Different Paths to the Modern State in Europe: The interaction between domestic political economy and interstate competition
Theoretical work on state formation and capacity has focused mostly on early modern Europe and on the experience of western European states during this period. While a number of European states monopolized domestic tax collection and achieved gains in state capacity during the early modern era, for others revenues stagnated or even declined, and these variations motivated alternative hypotheses for determinants of fiscal and state capacity. In this study we test the basic hypotheses in the existing literature making use of the large date set we have compiled for all of the leading states across the continent. We find strong empirical support for two prevailing threads in the literature, arguing respectively that interstate wars and changes in economic structure towards an urbanized economy had positive fiscal impact. Regarding the main point of contention in the theoretical literature, whether it was representative or authoritarian political regimes that facilitated the gains in fiscal capacity, we do not find conclusive evidence that one performed better than the other. Instead, the empirical evidence we have gathered lends supports to the hypothesis that when under pressure of war, the fiscal performance of representative regimes was better in the more urbanized-commercial economies and the fiscal performance of authoritarian regimes was better in rural-agrarian economies.
|Date of creation:||30 May 2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www2.lse.ac.uk/europeanInstitute|
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.:
- Peter Murrell, 2009. "Design and Evolution in Institutional Development: The Insignificance of the English Bill of Rights," Electronic Working Papers 09-001, University of Maryland, Department of Economics.
- 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.
- Robert H. Bates & Avner Greif & Margaret Levi & Jean-Laurent Rosenthal, 1998. "Analytic Narratives," Economics Books, Princeton University Press, edition 1, volume 1, number 6355.
- Bean, Richard, 1973. "War and the Birth of the Nation State," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 203-221, March.
- Dincecco, Mark, 2009. "Fiscal Centralization, Limited Government, and Public Revenues in Europe, 1650–1913," The Journal of Economic History, Cambridge University Press, vol. 69(01), pages 48-103, March.
- zmucur, S leyman & Pamuk, Sevket, 2002. "Real Wages And Standards Of Living In The Ottoman Empire, 1489 1914," The Journal of Economic History, Cambridge University Press, vol. 62(02), pages 293-321, June.
- 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.
- K. Kývanç Karaman & Þevket Pamuk, 2009. "Ottoman State Finances in Comparative European Perspective, 1500-1914," Working Papers 2009/05, Bogazici University, Department of Economics.
- Volckart, Oliver, 2000. "State Building by Bargaining for Monopoly Rents," Kyklos, Wiley Blackwell, vol. 53(3), pages 265-91.
- Van Zanden, Jan Luiten & Prak, Maarten, 2006. "Towards an economic interpretation of citizenship: The Dutch Republic between medieval communes and modern nation-states," European Review of Economic History, Cambridge University Press, vol. 10(02), pages 111-145, August.
- Acemoglu, Daron, 2005.
"Politics and economics in weak and strong states,"
Journal of Monetary Economics,
Elsevier, vol. 52(7), pages 1199-1226, October.
- Masaki Nakabayashi, 2008. "Rise of the Japanese fiscal state," Discussion Papers in Economics and Business 08-12, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Cullen S Hendrix, 2010. "Measuring state capacity: Theoretical and empirical implications for the study of civil conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(3), pages 273-285, May.
- Karaman, Kamil KIvanç, 2009. "Decentralized coercion and self-restraint in provincial taxation: The Ottoman Empire, 15th-16th centuries," Journal of Economic Behavior & Organization, Elsevier, vol. 71(3), pages 690-703, September.
- Beck, Nathaniel & Katz, Jonathan N., . "Modeling dynamics in time-series-cross-section political economy data," Working Papers 1304, California Institute of Technology, Division of the Humanities and Social Sciences.
- Jörg Baten & Jan Luiten van Zanden, 2007.
"Book production and the onset of modern economic growth,"
Economics Working Papers
1030, Department of Economics and Business, Universitat Pompeu Fabra.
- Joerg Baten & Jan Zanden, 2008. "Book production and the onset of modern economic growth," Journal of Economic Growth, Springer, vol. 13(3), pages 217-235, September.
- repec:tpr:intorg:v:49:y:1995:i:3:p:379-414 is not listed on IDEAS
- Lachmann, Richard, 2000. "Capitalists in Spite of Themselves: Elite Conflict and Economic Transitions in Early Modern Europe," OUP Catalogue, Oxford University Press, number 9780195075687, March.
- Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(03), pages 379-414, June.
- Bates, Robert H. & Lien, Da-Hsiang Donald., 1985. "A Note on Taxation, Development and Representative Government," Working Papers 567, California Institute of Technology, Division of the Humanities and Social Sciences.
- Lvarez-Nogal, Carlos & Prados De La Escosura, Leandro, 2007. "The decline of Spain (1500 1850): conjectural estimates," European Review of Economic History, Cambridge University Press, vol. 11(03), pages 319-366, December.
- Allen, Robert C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War," Explorations in Economic History, Elsevier, vol. 38(4), pages 411-447, October.
When requesting a correction, please mention this item's handle: RePEc:erp:leqsxx:p0037. 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: (Katjana Gattermann)
If references are entirely missing, you can add them using this form.