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Defence Economics

Silhouette of armored troop carriers against a setting sun

Defence Economics

Defence economics seeks to inform better defence policy through improved resource allocation.

A nation’s defence entails the allocation of scarce resources.

At the macro level, a nation has to decide how much money and how many people to devote to its defence.

Within an armed force, decisions have to be made about the allocation of resources to specific military capabilities.

At the micro level, decisions have to be made about the best mix of personnel, equipment and external support to most cost-effectively produce the sought military capability. 

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