SDI, NATO, and the Social Composition Function

Abstract

The strategic defense initiative (SDI) intends to renew the leadership of the USA on the western alliance. The initiative takes place in a period when a summation technology prevails for the aggregation of contributions of NATO allies. We investigate if SDI induces a shift in Hirshleifer’s social composition function. Panel data tests over the period 1970–1990 do not confirm any break toward a best-shot aggregator. SDI does not alter the core of deterrence. It is indeed a public good at the US level but not at the NATO level, where, it is one of the joint products of the alliance. We also investigate the lessons to be drawn for the current debates on ballistic defense.

Keywords:

• International public goods
• Social composition function
• International organizations
• Alliances
• Best-shot
• NATO

JEL classification:

• D74
• H56
• H87

Acknowledgments

Earlier versions of this study have been presented at the 2012 world congress of the Public Choice Societies, Miami and at the GSHBC seminar of the University of Jena, 2011. We thank all participants to those events who provided us with comments, especially Andreas Freytag and Sebastian von Engelhardt. We also thank an anonymous referee for his/her suggested revisions. The usual disclaimer applies.