Citation

Linden M. Defence economics 1991; 2(3): 199-208.

Copyright

(Copyright © 1991, Informa - Taylor and Francis Group)

DOI

10.1080/10430719108404692

PMID

unavailable

Abstract

A modified Richardson model of the arms race between Israel and the Arab bloc is found to be significant in statistical terms. The analysis uses co-integration methods and causality tests. Seen from the standpoint of the Arab bloc a causal equilibrium relationship exists with an elasticity close to one running from Israel's level of military expenditures to the Arab bloc's armament level. Disequilibrium behaviour dominates the armaments of Israel as it reacts only to current change in the Arab bloc's armament. In the terms of original Richardson model this means that the arms race system between these blocs is unstable.