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On sharing NATO defence burdens in the 1990s and beyond

Author

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  • Todd Sandler
  • James C. Murdoch

Abstract

This article investigates NATO burden sharing in the 1990s in light of strategic, technological, political and membership changes. Both an ability-to-pay and a benefits-received analysis of burden sharing are conducted. During 1990-99, there is no evidence of disproportionate burden sharing, where the large allies shoulder the burdens of the small. Nevertheless, the theoretical model predicts that this disproportionality will plague NATO in the near future. Thus far, there is still a significant concordance between benefits received and defence burdens carried. When alternative expansion scenarios are studied, the extent of disproportionality of burden sharing increases as NATO grows in size. A broader security burden-sharing measure is devised and tested; based on this broader measure, there is still no disproportionality evident in the recent past.

Suggested Citation

  • Todd Sandler & James C. Murdoch, 2000. "On sharing NATO defence burdens in the 1990s and beyond," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 297-327, September.
  • Handle: RePEc:ifs:fistud:v:21:y:2000:i:3:p:297-327
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    File URL: http://www.ifs.org.uk/fs/articles/0026a.pdf
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    References listed on IDEAS

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    1. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, number 9780521630931, December.
    2. 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.
    3. Enders, Walter & Sandler, Todd, 1998. "Transnational Terrorism in the Post-Cold War Era," ISU General Staff Papers 199804010800001308, Iowa State University, Department of Economics.
    4. Smith, R P, 1989. "Models of Military Expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(4), pages 345-359, Oct.-Dec..
    5. Murdoch, James C., 1995. "Military alliances: Theory and empirics," Handbook of Defense Economics,in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 5, pages 89-108 Elsevier.
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    Cited by:

    1. Hendrik P. van Dalen & Mieke Reuser, 2005. "What drives Donor Funding in Population Assistance Programs?," Tinbergen Institute Discussion Papers 05-062/1, Tinbergen Institute.
    2. Natalia Utrero-Gonzalez & Jana Hromcová & Francisco J. Callado-Muñoz, 2017. "Defence Spending, Institutional Environment and Economic Growth: Case of NATO," Working Papers wpdea1704, Department of Applied Economics at Universitat Autonoma of Barcelona.
    3. Antonio Martínez González & Nuria Rueda López, 2013. "A Productivity And Efficiency Analysis Of The Security And Defence Technological And Industrial Base In Spain," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 147-171, April.
    4. Bove, Vincenzo & Efthyvoulou, Georgios & Navas, Antonio, 2017. "Political cycles in public expenditure: butter vs guns," Journal of Comparative Economics, Elsevier, pages 582-604.
    5. Wolfgang Buchholz & Todd Sandler, 2016. "Olson’s exploitation hypothesis in a public good economy: a reconsideration," Public Choice, Springer, vol. 168(1), pages 103-114, July.
    6. Ghislain Dutheil de la Rochère & Jean-Michel Josselin & Yvon Rocaboy, 2014. "SDI, NATO, and the Social Composition Function," Defence and Peace Economics, Taylor & Francis Journals, pages 85-95.
    7. Jomana Amara, 2008. "Nato Defense Expenditures: Common Goals Or Diverging Interests? A Structural Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(6), pages 449-469.
    8. Wolfgang Buchholz & Todd Sandler, 2016. "The Exploitation Hypothesis in a Public Good Economy: Some Extensions," CESifo Working Paper Series 5717, CESifo Group Munich.

    More about this item

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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