State capacity, reciprocity and the social contract

Besley, Timothy ORCID: 0000-0002-8923-6372 (2020) State capacity, reciprocity and the social contract. Econometrica, 88 (4). 1307 - 1335. ISSN 0012-9682

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Abstract

This paper explores the role of civic culture in expanding fiscal capacity by developing a model based on reciprocal obligations: citizens pay their taxes and the state provides public goods. Civic culture evolves over time according to the relative payoff of civic‐minded and materialist citizens. A strong civic culture manifests itself as high tax revenues sustained by high levels of voluntary tax compliance and provision of public goods. This captures the idea of government as a reciprocal social contract between the state and its citizens. The paper highlights the role of political institutions and common interests in the emergence of civic culture.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/14680262
Additional Information:	© 2020 The Econometric Society
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	17 Dec 2019 17:24
Last Modified:	10 Mar 2025 22:09
URI:	http://eprints.lse.ac.uk/id/eprint/102939

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