Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-30T16:04:20.708Z Has data issue: false hasContentIssue false

Estimating Free-Riding Behavior: The StratAM Model

Published online by Cambridge University Press:  04 January 2017

Martin C. Steinwand*
Affiliation:
Department of Political Science, Stony Brook University, Stony Brook, NY 11794 e-mail: [email protected]

Abstract

Spatial statistical methods in political science provide a tool to deal with spatial and other forms of interdependence in observational data. In this article, I derive a statistical model from a game of impure public goods provision. The resulting strategic autoregressive model (StratAM) allows the researcher to systematically explore the sources of free-riding behavior in the provision of public goods. The StratAM model is tightly related to the well-known spatial autoregressive (SAR) model and can be estimated in a maximum likelihood framework. I demonstrate the use of the StratAM model by analyzing free riding in the provision of foreign aid. Indicators of developmental needs and good governance strongly increase free-riding during the 1990s. Free-riding patterns in the 2000s are more similar to Cold War patterns.

Type
Articles
Copyright
Copyright © The Author 2011. Published by Oxford University Press on behalf of the Society for Political Methodology 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, Daron, Johnson, Simon, and Robinson, James. 2003. An African success story: Botswana. In Search for prosperity: Analytical narrative on economic growth, ed. Rodrik, Dani, 80122. Princeton, NJ: Princeton University Press.Google Scholar
Alesina, Alberto, and Weder, Beatrice. 2002. Do corrupt governments receive less foreign aid? American Economic Review 92: 1126–37.CrossRefGoogle Scholar
Alesina, Alberto, and Dollar, David. 2000. Who gives foreign aid to whom and why? Journal of Economic Growth 5: 3363.CrossRefGoogle Scholar
Anselin, Luc. 1988. Spatial econometrics: Methods and models. Dordrecht, Netherlands: Kluwer Academic Publishers.CrossRefGoogle Scholar
Anselin, Luc, Gallo, Julie Le, and Jayet, Hubert. 2008. Spatial panel econometrics. In The econometrics of panel data: Fundamentals and recent developments in theory and practice, ed. Sevestre, Patrick and Mátyás, László, 625–60. New York, NY: Springer.Google Scholar
Barro, Robert J., and Lee, Jong-Wha. 2005. IMF programs: Who is chosen and what are the effects? Journal of Monetary Economics 52: 1245–69.CrossRefGoogle Scholar
Beck, Nathaniel, and Katz, Jonathan N. 1995. What to do (and not to do) with time-series cross-section data. American Political Science Review 89: 634–47.CrossRefGoogle Scholar
Beck, Nathaniel, Gleditsch, Kristian Skrede, and Beardsley, Kyle. 2006. Space is more than geography: Using spatial econometrics in the study of political economy. International Studies Quarterly 50: 2744.CrossRefGoogle Scholar
Berthélemy, Jean-Claude. 2006. Bilateral donors' interest vs. recipients' development motives in aid allocation: Do all donors behave the same? Review of Development Economics 10: 179–94.CrossRefGoogle Scholar
Berthélemy, Jean-Claude, and Tichit, Ariane. 2004. Bilateral donors' aid allocation decisions—A three-dimensional panel analysis. International Review of Economics and Finance 13: 253–74.CrossRefGoogle Scholar
Boutton, Andrew, and Carter, David B. 2010. Carrots for counterterrorism: Security motivations for U. S. foreign aid. Working paper. Pennsylvania State University. http://www.personal.psu.edu/dbc10/aid_terror6.pdf (accessed February 2, 2011).Google Scholar
Burnside, Craig, and Dollar, David. 2000. Aid, policies, and growth. American Economic Review 90: 847–68.CrossRefGoogle Scholar
Carrubba, Clifford J., Yuen, Amy, and Zorn, Christopher. 2007. In defense of comparative statics: Specifying empirical tests of models of strategic interaction. Political Analysis 15: 465.CrossRefGoogle Scholar
Carter, David B., and Stone, Randall W. 2010. U. S. aid disbursement and voting in the United Nations General Assembly. Working paper. Pennsylvania State University. http://www.personal.psu.edu/dbc10/unvote7.pdf (accessed February 2, 2011).Google Scholar
Darmofal, David. 2009. Bayesian spatial survival models for political event processes. American Journal of Political Science 53: 241–57.CrossRefGoogle Scholar
Dollar, David. and Levin, Victoria. 2006. The increasing selectivity of foreign aid, 1984-2003. World Development 34: 2034–46.CrossRefGoogle Scholar
Dreher, Axel. 2004. A public choice perspective of IMF and World Bank lending and conditionality. Public Choice 119: 445–64.CrossRefGoogle Scholar
Dunning, Thad. 2004. Conditioning the effects of aid: Cold War politics, donor credibility, and democracy in Africa. International Organization 58: 409–23.CrossRefGoogle Scholar
