Advanced Search
MyIDEAS: Login to save this paper or follow this series

Warfare, Fiscal Capacity, and Performance

Contents:

Author Info

  • Dincecco, Mark
  • Prado, Mauricio

Abstract

We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/39264/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39264.

as in new window
Length:
Date of creation: 12 Mar 2012
Date of revision:
Handle: RePEc:pra:mprapa:39264

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: pre-modern wars; fiscal capacity; public services; worker productivity;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(1), pages 83-116, February.
  2. Nathan Nunn, 2009. "The Importance of History for Economic Development," Annual Review of Economics, Annual Reviews, Annual Reviews, vol. 1(1), pages 65-92, 05.
  3. Quamrul Ashraf & Oded Galor, 2011. "The "Out of Africa" Hypothesis, Human Genetic Diversity, and Comparative Economic Development," NBER Working Papers 17216, National Bureau of Economic Research, Inc.
  4. Galor, Oded & Moav, Omer & Vollrath, Dietrich, 2008. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6751, C.E.P.R. Discussion Papers.
  5. Nunn, Nathan, 2007. "The Long-Term Effects of Africa's Slave Trades," MPRA Paper 4134, University Library of Munich, Germany.
  6. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 7(3), pages 207-227, November.
  7. Bockstette, Valerie & Chanda, Areendam & Putterman, Louis, 2002. " States and Markets: The Advantage of an Early Start," Journal of Economic Growth, Springer, Springer, vol. 7(4), pages 347-69, December.
  8. Diego A. Comin & William Easterly & Erick Gong, 2008. "Was the Wealth of Nations Determined in 1000 B.C.?," Harvard Business School Working Papers, Harvard Business School 09-052, Harvard Business School.
  9. Areendam Chanda & Louis Putterman, 2004. "Early Starts, Reversals and Catchup in The Process of Economic Development," Development and Comp Systems 0408016, EconWPA.
  10. Daron Acemoglu & Davide Cantoni & Simon Johnson & James A. Robinson, 2011. "The Consequences of Radical Reform: The French Revolution," American Economic Review, American Economic Association, American Economic Association, vol. 101(7), pages 3286-3307, December.
  11. Oded Galor & Omer Moav & Dietrich Vollrath, 2005. "Land Inequality and the Emergence of Human Capital Promoting Institutions," Development and Comp Systems 0502018, EconWPA.
  12. Persson, Torsten & Tabellini , Guido, 1997. "Political Economics and Macroeconomic Policy," Seminar Papers, Stockholm University, Institute for International Economic Studies 630, Stockholm University, Institute for International Economic Studies.
  13. Quamrul Ashraf & Oded Galor, 2010. "Dynamics and Stagnation in the Malthusian Epoch," Department of Economics Working Papers, Department of Economics, Williams College 2010-01, Department of Economics, Williams College, revised Jul 2010.
  14. Galor, Oded & Weil, David, 1999. "From Malthusian Stagnation to Modern Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2082, C.E.P.R. Discussion Papers.
  15. Ashraf, Quamrul & Galor, Oded, 2008. "Human Genetic Diversity and Comparative Economic Development," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6824, C.E.P.R. Discussion Papers.
  16. repec:cup:cbooks:9780521821759 is not listed on IDEAS
  17. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  18. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 379-399, June.
  19. Cox, Gary W, 2011. "War, Moral Hazard, and Ministerial Responsibility: England After the Glorious Revolution," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 71(01), pages 133-161, March.
  20. Daron Acemoglu & Simon Johnson & James Robinson, 2005. "The Rise of Europe: Atlantic Trade, Institutional Change, and Economic Growth," American Economic Review, American Economic Association, American Economic Association, vol. 95(3), pages 546-579, June.
  21. Scheve, Kenneth & Stasavage, David, 2010. "The Conscription of Wealth: Mass Warfare and the Demand for Progressive Taxation," International Organization, Cambridge University Press, Cambridge University Press, vol. 64(04), pages 529-561, October.
  22. Timothy Besley & Torsten Persson, 2009. "The origins of state capacity: property rights, taxation and politics," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33768, London School of Economics and Political Science, LSE Library.
  23. Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2011. "Emergence And Persistence Of Inefficient States," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 9(2), pages 177-208, 04.
  24. Dincecco,Mark, 2013. "Political Transformations and Public Finances," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9781107617759.
  25. James R. Hines Jr. & Lawrence H. Summers, 2009. "How Globalization Affects Tax Design," NBER Chapters, in: Tax Policy and the Economy, Volume 23, pages 123-157 National Bureau of Economic Research, Inc.
  26. Rodrik, Dani, 1996. "Why do More Open Economies Have Bigger Governments?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1388, C.E.P.R. Discussion Papers.
