Publication

This brief examines price variations in the defense sector, considers three competing explanations for why they exist, and highlights how the differing explanations complicate our ability to measure defense capabilities. (Note: The three explanatory tools that are typically used are 'defense inflation', 'cost escalation', and 'cost growth'.) The brief's author then concludes by touting 'capabilities-sensitive' cost metrics, including quality-adjusted cost escalation calculations.