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The Political Economy of Scandinavian Neutrality

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  • Murdoch, James C
  • Sandler, Todd

Abstract

The article examines whether three of the neutral nations of Eu rope (Sweden, Switzerland and Finland) have adhered to their choice of armed neu trality by being self-reliant on their own defenses. Using a joint product model , the authors specify a reduced-form equation for a nation's demand for military expenditures. Empirical estimates of these demands suggest that Sweden free rod e on NATO after institution of the doctrine of flexible response; however, the o thertwo netural nations have been self-reliant throughout the period 1957-82. W ith pooled data, cross-equation restrictions highlight theessential differences between NATO and nonaligned Scandinavian countries. Copyright 1986 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Murdoch, James C & Sandler, Todd, 1986. "The Political Economy of Scandinavian Neutrality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(4), pages 583-603.
    • Handle: RePEc:bla:scandj:v:88:y:1986:i:4:p:583-603
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    Cited by:

    1. Rosch-Grace, Dominic & Straub, Jeremy, 2022. "Analysis of the likelihood of quantum computing proliferation," Technology in Society, Elsevier, vol. 68(C).
    2. Wallace J. Thies, 1987. "Alliances and Collective Goods," Journal of Conflict Resolution, Peace Science Society (International), vol. 31(2), pages 298-332, June.
    3. Jari Eloranta, 2015. "Pro Bono Publico? Demand for military spending between the World Wars," Working Papers 15016, Economic History Society.
    4. Young-Wan Goo & Seung-Nyeon Kim, 2009. "A study on the military alliance of South Korea–United States with the existence of threat from North Korea: a public good demand approach," Empirical Economics, Springer, vol. 36(3), pages 597-610, June.
    5. Pedro Gonzalez De La Fe & Daniel Montolio, 2001. "Has Spain been free-riding in nato? An econometric approach†," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(5), pages 465-485.
    6. Minoru Okamura, 2022. "Identifying the public goods allocation process: case of the North Atlantic Treaty Organization," Empirical Economics, Springer, vol. 63(3), pages 1707-1726, September.
    7. Todd Sandler, 1993. "The Economic Theory of Alliances," Journal of Conflict Resolution, Peace Science Society (International), vol. 37(3), pages 446-483, September.
    8. Young‐Wan Goo & Seung‐Nyeon Kim, 2012. "Time-Varying Characteristics Of South Korea-United States And Japan-United States Military Alliances Under Chinese Threat: A Public Good Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(1), pages 95-106, February.

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