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Front cover; Handbook of Defense Economics. Defense in a Globalized World; Copyright page; Introduction to the Series; Dedication; Contents of the Handbook; Contents of Volume 2; Chapter 20. Defense in a Globalized World: An Introduction; Abstract; Keywords; 1. Introduction; 2. Defense economics: Then and now; 3. Our decision on what to include in Volume 2; 4. Organization of the book; 5. Concluding remarks; References; Chapter 21. Economics of Defense in a Globalized World; Abstract; Keywords; 1. Overview; 2. World trends and big picture security themes
3. Defense: A normative problem in economics4. New century salients in defense economics; 5. Tasks for defense economics: Two special and timely topics; 6. Some examples of economic method applied to defense; 7. Conclusions: Future direction of defense economics; References; Chapter 22. Economics of Conflict: An Overview; Abstract; Keywords; 1. Introduction; 2. Technologies of conflict; 3. Representative models of conflict and the determinants of power; 4. Settlement in the shadow of conflict; 5. Why fight?; 6. Trade, insecurity, and conflict; 7. Coalitions and group formation
8. Dynamics and growth9. Conflict management and the state; 10. Concluding remarks; References; Chapter 23. Civil War; Abstract; Keywords; 1. Introduction; 2. Concepts and data; 3. Causes of civil war; 4. Duration; 5. Consequences of civil war; 6. Post-conflict; 7. Policy interventions; 8. Conclusions and research agendas; References; Chapter 24. Political Economy of Peacekeeping; Abstract; Keywords; 1. Introduction; 2. Background; 3. Financial arrangements and burden sharing; 4. Economic assessment of peacekeeping, intervention and policy implications
5. Peacekeeping in theatre and policy implications6. Summary and future directions; References; Chapter 25. Terrorism: A Game-Theoretic Approach; Abstract; Keywords; 1. Introduction; 2. A brief look at the early literature; 3. Counterterrorism: Normal-form representations; 4. Counterterrorism: Extensive-form games; 5. Alternative externalities; 6. Pitfalls of international cooperation; 7. Game theory and never conceding to terrorist demands; 8. Asymmetric information; 9. Concluding remarks; References; Chapter 26. Terrorism: An Empirical Analysis; Abstract; Keywords; 1. Introduction
2. Statistical properties of the terrorist incident types3. Counterterrorism policy: The substitution effect; 4. Terrorism since 9/11; 5. Measuring the economic costs of terrorism; 6. Measuring the economic determinants of terrorism; 7. Conclusions and assessment; References; Chapter 27. The Political Economy of Economic Sanctions; Abstract; Keywords; 1. Introduction; 2. Economic effects of sanctions; 3. The political determinants of sanctions policies in sender states17; 4. The political effects of sanctions on the target country
5. Single-rational actor and game theory approaches to sanctions
The second volume of the Handbook of Defense Economics addresses defense needs, practices, threats, and policies in the modern era of globalization. This new era concerns the enhanced cross-border flows of all kinds (e.g., capital and labor flows, revolutionary rhetoric, guerrillas, and terrorists) including the spillovers of benefits and costs associated with public goods and transnational externalities (i.e., uncompensated interdependencies affecting two or more nations). These ever-increasing flows mean that military armaments and armies are less able to keep out security threats. Thus,