Has Spain been free-riding in nato? An econometric approach†

Pedro Gonzalez De La Fe and Daniel Montolio

Defence and Peace Economics, 2001, vol. 12, issue 5, 465-485

Abstract: This paper examines the possible free-riding behaviour followed by Spain since the country joined NATO in 1982. Using a joint product model, we specify a reduced-form equation for the Spanish demand for military expenditure during the period 1977-1997. Our empirical estimates suggest that Spain could have been free-riding on NATO during this period. A possible more specific free-rider behaviour by Spain in relation to some of its Mediterranean military allies (France, Italy and Portugal) is examined as well.

Keywords: Demand for Military Expenditure; Free-Riding; NATO (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1080/10430710108404999

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