ABSTRACT
This chapter attempts to model the incremental/fair share concept and then to identify the intrasystemic and intersystemic shocks which influenced deviations from budgeting as usual in the US department of defense (DoD) between 1948 and 1980. During the post-World War II period, the US DoD invested prodigious amounts of money in the development and subsequent modernization of its diverse, redundant and synergistic strategic force and in upgrading and strengthening its multipurpose conventional military force. Bureaucratic and organizational constraints encourage routinized incremental/fair share DoD calculations. Since the fair share model consists of interrelated shares of the budget, canonical correlational analysis is a very useful tool for analyzing resource allocation problems and deviations from perfect constant allocations. The unemployment and profits variables in the model were lagged one year to allow for countercyclical response to changes in economic conditions. The economic variables in the model are corporate profits and the annual rate of unemployment.
