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Burden Sharing In Nato


  • John A. Papanastasiou
  • Ioannis T. Lazaridis
  • Theofanis Karagiorgos


During the period of cold war, NATO alliance was producing defence commodity to protect its members from the common threat of ex-Soviet Union. The paper examines the problem of burden sharing among NATO allies. It is shown that larger countries are benefited more than smaller countries from the production of the public good i.e defence, if the income elasticity of marginal utility of income is greater than one in absolute value. Complete demand systems are employed for estimating the income elasticity of marginal utility of income.

Suggested Citation

  • John A. Papanastasiou & Ioannis T. Lazaridis & Theofanis Karagiorgos, 2003. "Burden Sharing In Nato," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 207-220, July - De.
  • Handle: RePEc:ers:journl:v:vi:y:2003:i:3-4:p:207-220

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    References listed on IDEAS

    1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Economic Convergence and Economic Policies," NBER Working Papers 5039, National Bureau of Economic Research, Inc.
    2. Ray, Subhash C & Desli, Evangelia, 1997. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries: Comment," American Economic Review, American Economic Association, vol. 87(5), pages 1033-1039, December.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, March.
    5. James R. Tybout, 2001. "Plant- and Firm-Level Evidence on "New" Trade Theories," NBER Working Papers 8418, National Bureau of Economic Research, Inc.
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    More about this item


    NATO; burden sharing; marginal utility; income elasticity;

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D69 - Microeconomics - - Welfare Economics - - - Other


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