  27. Dincecco, Mark & Federico, Giovanni & Vindigni, Andrea, 2011. "Warfare, Taxation, and Political Change: Evidence from the Italian Risorgimento," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 71(04), pages 887-914, December.
  28. Dincecco, Mark, 2009. "Fiscal Centralization, Limited Government, and Public Revenues in Europe, 1650–1913," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 69(01), pages 48-103, March.
  29. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," NBER Working Papers 10568, National Bureau of Economic Research, Inc.
  30. Patricia Beeson & Tara Watson & Lara Shore-Sheppard, 2010. "Local Fiscal Policies and Urban Wage Structures," Department of Economics Working Papers, Department of Economics, Williams College 2010-05, Department of Economics, Williams College.
  31. Niall Ferguson, 2006. "Political risk and the international bond market between the 1848 revolution and the outbreak of the First World War -super-1," Economic History Review, Economic History Society, Economic History Society, vol. 59(1), pages 70-112, 02.
  32. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2004. "Alfred Marshall Lecture: Kleptocracy and Divide-and-Rule: A Model of Personal Rule," Journal of the European Economic Association, MIT Press, MIT Press, vol. 2(2-3), pages 162-192, 04/05.
  33. Hoffman, Philip T., 2012. "Why Was It Europeans Who Conquered the World?," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 72(03), pages 601-633, September.
  34. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "Cultural Biases in Economic Exchange," NBER Working Papers 11005, National Bureau of Economic Research, Inc.
  35. Persson, Torsten & Tabellini, Guido, 1999. "Political Economics and Public Finance," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2235, C.E.P.R. Discussion Papers.
  36. Lee Ohanian & Andrea Raffo & Richard Rogerson, 2006. "Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004," NBER Working Papers 12786, National Bureau of Economic Research, Inc.
  37. De Long, J Bradford & Shleifer, Andrei, 1993. "Princes and Merchants: European City Growth before the Industrial Revolution," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 36(2), pages 671-702, October.
  38. Timothy G. Conley & Christian B. Hansen & Peter E. Rossi, 2012. "Plausibly Exogenous," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 260-272, February.
  39. Acemoglu, Daron, 2005. "Politics and economics in weak and strong states," Journal of Monetary Economics, Elsevier, Elsevier, vol. 52(7), pages 1199-1226, October.
  40. Aidt, Toke S. & Jensen, Peter S., 2009. "The taxman tools up: An event history study of the introduction of the personal income tax," Journal of Public Economics, Elsevier, Elsevier, vol. 93(1-2), pages 160-175, February.
  41. Timothy Besley & Torsten Persson, 2008. "Wars and State Capacity," Journal of the European Economic Association, MIT Press, MIT Press, vol. 6(2-3), pages 522-530, 04-05.
  42. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 806-828, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Cantoni, Davide & Yuchtman, Noam, 2013. "The political economy of educational content and development: Lessons from history," Journal of Development Economics, Elsevier, Elsevier, vol. 104(C), pages 233-244.
  2. Baskaran, Thushyanthan & Bigsten, Arne, 2013. "Fiscal Capacity and the Quality of Government in Sub-Saharan Africa," World Development, Elsevier, Elsevier, vol. 45(C), pages 92-107.
  3. Lagerlöf, Nils-Petter, 2014. "Population, technology and fragmentation: The European miracle revisited," Journal of Development Economics, Elsevier, Elsevier, vol. 108(C), pages 87-105.
  4. Cingolani, Luciana & Thomsson, Kaj & de Crombrugghe, Denis, 2013. "Minding Weber more than ever? The impacts of State Capacity and Bureaucratic Autonomy on development goals," MERIT Working Papers 052, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. James Fenske, 2014. "Ecology, Trade, And States In Pre-Colonial Africa," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 12(3), pages 612-640, 06.
  6. Dincecco, Mark & Katz, Gabriel, 2012. "State Capacity and Long-Run Performance," MPRA Paper 38299, University Library of Munich, Germany.
  7. Timothy Besley & Torsten Persson, 2013. "Taxation and Development," STICERD - Economic Organisation and Public Policy Discussion Papers Series, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE 41, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  8. Cingolani, Luciana, 2013. "The State of State Capacity: a review of concepts, evidence and measures," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  9. Toke Aidt & Peter Jensen, 2013. "Democratization and the size of government: evidence from the long 19th century," Public Choice, Springer, Springer, vol. 157(3), pages 511-542, December.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39264. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.