IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v25y2014i3p213-229.html
   My bibliography  Save this article

International Security, Multiple Public Good Provisions, and The Exploitation Hypothesis

Author

Listed:
  • Toshihiro Ihori
  • Martin McGuire
  • Shintaro Nakagawa

Abstract

Since the 1960s Olson-Zeckhauser's (1966) analysis, its 'exploitation of the great by the small' has provided economists' core model of alliance's provision of security/defense. But with the end of the Cold War, countries' allocative behavior has diverged markedly from OZ's predictions for defense as a homogeneous pure public good voluntarily provided. This paper suggests a replacement for OZ, with the essential difference that 'defense' rather than being aggregated into their single public good is disaggregated into more realistic categories of self-insurance and self-protection. Because allocative behavior in public good groups is essentially driven by income effects, we concentrate on these, which become complex and conflicted, giving much greater scope for goods-inferiority. The analysis is followed by numerical simulations, which conform to actual experienced allocations in NATO much better than the conventional 'exploitation' model.

Suggested Citation

  • Toshihiro Ihori & Martin McGuire & Shintaro Nakagawa, 2014. "International Security, Multiple Public Good Provisions, and The Exploitation Hypothesis," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(3), pages 213-229, June.
  • Handle: RePEc:taf:defpea:v:25:y:2014:i:3:p:213-229
    DOI: 10.1080/10242694.2012.752229
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10242694.2012.752229
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Wolfgang Buchholz & Todd Sandler, 2016. "The Exploitation Hypothesis in a Public Good Economy: Some Extensions," CESifo Working Paper Series 5717, CESifo Group Munich.
    3. Vesa Kanniainen & Staffan Ringbom, 2015. "The Value of NATO Option for a New Member," CESifo Working Paper Series 5399, CESifo Group Munich.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:defpea:v:25:y:2014:i:3:p:213-229. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GDPE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.