Economic Theory of Alliances
Sixty Years Later
Bibliographic Data
| ID | 10071687 |
|---|---|
| Authors | Tod Sandler (0000-0001-9077-5915, The University of Texas at Dallas, corresponding author), Justin George (0000-0002-7635-4556, Texas A&M University) |
| Year | 2025 |
| Volume | 70 |
| Issue | 2-3 |
| Pages | 525-555 |
| Publication date | 2025-07-15 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Conflict Resolution (JOURNAL) |
| Journal identifiers | ISSN: 0022-0027 • E-ISSN: 1552-8766 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/00220027251359626 |
| OpenAlex | W4412425645 |
| Language | EN |
| Citations received | 1 |
| References cited | 73 |
The main purpose of this retrospective of the economic theory of alliances is to characterize three basic paradigms: purely public deterrence, spatial connectivity, and joint products. For each model, allies’ military expenditure (ME) responds differently to the aggregate ME of the other allies, known as defense spillins, thereby resulting in diverse burden sharing, allocative implications, membership composition, and institutional recommendations. The underlying theoretical models determine reduced-form equations for allies’ interdependent defense demands. We examine how changes in strategic doctrines, weapons technology, enemy threats, and membership composition affected NATO burden sharing and its allocative efficiency over time. Generally, changes that increase the share of excludable defense benefits possess a better prognosis for burden sharing and allocative efficiency. Principles and insights from the economic theory of alliances are related to defense demands at the operational level and for non-NATO alliances
Economics · Political economy · Political science · Positive economics · Defense, Military, and Policy Studies · Global Economic and Social Development · Global trade and economics · Psychology
What price vigilance?
The Theory of Externalities, Public Goods, and Club Goods
Economics of Alliances
Impurity of Defense
Burden Sharing, Strategy, and the Design of Nato
Estimation of simultaneous systems of spatially interrelated cross sectional equations
An expanded investigation of alliance security free riding
A spatial analysis of Nato burden sharing at the operational levels
The Logic of Collective Action
Sharing the Defense Burden Among Western Allies
An Economic Theory of Alliances
Nato Burden Sharing 1999-2010
Alliances as Contiguity in Spatial Models of Military Expenditures
From weakest-link to best-shot
The demand for military expenditures
An Economic Theory of Clubs
The Demand for Military Expenditure
Nato Burden-Sharing
Nato Burden Sharing and the Forces of Change
A spatiotemporal analysis of Nato member states' defense spending
On the Economic Theory of Alliances
Multiple Goals or Deterrence
The Continent or the “Grand Large”? Strategic Culture and Operational Burden-Sharing in Nato
Rusty guns and buttery soldiers
Arms Racing in ‘Space
African Union defense demand and spatial spillovers
Accidental rivals? EU fiscal rules, Nato, and transatlantic burden-sharing
Impacts of neighboring countries on military expenditures
Disaggregated defense spending
Measuring Space
The Triple Entente and the Triple Alliance 1880-1914
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |