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On sharing NATO defence burdens in the 1990s and beyond

Author

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  • Todd Sandler
  • James C. Murdoch

Abstract

This article investigates NATO burden sharing in the 1990s in light of strategic, technological, political and membership changes. Both an ability-to-pay and a benefits-received analysis of burden sharing are conducted. During 1990-99, there is no evidence of disproportionate burden sharing, where the large allies shoulder the burdens of the small. Nevertheless, the theoretical model predicts that this disproportionality will plague NATO in the near future. Thus far, there is still a significant concordance between benefits received and defence burdens carried. When alternative expansion scenarios are studied, the extent of disproportionality of burden sharing increases as NATO grows in size. A broader security burden-sharing measure is devised and tested; based on this broader measure, there is still no disproportionality evident in the recent past.

Suggested Citation

  • Todd Sandler & James C. Murdoch, 2000. "On sharing NATO defence burdens in the 1990s and beyond," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 297-327, September.
  • Handle: RePEc:ifs:fistud:v:21:y:2000:i:3:p:297-327
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    References listed on IDEAS

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    1. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, number 9780521630931, January.
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    8. Murdoch, James C., 1995. "Military alliances: Theory and empirics," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 5, pages 89-108, Elsevier.
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    Cited by:

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    12. Marek Loužek, 2009. "Ekonomie bezpečnosti - jsou teroristé racionální? [Economics of security - are terrorists rational?]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(2), pages 177-193.
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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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