The Economics of Buying Complex Weapons

Defence procurement is an important current policy issue in Australia. On one hand, there is a build-up in defence outlays as a result of the war on terrorism, our military�s involvement in peace missions in our region and beyond, and changes in the threats facing Australia. Given the extra resources directed to defence, it is natural to expect that these expenses will be subjected to a greater degree of scrutiny. On the other hand, greater public scrutiny also follows from a history of major delays and cost overruns in the Collins Class submarines and the Jindalee Operational Radar Network projects.