The economics of defense or defense economics is a subfield of economics, an application of the economic theory to the issues of military defense.[1] It is a relatively new field. An early specialized work in the field is the RAND Corporation report The Economics of Defense in the Nuclear Age by Charles J. Hitch and Roland McKean ([1] 1960, also published as a book [2]).[2] It is an economic field that studies the management of government budget and its expenditure during mainly war times, but also during peace times, and its consequences on economic growth. It thus uses macroeconomic and microeconomic tools such as game theory, comparative statistics, growth theory and econometrics.[3] It has strong ties to other subfields of economics such as public finance, economics of industrial organization, international economics, labour economics and growth economics.