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This compelling book provides an up-to-date survey of the field of defense economics, the study of defense and peace issues, with the application of economic analysis and methods. The subject embraces both microeconomics and macroeconomics, taking into account such features as growth theory, comparative statistics, game theory and econometrics. A wide range of topics are addressed, including all aspects of the economics of defense, disarmament, conversion and peace. The implications of different organizational forms and their performances are examined, considering the efficient management of defense resources budgets and internal markets in the armed forces. In this groundbreaking volume, Sandler and Hartley synthesize and unify the vast literature on defense economics and peace science.