This paper revisits the NATO burden sharing debate with particular emphasis on the use of non-parametric tests that measure the equality of relative benefits and burdens. While the joint product model makes a compelling case for the equality of benefits and burdens in NATO after 1967 (as a consequence of a change in doctrine) the empirical validation of the model is not robust when using non-parametric methods. The lack of knowledge of each ally's utility function, as well as the fact that an ally may have different benefits other than the protection of its industrial base, exposed border and population to consider render the test less robust, as shown in this study. Sensitivity analysis such as the one employed in this paper should be a standard procedure when devising new proxy measures and tests for burden sharing in NATO.Burden sharing, Joint product model, NATO, Public goods,

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This paper presents an analysis of the determinants of the demand for Canadian military expenditures through the estimation of a demand for defence expenditures model for the time period 1952-2001 using, among others, the auto-regressive distributed lag approach to cointegration (ARDL) to estimate and test cointegration and long run relationships. The findings suggest that Canadian defence spending is determined by NATO's (Europe) defence spending, that of the US to a lesser extent, relative price effects and opportunity cost considerations. In light of the fact that Canada's national, foreign and defence interests are tied to international organizations and bilateral arrangements, the results are not surprising.ARDL models, Joint product model, NATO, Relative price effects, Demand models,

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