Bargaining power and U.S. military aid in the post-cold war era
Journal Title: Security and Defence Quarterly - Year 2021, Vol 35, Issue 3
Abstract
This study examines the effect of bargaining power on the allocation of U.S. military assistance. Conceptualising U.S. military assistance as an aid-for-policy deal, it applies a two-tiered stochastic frontier model to a data sample of the post-Cold War era. It shows that the bargaining effect accounts for a huge variation in U.S. military aid distribution. The volume of U.S. military assistance in equilibrium is lower than the baseline volume by 4% at the mean and by 6% at the median. The donor U.S. extracts a slightly larger portion of the transaction surplus at these central points. However, the game of surplus division is not always about equally strong hagglers as it may first appear. In fact, the quartile values show substantial variance in bargaining performance and, hence, an outcome of surplus division across transactions. The bargaining effect is highly significant in the allocation of U.S. military assistance in the post-Cold War era. The donor U.S enjoys a bargaining advantage at the mean and median, but rich variations are noticeable.
Authors and Affiliations
Yu Wang
Keywords
Related Articles
- EP ID EP705798
- DOI https://doi.org/10.35467/sdq/141351
- Views 127
- Downloads 0
Challenges for the Ukrainian energy industry.
Reform of the energy sector is very important, both for the Ukrainian economy and for the reputation of Ukraine in Europe. Since independence, the energy sector, and especially the gas sector, has been totally in transpa...
Social security as part of the national security system of Bulgaria
Social security and social entrepreneurship are subject to special attention from the European Commission (EC), particularly in recent years. This is due to their potential to find solutions to society’s problems related...
Contemporary challenges in military logistics support
Nowadays, the most important factors that cause global market activity and have a big influence on logistics processes are: globalisation and rapid development of new technologies. In that environment, military logistics...
Introduction to the Special Issue Section: Innovations for chemical, biological, radiological, nuclear + explosive - CBRNe defence
Article about Innovations for chemical, biological, radiological, nuclear + explosive - CBRNe defence azards of a chemical, biological, radiological, and nuclear type (CBRN)
Systemic Operational Design – a study in failed concept
One of the many reasons for the failure of the Israel Defence Forces’ (IDF) in the Second Lebanon War was the concept of Systemic Operational Design (SOD), translated into de facto military doctrine. The story of the ris...