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Wars and State Capacity
London School of Economics.
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2008 (English)In: Journal of the European Economic Association, ISSN 1542-4766, E-ISSN 1542-4774, Vol. 6, no 2-3, 522-530 p.Article in journal (Refereed) Published
Abstract [en]

The article builds a simple model to investigate how different types of armed conflict shape fiscal capacity: the state's ability to raise revenue from taxes. It starts from the simple observation that external war tends to generate common interests across groups in society, whereas internal, civil war entails deep conflicting interests across groups. Our model predicts that-compared to a society without conflict-civil wars lead to smaller investments in fiscal capacity, whereas prospects of external war generally lead to larger investments. Correlations in international data on conflicts and taxation are, by and large, consistent with these predictions.

Place, publisher, year, edition, pages
2008. Vol. 6, no 2-3, 522-530 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-10400DOI: 10.1162/JEEA.2008.6.2-3.522ISI: 000255691700019OAI: oai:DiVA.org:su-10400DiVA: diva2:176919
Conference
22nd Annual Congress of the European-Economic-Association, Budapest, Hungary, Aug 27-31, 2007
Available from: 2009-01-21 Created: 2009-01-21 Last updated: 2017-12-13Bibliographically approved

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