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Reconsidering publicness in alliance defence expenditures: NATO expansion and burden sharing

  • William Gates
  • Katsuaki Terasawa
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    Over the past several decades, NATO allies have debated the relative burdens and benefits of NATO membership. Recently, this concern surfaced as members debated the magnitude and distribution of NATO expansion costs. This paper presents an economic model of defence alliances to identify the benefits and burdens of alliance membership. It suggests that defence expenditures provide public benefits if alliance members share common interests and mutual commitment; defence expenditures provide private benefits if countries lack common interests and mutual commitment. The model's results are used to discuss NATO's evolving roles and missions, NATO expansion and burden sharing across NATO members.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/10242690302924
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    Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

    Volume (Year): 14 (2003)
    Issue (Month): 5 ()
    Pages: 369-383

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    Handle: RePEc:taf:defpea:v:14:y:2003:i:5:p:369-383
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    1. 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.
    2. Robert E. Kuenne, 1988. "Conflict Management and the Theory of Mature Oligopoly," Conflict Management and Peace Science, Peace Science Society (International), vol. 10(1), pages 37-57, February.
    3. Sandler, Todd & Murdoch, James C, 1990. "Nash-Cournot or Lindahl Behavior? An Empirical Test for the NATO Allies," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 875-94, November.
    4. 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.
    5. repec:cup:cbooks:9780521630931 is not listed on IDEAS
    6. Sandler, Todd, 1977. "Impurity of Defense: An Application to the Economics of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-60.
    7. Irving B. Kravis & Michael W. S. Davenport, 1963. "The Political Arithmetic of International Burden-Sharing," Journal of Political Economy, University of Chicago Press, vol. 71, pages 309.
    8. Loehr, William, 1973. "Collective Goods and International Cooperation: Comments," International Organization, Cambridge University Press, vol. 27(03), pages 421-430, June.
    9. Weber, S. & Wiesmeth, H., 1990. "Economic Models of NATO," Papers 90-7, York (Canada) - Department of Economics.
    10. Weber, Shlomo & Wiesmeth, Hans, 1991. "Economic models of NATO," Journal of Public Economics, Elsevier, vol. 46(2), pages 181-197, November.
    11. Hartley, Keith & Sandler, Todd, 1999. "Nato Burden-Sharing: Past and Future," Staff General Research Papers 1656, Iowa State University, Department of Economics.
    12. McGuire, Martin C & Groth, Carl H, Jr, 1985. "A Method for Identifying the Public Good Allocation Process within a Group," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 915-34, Supp..
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