ABSTRACT
This chapter analyses the adequacy of the incremental/fair share argument, and assesses the relative impact of the various explanations of deviations from normal disaggregated US defense spending. While the budgetary policymaking process in the department of defense (DoD) proceeds from a relatively secure budgetary base, the marginal DoD annual changes are expected to be distributed roughly proportionately among DoD programs. The statistical analysis of the determinants of fluctuations in military personnel outlays in 1948-1980 reveals the importance of a variety of political and international factors in influencing the level of DoD military personnel spending. The empirical findings reveal that when the expenditure gap between the United States and the Soviet Union is increasing, operation and maintenance costs typically grow substantially. The resources allocated to military research and development are intended primarily for the development of new weapon systems and for the improvement of advanced command, control and communication systems.
