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Reconsidering publicness in alliance defence expenditures: NATO expansion and burden sharing

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  • William Gates
  • Katsuaki Terasawa
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    Abstract

    Over the past several decades, NATO allies have debated the relative burdens and benefits of NATO membership. Recently, this concern surfaced as members debated the magnitude and distribution of NATO expansion costs. This paper presents an economic model of defence alliances to identify the benefits and burdens of alliance membership. It suggests that defence expenditures provide public benefits if alliance members share common interests and mutual commitment; defence expenditures provide private benefits if countries lack common interests and mutual commitment. The model's results are used to discuss NATO's evolving roles and missions, NATO expansion and burden sharing across NATO members.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/10242690302924
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

    Volume (Year): 14 (2003)
    Issue (Month): 5 ()
    Pages: 369-383

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    Handle: RePEc:taf:defpea:v:14:y:2003:i:5:p:369-383

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    Web page: http://www.tandfonline.com/GDPE20

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    Related research

    Keywords: Burden Sharing; Defense Alliances; Nato; Public Goods;

    References

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    1. Irving B. Kravis & Michael W. S. Davenport, 1963. "The Political Arithmetic of International Burden-Sharing," Journal of Political Economy, University of Chicago Press, vol. 71, pages 309.
    2. Murdoch, James C. & Sandler, Todd, 1984. "Complementarity, free riding, and the military expenditures of NATO allies," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 83-101, November.
    3. Weber, S. & Wiesmeth, H., 1990. "Economic Models of NATO," Papers 90-7, York (Canada) - Department of Economics.
    4. Sandler, Todd, 1977. "Impurity of Defense: An Application to the Economics of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-60.
    5. Loehr, William, 1973. "Collective Goods and International Cooperation: Comments," International Organization, Cambridge University Press, vol. 27(03), pages 421-430, June.
    6. McGuire, Martin C & Groth, Carl H, Jr, 1985. "A Method for Identifying the Public Good Allocation Process within a Group," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 915-34, Supp..
    7. Weber, Shlomo & Wiesmeth, Hans, 1991. "Economic models of NATO," Journal of Public Economics, Elsevier, vol. 46(2), pages 181-197, November.
    8. Oneal, John R., 1990. "The theory of collective action and burden sharing in NATO," International Organization, Cambridge University Press, vol. 44(03), pages 379-402, June.
    9. Sandler, Todd & Murdoch, James C, 1990. "Nash-Cournot or Lindahl Behavior? An Empirical Test for the NATO Allies," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 875-94, November.
    10. Hartley, Keith & Sandler, Todd, 1999. "Nato Burden-Sharing: Past and Future," Staff General Research Papers 1656, Iowa State University, Department of Economics.
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