Citation

Pugh PG. Defence economics 1993; 4(2): 179-194.

Copyright

(Copyright © 1993, Informa - Taylor and Francis Group)

DOI

10.1080/10430719308404758

PMID

unavailable

Abstract

Escalation in the unit costs of military equipment is now recognised as a rational and cost-effective response to the circumstance of cost being associated with absolute levels of performance but effectiveness deriving from superiority in performance over rivals. Less clear has been why the rate of cost escalation should be so uniform over time and across so wide a range of apparently disparate items. This paper shows the rate of cost of escalation to be the product of a nexus of diverse influences all tending to much the same end. Cost escalation is judged, therefore, to be a robust phenomenon likely to persist unaltered even in the face of major geo-political or economic changes.