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- Title
The Political Economy of Scandinavian Neutrality.
- Authors
Murdoch, James C.; Sandler, Todd
- Abstract
This article examines whether three of the neutral nations of Europe (i.e., Sweden, Switzerland, and Finland) have adhered to their choice of armed neutrality by being self-reliant on their own defenses. Using a joint product model, we specify a reduced-form equation for a nation's demand for military expenditures. Our empirical estimates of these demands suggest that Sweden free rode on NATO after institution of the doctrine of flexible response; however, the other two neutral nations have been self-reliant throughout the period 1957-82. In the case of Sweden, the traditional assumption of no interalliance spillovers does not hold. With pooled data, cross-equation restrictions highlight the essential differences between NATO and nonaligned Scandinavian countries.
- Subjects
EUROPE; NATIONAL security; MILITARY planning; ECONOMIC policy
- Publication
Scandinavian Journal of Economics, 1986, Vol 88, Issue 4, p583
- ISSN
0347-0520
- Publication type
Article
- DOI
10.2307/3440432