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Geography, Transparency and Institutions

Author

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  • Mayshar, Joram
  • Moav, Omer
  • Neeman, Zvika

Abstract

We propose a theory by which geographic variations in the transparency of the production process explain cross-regional differences in the scale of the state, in its hierarchical structure, and in property rights over land. The key linkage between geography and these institutions, we posit, is via the effect of transparency on the state's extractive capacity. We apply our theory to explain institutional differences between ancient Egypt and ancient Upper and Lower Mesopotamia. We also discuss the relevance of our theory to analyses of the deep rooted factors affecting economic development and the growth of taxation in the modern age.

Suggested Citation

  • Mayshar, Joram & Moav, Omer & Neeman, Zvika, 2013. "Geography, Transparency and Institutions," CEPR Discussion Papers 9625, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9625
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    References listed on IDEAS

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    2. Mayshary, Joram & Moav, Omer & Neeman, Zvika & Pascali, Luigi, 2015. "Cereals Appropriability and Hierarchy," CAGE Online Working Paper Series 238, Competitive Advantage in the Global Economy (CAGE).
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    Cited by:

    1. Matranga, Andrea, 2017. "The Ant and the Grasshopper: Seasonality and the Invention of Agriculture," MPRA Paper 76626, University Library of Munich, Germany.
    2. Ernesto Dal Bó & Pablo Hernández & Sebastián Mazzuca, 2015. "The Paradox of Civilization: Pre-Institutional Sources of Security and Prosperity," NBER Working Papers 21829, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Geography; Institutions; Land Tenure; State Capacity; State Concentration; Transparency;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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