PD Dr. Peter T. Baltes To my wife, my (academic & military) teachers, my family and my friends
Online: * August 2012
Economics and the Economics of Defense I
Labeling the economics of defense as the interface connecting military decisions
/ actions and economics looks like a pretty good stepping stone to gain a better
understanding of this discipline.
Economics as a science emerged during the 18th century because moral philosophers
like Adam Smith looked for an answer to the following question: Economic resources
like food are scarce. Why then is it morally legitimate for person A to eat a slice
of a pizza while other persons are barred from access and perhaps even have to remain
To assess such coordination issues, economics primarily relies on the efficiency-criterion:
A person’s specific act not only contributes to the (approximate) fulfillment of
a rational life-time goal (efficacy). But the corresponding act is also realized
with a minimum of resource input.