Decentralized coercion and self-restraint in provincial taxation: The Ottoman Empire, 15th-16th centuries
For technological reasons the central administration of a state may want to entrust to provincial delegates the dual tasks of extracting provincial resources and converting them into coercive force. This article establishes that the coercive threat that the delegates pose may make the administration cap the amount they extract. The cap will cause the state not to internalize the marginal benefits of provincial economic development. It will also induce inefficient economic policies. The identified institutional setup is consistent with the political regime, economic policy, and legislation of the Ottoman Empire during its classical age.
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.:
- Ames, Edward & Rapp, Richard T., 1977. "The Birth and Death of Taxes: A Hypothesis," The Journal of Economic History, Cambridge University Press, vol. 37(01), pages 161-178, March.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
661465000000000387, David K. Levine.
- Barro, Robert J., 1990.
"Government Spending in a Simple Model of Endogeneous Growth,"
3451296, Harvard University Department of Economics.
- Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October.
- Robert J. Barro, 1988. "Government Spending in a Simple Model of Endogenous Growth," NBER Working Papers 2588, National Bureau of Economic Research, Inc.
- Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
- James Conklin, 1998. "The Theory of Sovereign Debt and Spain under Philip II," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 483-513, June.
- Greif, Avner & Milgrom, Paul & Weingast, Barry R, 1994. "Coordination, Commitment, and Enforcement: The Case of the Merchant Guild," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 745-76, August.
- Anonymous, 1976. "Introduction [Health]," Canadian Public Policy, University of Toronto Press, vol. 2(2), pages 141-143, Spring.
- Merlo, Antonio & Wilson, Charles A, 1995. "A Stochastic Model of Sequential Bargaining with Complete Information," Econometrica, Econometric Society, vol. 63(2), pages 371-99, March.
- Anonymous, 1976. "Introduction [The 1977 Bank Act]," Canadian Public Policy, University of Toronto Press, vol. 2(3), pages 368-369, Summer.
- Stergios Skaperdas, 1996.
"Contest success functions (*),"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
- Anonymous, 1976. "Introduction [Can Governments Govern?]," Canadian Public Policy, University of Toronto Press, vol. 2(4), pages 535-537, Autumn.
- Anonymous, 1976. "Introduction [Santé]," Canadian Public Policy, University of Toronto Press, vol. 2(2), pages 144-146, Spring.
- Timur Kuran, 2004. "Why the Middle East is Economically Underdeveloped: Historical Mechanisms of Institutional Stagnation," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 71-90, Summer.
- Greif, Avner, 1994. "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 912-50, October.
- Kuran, Timur, 2003. "The Islamic Commercial Crisis: Institutional Roots of Economic Underdevelopment in the Middle East," The Journal of Economic History, Cambridge University Press, vol. 63(02), pages 414-446, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:71:y:2009:i:3:p:690-703. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.