Besley, Timothy, Ilzetzki, Ethan and Persson, Torsten (2010) Weak states and steady states: the dynamics of fiscal capacity. In: The Political Economy of Economic Development, 2010-04-30 - 2010-05-01, Manresa, Spain. (Submitted)
Full text not available from this repository.Abstract
Investments in fiscal capacity — economic institutions for tax compliance — are an important feature of economic development. This paper develops a dynamic model to study such investments and their evolution over time. We contrast a social planner’s investment path with paths where political constraints are important. Three types of states emerge in the long run: (1) a common-interest state where public resources are devoted to public goods, (2) a redistributive state where additional fiscal capacity is used for transfers, and (3) a weak state with no transfers and a low level of public goods provision. The paper characterizes the conditions under which each possibility emerges and comparative statics wihin each regime.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Official URL: | http://www.crei.cat/ |
| Additional Information: | © 2010 The Authors |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Date Deposited: | 04 Apr 2011 13:27 |
| Last Modified: | 15 Sep 2023 08:27 |
| URI: | http://eprints.lse.ac.uk/id/eprint/33781 |
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