TY - JOUR
AU - Persson, Torsten
AB - AbstractThe 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.
TI - Wars and State Capacity
JF - Journal of the European Economic Association
DO - 10.1162/JEEA.2008.6.2-3.522
DA - 2008-05-01
UR - https://www.deepdyve.com/lp/oxford-university-press/wars-and-state-capacity-AzoILhi5j0
SP - 522
EP - 530
VL - 6
IS - 2-3
DP - DeepDyve
ER -