The subject of peace economics and its ramifications are comprehensively and deeply attacked in this book. First of all the book presents a compact survey of significant contributions already made, and then it provides a broad theoretical background for examining the subject by evaluating four different approaches, those of 1) neoclassical welfare theory, 2) Keynesian and modern versions of macroeconomics, 3) modern growth theory and 4) political choice theory. A number of contributions deal with major questions on issues such as the impact of military cutbacks in the Eastern European economies upon their growth; trade between nations; arms trade; nuclear defense; and the benefits and costs of war as highlighted by the recent Gulf War. Issues of a more general nature but equally significant are also discussed, including the age-old negotiations problem of two mature political leaders of major powers in conflict; the determinants of military expenditures; and the problems of developing countries. In the last chapter the findings of the studies reported in the book are summarized and key directions for further research are identified. This book is indispensable for any economist or analyst conducting research on peace economics and the peace process or concerned with the impacts of recent arms reduction and conversion by the major powers and the escalation of military expenditures elsewhere.