Public Choice

, Volume 83, Issue 1–2, pp 173–184 | Cite as

How to pay for the peace? A theoretical framework with references to African countries

  • Jean-Paul Azam


This paper analyses a simple game-theoretic model to highlight the choice of the government between raising its defence expenditures or giving away some “gifts” to his opponents, as a means to defend his position in power. If the government is a Cournot-Nash player, then there is no gift in equilibrium, and any increase in the budget will lead to more inefficient defence expenditures. However, if the government is a Stackelberg-leader, then he will use the “gift” as a tool in his policy for staying in power.


African Country Public Finance Paper Analyse Defence Expenditure Inefficient Defence 
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Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Jean-Paul Azam
    • 1
    • 2
  1. 1.CERDI, University of AuvergneClermont-FerrandFrance
  2. 2.CSAEOxford

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