Abbreviated Contents. Introduction (K. Hartley, T. Sandler). Defense economics and international security. (M.C. McGuire). World military expenditures. (M. Brzoska). The demand for military expenditure. (R. Smith). Military alliances: Theory and empirics. (J.C. Murdoch). Arms races and proliferation. (D.L. Brito, M.D. Intriligator). Theorizing about conflict. (J. Hirshleifer). Insurrections. (H.I. Grossman). Terrorism: Theory and applications (W. Enders, T. Sandler). Defense expenditure and economic growth (R. Ram). Military expenditure and developing countries (S. Deger, S. Sen). Incentive models of the defense procurement process (W.P. Rogerson). The economics of military manpower (J.T. Warner, B.J. Asch). The defense industrial base (J.P. Dunne). Economics of defense R&D (F.R. Lichtenberg). Industrial policies in the defense sector (K. Hartley). Regional impact of defense expenditure (D. Braddon). Economics of arms trade (C.H. Anderton). Economics of disarmament (J. Fontanel).