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鸡西翻译公司关键字：development for the defense industry lay hidden. In addition, Western governments are usually some special interest group representatives, and its defense industry policy is mainly to serve the voters of the arms and the special interests of a particular region, it is difficult to run with the efficiency of the defense industry consistent with the objectives. In addition, government procurement as a government agent who, because of its "economic man" feature is also easy to "self-dealing" or collusion with vendors, manufacturers unreasonable by meeting the requirements to achieve the interests of maximizing individual interests, leading to non-resource production, resulting in inefficient allocation of resources or inefficient.
2. The low efficiency of government agencies. Government to intervene effectively in economic activities necessary condition is that government agencies must be efficient. Government efficiency, the government is less able to invest for higher output. However, in reality, government agencies are often high input, low output, low efficiency characteristics. The reason: first, military equipment procurement and management of institutions is a non-market institutions, its income (disposable resources) mainly from the formation of the government through taxes and finances, entirely contrary to the principles of the market elements of remuneration, the expenditures are used in equipment procurement, public expenditure, the lack of hard constraint mechanism. As the revenue and cost of government activities is fragmented, and therefore government intervention in the defense industry on the lack of motivation and pressure to reduce costs, resulting in low efficiency of government action. Second, government action is a kind of monopolistic activity, not the pressure of competition eliminated, even if the low efficiency of government agencies, you can still continue to survive. Meanwhile, the government agencies to assess and evaluate the efficiency is very difficult. According to Wolf's argument, not a formula to explain the need for government activities and minimum outputs, there is no simple and consistent standard can be used to accurately measure the "non-market" the size. [3] again, the Government's expansion led to increasing costs, making it difficult to improve the efficiency of government agencies. Government intervention in the defense of the low efficiency of industrial activities, not only for the government of the act itself high input and low output, and ultimately result in inefficient operation of the defense industry or inefficiency, the defense industry must invest more to obtain a certain the output.
3. Incomplete information and policy limitations. The effectiveness of government intervention in economic activity, depends largely on the policy is reasonable, and correct implementation of sound policy. This has to some extent depends on the government to grasp the full nature of the information level. In reality, military companies have their private information, and in possession of information that has certain advantages, the government can not monitor all of their behavior, and thus the effect government policies have some limitations. For example, in military order, the Government there is a technical performance of weapons systems preferences, manufacturers put the development of technologically advanced military weapons systems as the best way to get a production contract. For military companies concerned, if the initial contract may lead to win the next "buy-in" to gain more profits. To this end, won the initial contract manufacturers to use its information advantage will report their risk or hidden costs, and in the subsequent execution of the contract to cover the losses. If the government in the production of weapons systems, risk and cost information can not grasp more fully, it could result in errors on the vendor's choice to make defense contracts does not fall into the "excellent" in the hands of manufacturers, so-called "adverse selection" problem . When the Government decided to major weapons system from a vendor to produce when the price of weapons systems can not be determined through competition, the vast majority of production of the signing of the contract, will only vendor with an outcome of the negotiations. [4] Government and manufacturers share pricing information is asymmetric, usually manufacturers share information more fully, and thus the government pricing decisions may be difficult to play a role in encouraging manufacturers to reduce costs, resulting in loss of productivity weapons systems.
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