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Europe de la Défense. Quel processus d'allocation ?


  • Martial Foucault


The European Union has decided to implement in 1999 an independent European security and defence policy (esdp). As preferences in defence issues are strongly heterogeneous, it is required to determine the kind of allocation process for providing defence resources within this European space. By assuming European security as an impure public good due to spillin effects and considering an economics of alliance framework, this article aims at verifying whether a Nash-Cournot process or Lindhal process is better suitable for the esdp. Based on an econometric analysis for the 1980-2002 period, it is verified that the Europe of Defence follows a Nash-Cournot process for 10 out of 15 European countries. This result emphasizes the difficulty for defining a fiscal price in defence. Classification JEL : H0, H56, H87

Suggested Citation

  • Martial Foucault, 2006. "Europe de la Défense. Quel processus d'allocation ?," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 407-417.
  • Handle: RePEc:cai:recosp:reco_573_0407

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    References listed on IDEAS

    1. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
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    4. Martin C. McGuire & Carl H. Groth, 1985. "A Method for Identifying the Public Good Allocation Process Within a Group," The Quarterly Journal of Economics, Oxford University Press, vol. 100(Supplemen), pages 915-934.
    5. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    6. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
    7. Binyam Solomon, 2003. "Defence specific inflation: A Canadian perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(1), pages 19-36.
    8. Todd Sandler & James C. Murdoch, 1990. "Nash-Cournot or Lindahl Behavior?: An Empirical Test for the NATO Allies," The Quarterly Journal of Economics, Oxford University Press, vol. 105(4), pages 875-894.
    9. Kollias, Christos & Manolas, George & Paleologou, Suzanna-Maria, 2004. "Defence expenditure and economic growth in the European Union: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 553-569, July.
    10. Marc Guyot & Radu Vranceanu, 2001. "European defence: The cost of partial integration," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(2), pages 157-174.
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    Cited by:

    1. Renaud Bellais & Martial Foucault & Jean-Michel Oudot, 2014. "Économie de la défense," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01052607, HAL.

    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods


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