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The fiscal impact of peace: Evidence from the PDET municipalities in Colombia

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  • Mario L. Chacón

Abstract

Can negotiated peace settlements promote fiscal capacity in post-conflict countries? We explore this question in the context of the 2016 peace agreement in Colombia, after which more than 6,000 insurgents collectively demobilized and a series of peace zones was created. Leveraging the uneven implementation of the peace agreement programmes, we estimate their impact on fiscal outcomes using a 'difference-in-discontinuities' design. We find that municipalities selected to be recipients of programmes increased their local revenues compared to similar neighbouring non-eligible municipalities.

Suggested Citation

  • Mario L. Chacón, 2025. "The fiscal impact of peace: Evidence from the PDET municipalities in Colombia," WIDER Working Paper Series wp-2025-100, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-100
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