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Contributing to the global public good: the case of NATO

Author

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  • Krüger, Jens J.
  • Neugart, Michael

Abstract

While the provision of global public goods generally suffers from free-riding, standard theory also predicts that countries with stronger preferences for the public good contribute more. We take the case of NATO countries’ military expenditures after Russia’s annexation of Crimea as a natural experiment to test the prediction within a synthetic control framework. We find that NATO members with a land border with Russia or Ukraine increased their military expenditures more than synthetically constructed control countries, confirming the prediction. Moreover, NATO countries without a land border to Russia or Ukraine did not decrease their military expenditures.

Suggested Citation

  • Krüger, Jens J. & Neugart, Michael, 2026. "Contributing to the global public good: the case of NATO," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 151752, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:151752
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/151752/
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