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The Economic Origins of Government

Author

Listed:
  • Robert C. Allen
  • Mattia C. Bertazzini
  • Leander Heldring

Abstract

We test between cooperative and extractive theories of the origins of government. We use river shifts in southern Iraq as a natural experiment, in a new archeological panel dataset. A shift away creates a local demand for a government to coordinate because private river irrigation needs to be replaced with public canals. It disincentivizes local extraction as land is no longer productive without irrigation. Consistent with a cooperative theory of government, a river shift away led to state formation, canal construction, and the payment of tribute. We argue that the first governments coordinated between extended households which implemented public good provision.

Suggested Citation

  • Robert C. Allen & Mattia C. Bertazzini & Leander Heldring, 2023. "The Economic Origins of Government," American Economic Review, American Economic Association, vol. 113(10), pages 2507-2545, October.
    • Handle: RePEc:aea:aecrev:v:113:y:2023:i:10:p:2507-45
    DOI: 10.1257/aer.20201919
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    Citations

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    Cited by:

    1. Esteban Muñoz-Sobrado & Amedeo Piolatto & Antoine Zerbini & Federica Braccioli, 2024. "The Taxing Challenges of the State: Unveiling the Role of Fiscal & Administrative Capacity in Development," Working Papers 1432, Barcelona School of Economics.
    2. Gampe, Anja & Hubmann, Georg & Kapeller, Jakob, 2024. "Sozialer Fortschritt in offenen Gesellschaften des 21. Jahrhunderts: Unrealistische Utopie oder notwendige Möglichkeit?," ifso working paper series 31, University of Duisburg-Essen, Institute for Socioeconomics (ifso).

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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