CIAO DATE: 03/2013
February 2013
This working paper considers economic aspects of the US firearms industry, specifically the civilian, private security, and law enforcement (i.e. non-military) markets for pistols, revolvers, rifles, and shotguns. Although it provides estimates of annual firearms demand in the United States from 1999 to 2010, primarily the paper examines supply-side issues, including: (1) the number of firearms producers selling weapons to end users; (2) the number of firearms produced and disposed of in trade; (3) freedom of entry into and exit from the industry; (4) industry consolidation in the various firearms market segments; (5) competition by overseas firms; (6) firearms exports and imports that complement US-based production; and (7) the structure of the industry (ranging from competitive to monopolistic). The production of ‘miscellaneous firearms’ (e.g. machine guns or separate frames or receivers, actions, or barrelled actions; see below) and production for export are not considered in this paper. Similarly, intra-industry trade, such as contract manufacturing, is not dealt with here.
Resource link: The US Firearms Industry: Production and Supply [PDF]