Cobb-Douglas production function as an approach for better resource allocation in the Ukrainian Armed Forces

Abstract

The purpose of this thesis is to analyze the defense and budget planning processes in the Armed Forces of Ukraine. Currently, there is a growing need to establish an effective system of defense planning in the armed forces as well as for integrating that system of planning with budget planning to create a single system. This integrated system would provide an opportunity to create reliable mechanisms that would enhance the efficiency and quality of budget management in the MoD and would make this process more flexible and transparent. The scientific value of the work presented in this thesis is in the critical analysis of the defense and budget planning state in the MoD and the armed forces. Also valuable is the research on effective methods for the improvement of these processes. The most significant areas of difficulty related to intermediate and long-term planning are identified, and the techniques for the macroeconomic analysis and forecasting of resource support for the armed forces based on the Cobb-Douglas production function are proposed. In this thesis all stages of the defense planning and budgeting processes were studied, weaknesses in the allocation of defense resources revealed, and the mechanism for their effective use proposed.