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One-Dimensional Public Goods in Models of Alliance

In: International Governance and Risk Management

Author

Listed:
  • Toshihiro Ihori

    (National Graduate Institute for Policy Studies)

  • Martin C. McGuire

    (University of California, Irvine)

  • Shintaro Nakagawa

    (Konan University)

Abstract

An interesting application of non-cooperative private funding of public goodsPublic goods arises in international securityInternational security and national defenseNational defense. In their classical article on the economic theory of alliances, Olson and Zeckhauser (1966) demonstrated that countries may allocate some fraction of national incomeNational income to international (or regional) public goodsPublic goods (for example, special trading agreements, formation of international organizations, military preparedness, active international diplomacy, foreign aidForeign aid) to reduce regional and international tension and to avoid random emergency costs.

Suggested Citation

  • Toshihiro Ihori & Martin C. McGuire & Shintaro Nakagawa, 2019. "One-Dimensional Public Goods in Models of Alliance," Advances in Japanese Business and Economics, in: International Governance and Risk Management, chapter 0, pages 57-88, Springer.
    • Handle: RePEc:spr:advchp:978-981-13-8875-0_3
    DOI: 10.1007/978-981-13-8875-0_3
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