Citation

Smith RP, Dunne JP, Nikolaidou E. Def. Peace Econ. 2000; 11(1): 31-43.

Copyright

(Copyright © 2000, Informa - Taylor and Francis Group)

DOI

10.1080/10430710008404937

PMID

unavailable

Abstract

There is now a large empirical literature on estimating arms races. This paper surveys some of the econometric issues involved in estimating action-reaction models of such races. Starting from the traditional Richardson model, it examines issues of identification, specification, and the role of expectations and structural stability. This is done both for the case where the variables are stationary and where they may be I(1) and cointegrated.