Armed Conflict and Relations of its Economic Analysis

The topic of this essay is an insight into the interrelations of the economic analysis of armed conflict. The author tries to explain its substance and importance and at the same time he warns against the difficulties with its implementation. Backed by several studies, we must conclude that there is a lot of confusion in terminology we use. It is therefore proposed to apply cost-benefit analysis, so that we could create a unified terminology and simultaneously to use this analysis to present armed conflict economy in terms of overall expenses vs. likely benefits aroused by respective armed warfare.