Searching for the Optimal Defence Expenditure: An Answer in the Context of the Greek – Turkish Arms Race

A. S. Andreou, K. E. Parsopoulos, M. N. Vrachatis and George Zombanakis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aims at evaluating the extent to which the defence expenditure of Greece and Cyprus given their arms race against Turkey in the context of the Integrated Defence Doctrine policy constitutes a burden feasible to bear. The evaluation takes place using an Optimal Control solution constrained by a model emphasising on Greek and Cypriot defence expenditure. Various experiments and scenarios have been tested leading to the general conclusion that the defence expenditure in both allied countries seems to be driving their economies beyond capacity limits. This, however, by no means justifies the one sided disarmament policy currently followed by Greece, since the long – term armament programmes pursued by Turkey, the role of which in this arms race has been proven as leading, leave very small room to the Greek and Cypriot sides to reduce their defence expenditures.

Keywords: Optimal Control; Defence Expenditure; Arms Race; Relative Military Security (search for similar items in EconPapers)
JEL-codes: C45 H56 (search for similar items in EconPapers)
Date: 2002-07-14, Revised 2002-08-15
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Published in Financial Engineering, E- Commerce and Supply Chain 1.1(2002): pp. 1-24

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