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Defence Economics

Defence Economics

Data is displayed for the academic year: 2025./2026.

Course Description

The aim is to study application and methods of economic science in the field of defence and defence expenditure. On macro level, trends and relationship between defence and public expenditures is being studied as well as their influence on GDP. Subject of analysis are components of defence expenditures, options and methods for achieving overall efficiency, including NATO and EU membership.

Study Programmes

undergraduate
Military Leadership and Management - study
(4. semester)

Learning Outcomes

  1. Define the relatioship between security and economic welfare
  2. Recognize the role of analytical tools in defence management
  3. Describe the defence industrial base and the defence equipment market in the modernization of armed forces
  4. Explain the economic characteristics of human resources in defence area and advantages as well as disadvantages of professional force
  5. Analyze and clasify military expenditures, and the trends in their relationship to GDP and to total public expenditures
  6. Show the understanding of theory of military alliances
  7. Recognize financial and resource aspects of military force and capability development issues regarding the Croatian membership in NATO and EU
  8. Explain the structure and management of defence expenditures in Croatia

Forms of Teaching

Lectures

Lectures

Seminars and workshops

Application of theoretical concepts in seminars and presentation of papers to colleagues

Exercises

Solving practical problems of the field individually and in groups

Work with mentor

Consulting with lecturers about the seminars and understanding of the learning contents

Week by Week Schedule

  1. Lecture: Introductory ecoonomics - Microeconomics Seminar: Introductory seminar Exercise: Introductory excercise
  2. Lecture: Introductory ecoonomics - Macroeconomics Lecture: Introductory ecoonomics - Public finance
  3. Seminar: Dynamics of defence and public expenditures in the world Seminar: International cooperation in capability development Seminar: Defence market - main features Exercise: Economic consideratons in the defence sector - historical review
  4. Lecture: National security and economics - review. Security and economic welfare Seminar: Financing of peace support operation Seminar: Defence Market in EU
  5. Lecture: Defence expenditures and expansion of public sector in 20th centura. Strukture and dynamics of defence expenditres related to public sector and GDP Lecture: Concept, definition and classification of military expenditures
  6. Lecture: Defence as public good, characteristics of defence as pure public good. Economic theories of military alliances: pure public good model and joint product model. Burden sharing in military alliances Seminar: Supply and demand for human resources in defence sector Exercise: International cooperation and efficiency gains on NATO and EU level
  7. Midterm exams - 1. colloquium
  8. Lecture: Development policy of defence industry Seminar: War financing Exercise: War and defence expeditures, full costs
  9. Lecture: Resource management in NATO and CSDP (EU) Seminar: All vollunteer vs. profesional army in history Exercise: Drafting versus profesionalization, comparative advantages and disadvantages - international review
  10. Lecture: Economic characteristics of human resourses in armed forces Seminar: Defence expenditures structure in NATO Exercise: Influence of NATO and EU membership on long term capability development of croatian armed forces
  11. Lecture: Management of expenditures for defence procurement Seminar: Modern business methods in defence - outsourcing Exercise: Military industrial sector - characteristics, opportunities, perils
  12. Lecture: Methods of evaluation of defence expenditures. Defence expenditures and economic growth Seminar: Budgetary Legislation in Republic of Croatia Seminar: Defence budgeting in MoD
  13. Lecture: Financing of research and development activities in defense sector Seminar: Programming phase of Planning Programming and Budgeting System Seminar: Budget expenditures of MoD
  14. Lecture: Size, structure and trends in defence and public expenditures in Republic of Croatia Lecture: Structure and management of defence budget in Republic of Croatia
  15. Midterm exams - 2. colloquium

Literature

Igor Karnjuš (2008.), Financiranje obrane, Golden Markleting, IROS, Zagreb
Keith Hartley, Todd Sandler (2007.), Handbook of Defence Economics, Elsevier
Todd Sandler, Keith Hartley (1999.), The Political Economy of NATO, Cambridge University Press
Karnjuš Igor Barić Robert i Smiljanić Dražen (2017.), Obrambeno planiranje u RH u kontekstu članstva u NATO-u i EU-u: studija, Hrvatsko vojno učilište „Dr. Franjo Tuđman“

For students

General

ID 282169
  Summer semester
4.0 ECTS
L0 English Level
L1 e-Learning
30 Lectures
15 Seminar
15 Exercises