In the last decade, European defense has been submitted to impressive changes. Military alliances between the EU member countries have strengthened, and an European defense industrial base is being built up. But in a paradoxical way, European countries look today less capable to cope with important military crisis, and their defense budgets are plunging. The paper proposes an explanation for this paradox, considering the case of the decentralized production of a public good with cross-border spillin effects.
GUYOT, M. and VRANCEANU, R. (1999). La réduction des budgets de la défense en Europe : économie budgétaire ou concurrence budgétaire ? ESSEC Business School.