Munich Personal RePEc Archive

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

ANDREOU, A. S. and PARSOPOULOS, K. E. and VRACHATIS, M. N. and Zombanakis, George A. (2002): Searching for the Optimal Defence Expenditure: An Answer in the Context of the Greek – Turkish Arms Race. Published in: Financial Engineering, E- Commerce and Supply Chain , Vol. 1, No. 1 (14. September 2002): pp. 1-24.

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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.

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