Economics and defence policy : an overview -- How do economists analyse defence? -- The case for defence -- Defence budgets -- The determinants of defence expenditure -- Economics, politics, and public choice analysis -- Equipment procurement policy -- NATO and equipment standardisation -- The European Union : defence markets and industries -- The European defence technological and industrial base -- Evaluating international collaborative projects -- The UK defence industrial base -- Personnel policy -- Economics of military outsourcing -- Economics of the new security environment : terrorism, conflict, disarmament and peace -- Conclusion.