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Wars, Taxation and Representation: Evidence from Five Centuries of German History

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  • Pascali, Luigi
  • Becker, Sascha O.
  • Ferrara, Andreas
  • Melander, Eric

Abstract

We provide causal evidence for the role of conflicts in the development of representative institutions in Europe. Using novel data on the universe of German cities between 1250 and 1710, we show that involvement in wars resulted in city councils that were larger, had a higher probability of being elected by citizens, and a higher probability of guild representation. Additionally, conflicts led to a substantial long-term increase in local fiscal and spending capacity. This effect persisted well after the end of the conflicts: temporary war taxes were transformed into permanent sophisticated systems of taxation, while public spending was re-directed from military to civilian spending. We use the gender of the firstborn child of the best-connected local noble to instrument for conflict: a firstborn daughter increases the likelihood of conflict relative to a firstborn son.

Suggested Citation

  • Pascali, Luigi & Becker, Sascha O. & Ferrara, Andreas & Melander, Eric, 2020. "Wars, Taxation and Representation: Evidence from Five Centuries of German History," CEPR Discussion Papers 15601, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15601
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    References listed on IDEAS

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    7. Rubin,Jared, 2017. "Rulers, Religion, and Riches," Cambridge Books, Cambridge University Press, number 9781108400053, January.
    8. Stanley L. Engerman & Kenneth L. Sokoloff, 1994. "Factor Endowments: Institutions, and Differential Paths of Growth Among New World Economies: A View from Economic Historians of the United States," NBER Historical Working Papers 0066, National Bureau of Economic Research, Inc.
    9. de Mesquita, Bruce Bueno & Siverson, Randolph M., 1995. "War and the Survival of Political Leaders: A Comparative Study of Regime Types and Political Accountability," American Political Science Review, Cambridge University Press, vol. 89(4), pages 841-855, December.
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    Cited by:

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    2. Michel Serafinelli & Guido Tabellini, 2022. "Creativity over time and space," Journal of Economic Growth, Springer, vol. 27(1), pages 1-43, March.

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    More about this item

    Keywords

    Wars; Institutions; Medieval constitutionalism; Fiscal capacity;
    All these keywords.

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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