This paper uses an output-oriented stochastic distance function to compute defense contractors' technical efficiency as a measure of performance. Then, nesting a market structure and conduct equation into the frontier, we identify firm and industry factors that affect the observed inefficiency...

This paper presents empirical results on the export performance of Spanish defense contractors. The objective is threefold. First, we briefly describe the export profile of the Spanish defense industry at the firm level. Second, in light of some results on the determinants of firm-level export...

This paper examines the possible free-riding behaviour followed by Spain since the country joined NATO in 1982. Using a joint product model, we specify a reduced-form equation for the Spanish demand for military expenditure during the period 1977-1997. Our empirical estimates suggest that Spain...