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The Welfare Effects of Disarmament on the United States under NATO and the Warsaw Pact

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  • Okamura, Minora

Abstract

This paper develops a model of disarmament by incorporating rationing theory into the economic theory of alliance. In order to provide an econometric measure of welfare gain from a disarmament treaty, the author employs the cost functions predicated on rationed and unrationed demand systems. By combining the economic theory of foreign aid with that of alliance, the author examines the impact of disarmament on the developed economies' foreign aid to developing countries as a peace dividend. The model is applied to the case of the U.S. economy under mutual disarmament between NATO and the Warsaw pact. Copyright 1996 by MIT Press.

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  • Okamura, Minora, 1996. "The Welfare Effects of Disarmament on the United States under NATO and the Warsaw Pact," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 277-285, May.
    • Handle: RePEc:tpr:restat:v:78:y:1996:i:2:p:277-85
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    Cited by:

    1. Bragoudakis Zacharias G. & Zombanakis George A., 2017. "Earning a Peace Dividend in a Crisis Environment: The Greek Case," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 23(3), pages 1-15, August.
    2. 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.
    3. Toshinobu Matsuda, 2005. "Differential Demand Systems: A Further Look at Barten's Synthesis," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 607-619, January.

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