Feldman, Lily Gardner. 1999. The principle and practice of ‘reconciliation’ in German foreign policy: Relations with France, Israel, Poland and the Czech Republic. International Affairs 75: 333–56.Google Scholar
Fleck, Robert K., and Kilby, Christopher. 2010. Changing aid regimes? US foreign aid from the Cold War to the war on terror. Journal of Development Economics 91: 185–97.CrossRefGoogle Scholar
Franzese, Robert J., and Hays, Jude C. 2007. Spatial econometric models of cross-sectional interdependence in political science panel and time-series-cross-section data. Political Analysis 15: 140–64.CrossRefGoogle Scholar
Franzese, Robert J., and Hays, Jude C. 2008. Interdependence in comparative politics: Substance, theory empirics, substance. Comparative Political Studies 41: 742–80.CrossRefGoogle Scholar
Fudenberg, Drew, and Tirole, Jean. 1991. Game theory. Cambridge, MA: MIT Press.Google Scholar
Giacomini, Raffaella, and Granger, Clive W. J. 2004. Aggregation of space-time processes. Journal of Econometrics 118: 726.CrossRefGoogle Scholar
Jepma, Catrinus J. 1991. The tying of aid. Paris, France: OECD Development Centre.Google Scholar
Kastellec, Jonathan P., and Leoni, Eduardo L. 2007. Using graphs instead of tables in political science. Perspectives on Politics 5: 755–71.CrossRefGoogle Scholar
King, Gary, Tomz, Michael, and Wittenberg, Jason. 2000. Making the most of statistical analysis: Improving interpretation and presentation. American Journal of Political Science 44: 341–55.CrossRefGoogle Scholar
Knack, Stephen, and Keefer, Phillip. 1995. Institutions and economic performance: Cross-country tests using alternative institutional measures. Economics and Politics 7: 942–63.CrossRefGoogle Scholar
Lancaster, Carol. 2000. Redesigning foreign aid. Foreign Affairs 79: 7488.CrossRefGoogle Scholar
Lancaster, Carol. 2007. Foreign aid: Diplomacy, development, domestic politics. Chicago, IL: University of Chicago Press.Google Scholar
LeSage, James P. 2000. Bayesian estimation of limited dependent variable spatial autoregressive models. Geographical Analysis 32: 1935.CrossRefGoogle Scholar
LeSage, James P., and Kelley Pace, R. 2009. Introduction to spatial econometrics. Boca Raton, FL: Chapman & Hall/CRC.CrossRefGoogle Scholar
Mearsheimer, John J., and Walt, Stephen M. 2006. The Israel lobby and US foreign policy. Middle East Policy 13: 2987.CrossRefGoogle Scholar
Morgenthau, Hans. 1962. A political theory of foreign aid. American Political Science Review 56: 301–9.CrossRefGoogle Scholar
Murdoch, James C., Sandler, Todd, and Sargent, Keith. 1997. A tale of two collectives: Sulphur versus nitrogen oxides emission reduction in Europe. Economica 64: 281301.CrossRefGoogle Scholar
Neumayer, Eric, and Plümper, Thomas. 2010. Spatial effects in dyadic data. International Organization 64: 145–66.CrossRefGoogle Scholar
Oatley, Thomas, and Yackee, Jason. 2004. American interests and IMF lending. International Politics 41: 415–29.CrossRefGoogle Scholar
OECD. 2009. International development statistics on CD ROM. Paris, France: OECD Publishing.Google Scholar
Olson, Mancur Jr., and Zeckhauser, Richard. 1966. An economic theory of alliances. Review of Economics and Statistics 48: 266–79.CrossRefGoogle Scholar
Plümper, Thomas, and Neumayer, Eric. 2010. Model specification in the analysis of spatial dependence. European Journal of Political Research 49: 418–42.CrossRefGoogle Scholar
Santiso, Carlos. 2001. Good governance and aid effectiveness: The World Bank and conditionality. Georgetown Public Policy Review 7: 122.Google Scholar
Schraeder, Peter J., Hook, Steven W., and Taylor, Bruce. 1998. Clarifying the foreign aid puzzle: A comparison of American, Japanese, French, and Swedish aid flows. World Politics 50: 294323.CrossRefGoogle Scholar
Signorino, Curtis. 1999. Strategic interaction and the statistical analysis of international conflict. American Political Science Review 93: 279–98.CrossRefGoogle Scholar
Signorino, Curtis S. 2003. Structure and uncertainty in discrete choice models. Political Analysis 11: 316–44.CrossRefGoogle Scholar
Signorino, Curtis S., and Yilmaz, Kuzey. 2003. Strategic misspecification in regression models. American Journal of Political Science 47: 551–66.CrossRefGoogle Scholar
Stone, Randall W. 2004. The political economy of IMF lending in Africa. American Political Science Review 98: 577–91.CrossRefGoogle Scholar
The World Bank Group. 2009. World development indicators online. http://databank.worldbank.org/ddp/home.do?Step=12&id=4&CNO=2 (accessed 6 April 2009).Google Scholar
Varian, Hal R. 1992. Microeconomic analysis. 3rd ed. New York: Norton.Google Scholar