H. Kammler, NOT FOR SECURITY ONLY - THE DEMAND FOR INTERNATIONAL STATUS AND DEFENSE EXPENDITURE - AN INTRODUCTION, Defence and peace economics, 8(1), 1997, pp. 1-16
The analysis of military expenditure, inside alliances as well as outs
ide, has gained much when the original Olson-Zeckhauser approach was g
eneralized into the joint-product model of alliances as developed by T
odd Sandler and others. This model allowed, as benefits to allies dete
rmining military expenditure, not only deterrence, a pure collective g
ood, but partially collective goods like conventional fighting power a
nd private (country-specific) benefits. The papers in this Special Iss
ue explore the explanatory potential of also considering the demand fo
r positional goods, in particular great-power status, as a determinant
of military expenditure. The ''exploitation of the strong by the weak
'' characterizing NATO until the early 1970s and during the American d
efence buildup of 1980-1985 might also be explained by an informal lea
der-follower bargain between the United States and its allies who trad
ed acceptance of American hegemony for military protection and ''hegem
onic stability'' of the world economy.