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State capacity, conflict, and development

Besley, Timothy and Persson, Torsten (2010) State capacity, conflict, and development. Econometrica, 78 (1). pp. 1-34. ISSN 0012-9682

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Abstract

The absence of state capacities to raise revenue and to support markets is a key factor in explaining the persistence of weak states. This paper reports on an ongoing project to investigate the incentive to invest in such capacities. The paper sets out a simple analytical structure in which state capacities are modeled as forward looking investments by government. The approach highlights some determinants of state building including the risk of external or internal conflict, the degree of political instability, and dependence on natural resources. Throughout, we link these state capacity investments to patterns of development and growth.

Item Type: Article
Official URL: http://www.wiley.com/bw/journal.asp?ref=0012-9682
Additional Information: © 2010 The Econometric Society
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
J Political Science > JF Political institutions (General)
Journal of Economic Literature Classification System: H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
O - Economic Development, Technological Change, and Growth > O1 - Economic Development
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 30 Mar 2011 14:24
URL: http://eprints.lse.ac.uk/33761/

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