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

Author

Listed:
  • 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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