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Abstract

This paper derives systems of demand equations for distinguishing between Nash-Cournot and Lindahl behavior in a group that either shares a pure public good or an activity that provides a private and a pure public joint product. Systems of simultaneous equations are estimated based upon Nash-Cournot and Lindahl behavior for a sample of ten NATO allies for the 1956-87 period. Nonnested hypothesis tests support the Nash-Cournot specification for five of the ten sample allies. No evidence of Lindahl behavior is found. The Nash-Cournot joint-product specification outperforms the pure public model for all sample allies. Copyright 1990, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 105 (1990)
Issue (Month): 4 (November)
Pages: 875-94

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Handle: RePEc:tpr:qjecon:v:105:y:1990:i:4:p:875-94

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Cited by:

1. Andreas Löschel & Dirk T.G. Rübbelke, 2009. "Impure public goods and technological interdependencies," Journal of Economic Studies, Emerald Group Publishing, vol. 36(6), pages 596-615, November.
   
   • Dirk T.G. Rübbelke & Andreas Löschel, 2005. "Impure Public Goods and Technological Interdependencies," Working Papers 2005.60, Fondazione Eni Enrico Mattei.
   • Löschel, Andreas & Rübbelke, Dirk T. G., 2005. "Impure Public Goods and Technological Interdependencies," ZEW Discussion Papers 05-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
2. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group.
3. Kotchen, Matthew J., 2007. "Equilibrium existence and uniqueness in impure public good models," Economics Letters, Elsevier, vol. 97(2), pages 91-96, November.
4. Finus, Michael & Rubbelke, Dirk T G, 2008. "Coalition Formation and the Ancillary Benefits of Climate Policy," Stirling Economics Discussion Papers 2008-13, University of Stirling, Division of Economics.
   
   • Michael Finus & Dirk T.G. Rübbelke, 2008. "Coalition Formation and the Ancillary Benefits of Climate Policy," Working Papers 2008.62, Fondazione Eni Enrico Mattei.
5. Martial Foucault, 2005. "Biens publics et défense européenne : quel processus d'allocation ?," Post-Print halshs-00197130, HAL.
   
   • Martial Foucault, 2005. "Biens publics et défense européenne : quel processus d'allocation ?," Cahiers de la Maison des Sciences Economiques j05082, Université Panthéon-Sorbonne (Paris 1).
6. John A Conbeare & James C Murdoch & Todd Sandler, 2001. "Alternative Collective-Goods Models of Military Alliances: Theory and Empirics," Levine's Working Paper Archive 563824000000000102, David K. Levine.
   
   • Conybeare, John A C & Murdoch, James C & Sandler, Todd, 1994. "Alternative Collective-Goods Models of Military Alliances: Theory and Empirics," Economic Inquiry, Western Economic Association International, vol. 32(4), pages 525-42, October.
7. Dirk T.G. Rübbelke & Anil Markandya, 2008. "Impure Public Technologies and Environmental Policy," Working Papers 2008.76, Fondazione Eni Enrico Mattei.
   
   • Anil Markandya & Dirk T.G. Rübbelke, 2012. "Impure public technologies and environmental policy," Journal of Economic Studies, Emerald Group Publishing, vol. 39(2), pages 128-143, May.
8. Todd Sandler, 2005. "Nato Benefits, Burdens And Borders: Comment," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(4), pages 317-321.
9. Brunner, Eric & Sonstelie, Jon, 2003. "School finance reform and voluntary fiscal federalism," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2157-2185, September.
10. Binyam Solomon, 2005. "The demand for Canadian defence expenditures," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(3), pages 171-189.
11. Snyder, Susan K., 1999. "Testable restrictions of Pareto optimal public good provision," Journal of Public Economics, Elsevier, vol. 71(1), pages 97-119, January.
12. William Gates & Katsuaki Terasawa, 2003. "Reconsidering publicness in alliance defence expenditures: NATO expansion and burden sharing," Defence and Peace Economics, Taylor and Francis Journals, vol. 14(5), pages 369-383.
13. Robert P. Inman & Daniel L. Rubinfeld, 1991. "Fiscal Federalism in Europe: Lessons From the United States Experience," NBER Working Papers 3941, National Bureau of Economic Research, Inc.
14. Raechelle Mascarenhas & Todd Sandler, 2006. "Do donors cooperatively fund foreign aid?," The Review of International Organizations, Springer, vol. 1(4), pages 337-357, December.
15. Martial Foucault, 2006. "Europe de la Défense. Quel processus d'allocation ?," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 407-417.
16. Karen Pittel & Dirk Rubbelke, 2006. "What Directs a Terrorist?," Defence and Peace Economics, Taylor and Francis Journals, vol. 17(4), pages 311-328.
17. Francisca Antman, 2007. "Who Cares for the Elderly? Intrafamily Resource Allocation and Migration in Mexico," Discussion Papers 06-031, Stanford Institute for Economic Policy Research.

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