armed opposition groups.

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Handbook of Defense Economics, Vol. 1 by T. Sandler (Editor), Keith Hartley

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