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Has Spain been free-riding in nato? An econometric approach†

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  • Pedro Gonzalez De La Fe
  • Daniel Montolio

Abstract

This paper examines the possible free-riding behaviour followed by Spain since the country joined NATO in 1982. Using a joint product model, we specify a reduced-form equation for the Spanish demand for military expenditure during the period 1977-1997. Our empirical estimates suggest that Spain could have been free-riding on NATO during this period. A possible more specific free-rider behaviour by Spain in relation to some of its Mediterranean military allies (France, Italy and Portugal) is examined as well.

Suggested Citation

  • Pedro Gonzalez De La Fe & Daniel Montolio, 2001. "Has Spain been free-riding in nato? An econometric approach†," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(5), pages 465-485.
    • Handle: RePEc:taf:defpea:v:12:y:2001:i:5:p:465-485
    DOI: 10.1080/10430710108404999
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    References listed on IDEAS

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    1. Murdoch, James C. & Sandler, Todd, 1984. "Complementarity, free riding, and the military expenditures of NATO allies," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 83-101, November.
    2. James C. Murdoch & Todd Sandler, 1982. "A Theoretical and Empirical Analysis of NATO," Journal of Conflict Resolution, Peace Science Society (International), vol. 26(2), pages 237-263, June.
    3. Murdoch, James C & Sandler, Todd, 1986. " The Political Economy of Scandinavian Neutrality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(4), pages 583-603.
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