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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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    References listed on IDEAS

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    1. Cameron G. Thies, 2005. "War, Rivalry, and State Building in Latin America," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 451-465, July.
    2. Mario Chac√≥n & Fabio Sanchez Torres, 2020. "El efecto de las transferencias sobre el recaudo fiscal local en Colombia, 2000-2015," Documentos CEDE 18344, Universidad de los Andes, Facultad de Economía, CEDE.
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