Simultaneous provision of defense and aid: Empirical evidence from the united states-Japan alliance

Minoru Okamura

Defence and Peace Economics, 2000, vol. 11, issue 1, 73-91

Abstract: This paper presents a multiple public-good model to investigate the simultaneous provision of military goods and foreign aid as international public goods. The model enables us to probe the effect of comparative advantage in providing public goods. By applying the model to the United States-Japan alliance, we find that within the framework of the alliance the United States will specialize in the provision of military goods, while Japan will specialize in foreign aid; that is, the United States has a comparative advantage in the provision of military goods, and Japan in foreign aid.

Keywords: Multiple public-good model; Alliance; Aid (search for similar items in EconPapers)
Date: 2000
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DOI: 10.1080/10430710008404940

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