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Military alliances: Theory and empirics

In: Handbook of Defense Economics


  • Murdoch, James C.


This chapter provides an overview of the main theoretical and empirical findings in the economics of military alliances. The pure public and joint product models are presented along with the empirical methods used to test them. Issues concerning burden sharing and strategic doctrine in the NATO alliance are discussed. Comparisons between the Nash and Lindahl allocation processes are made by presenting the empirical work that has attempted to distinguish between them. Attention is also given to the median-voter model and to alternative technologies of public good supply.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:hdechp:1-05

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    Cited by:

    1. Burnett, Kimberly M., 2006. "Introductions of Invasive Species: Failure of the Weaker Link," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-8, April.
    2. 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.
    3. Ugurhan Berkok, 2005. "Specialization in defence forces," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(3), pages 191-204.
    4. Justin George & Todd Sandler, 2021. "EU Demand for Defense, 1990–2019: A Strategic Spatial Approach," Games, MDPI, vol. 12(1), pages 1-18, February.
    5. Jyoti Khanna & Todd Sandler & Hirofumi Shimizu, 1998. "Sharing the Financial Burden for U.N. and NATO Peacekeeping, 1976-1996," Journal of Conflict Resolution, Peace Science Society (International), vol. 42(2), pages 176-195, April.
    6. Garcia-Alonso, Maria D.C. & Levine, Paul & Smith, Ron, 2016. "Military aid, direct intervention and counterterrorism," European Journal of Political Economy, Elsevier, vol. 44(C), pages 112-135.
    7. George, Justin & Sandler, Todd, 2018. "Demand for military spending in NATO, 1968–2015: A spatial panel approach," European Journal of Political Economy, Elsevier, vol. 53(C), pages 222-236.
    8. Enrico Spolaore, 2004. "Economic Integration, International Conflict and Political Unions," Rivista di Politica Economica, SIPI Spa, vol. 94(5), pages 3-50, September.

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