This paper analyses the decentralized production of defence services when cross-border spillin effects are at work. Citizens would welcome an increase in defence production, but this outcome might be achieved only with a centralized production of defence services. A temporary pragmatic solution would consist in assigning appropriate minimum defence spending targets.
GUYOT, M. and VRANCEANU, R. (2001). European Defence: The Cost of Partial Integration. Defence and Peace Economics, pp. 157-174.