Gupta, Rupayan (2010): Changing threat perceptions and the efficient provisioning of international security.
Download (262Kb) | Preview
This paper proposes a mechanism for structuring international institutions to efficiently provision global security against the threat of a rogue nation. The effects of security effort by an alliance member are assumed to be non-rival and non-excludable for other members. Specifically, this effort has both positive and negative effects, as security measures prevent attacks by the rogue nation, but also involves loss of commercial and diplomatic benefits. Further, the alliance members are assumed to have heterogeneous tastes regarding the desired security level. The allies act strategically vis-a-vis one another with regard to security provision, and the alliance a whole acts strategically with respect to the rogue nation, which strategizes in turn. Importantly, this paper investigates how the evolution of public opinion, in the respective countries facing the rogue nation's threat, impacts the proposed mechanism.
|Item Type:||MPRA Paper|
|Original Title:||Changing threat perceptions and the efficient provisioning of international security|
|Keywords:||Alliances; International Institutions; Conflict; Security|
|Subjects:||H - Public Economics > H8 - Miscellaneous Issues > H87 - International Fiscal Issues; International Public Goods
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
|Depositing User:||Rupayan Gupta|
|Date Deposited:||07. Apr 2012 18:55|
|Last Modified:||20. Feb 2013 17:13|
Bruce, N. Defense Expenditures by Countries in Allied & Adversarial Relationships, Defense Economics, 1 (3), 1990, 179-95.
Niou, E. & Tan, G. External Threat and Collective Action, Economic Enquiry, 43 (3), 2005, 519-30.
Gupta, R. Structuring International Institutions for the Efficient Provisioning of Global Security, forthcoming, Public Choice, 2010 (available Online First).
Hartley, K. & T. Sandler (eds.). Handbook of Defense Economics, Vol. 1, Elsevier, 1995a.
Jones, P.R. Inefficiency in the International Defense Alliances and the Economics of Bureaucracy, Defense Economics, 3(2), 1992, 123-40.
Lee, D.R. Free Riding and Paid Riding in the Fight Against Terrorism, American Economic Review, 78 (2), 1988, 22-6.
Lee, D.R. & T. Sandler. On the optimal retaliation against terrorists: The paid rider option, Public Choice, 61 (2), 1989, 141-52.
McGuire, M. Mixed Public-Private benefit & Public Good Supply with Application to the NATO Alliance, Defense Economics, 1 (1), 1990, 17-35.
McGuire, M. & C.H. Groth. A Method of Identifying the Public Good Allocation Process Within a Group, Quarterly Journal of Economics, 100 (Supplement), 1995, 915-34.
Moulin, H.: Cooperative Microeconomics: A Game-Theoretic Introduction, Princeton University Press, 1995.
Murdoch, J.C. & T. Sandler. A Theoretical & Empirical Investigation of NATO, J. of Conflict Resolution, 26 (2), 1982, 237-63.
Murdoch, J.C., Sandler, T. & L. Hansen. An Econometric Technique for Comparing Median Voter and Oligarchy Choice Models of Collective Action: The Case of the NATO Alliance, Review of Economics and Statistics, 73(4), 1991, 624-31.
Olson, M. & R. Zeckhauser. An Economic Theory of Alliances, Review of Economics & Statistics, 48 (3), 1966, 266-79.
Olson, M. & R. Zeckhauser. Collective Goods, Comparative Advantage, and Alliance Efficiency, in R. McKean (ed.) Issues of Defense Economics, NBER, 1967, 25-48.
Sandler, T., Tschirhart, J.T., & J. Cauley. A Theoretical Analysis of Transnational Terrorism, The American Political Science Review, Vol. 77(1), March 1983, 36 - 54.
Sandler, T., & H.E. Lapan. The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets, Synthese, 76(2), 245 - 61.
Sandler, T., & K. Hartley. The economics of defense, Cambridge Univ. Press, 1995b.
Weber, S. & H. Wiesmeth. Economic Models of NATO, Journal of Public Economics,46 (2), 1991, 181-97.
Available Versions of this Item
Changing Threat Perceptions and the Efficient Provisioning of International Security. (deposited 21. Jul 2010 12:45)
- Changing threat perceptions and the efficient provisioning of international security. (deposited 07. Apr 2012 18:55) [Currently Displayed]