eprintid: 1233
rev_number: 20
eprint_status: archive
userid: 18
dir: disk0/00/00/12/33
datestamp: 2012-03-13 12:56:40
lastmod: 2012-09-05 15:37:49
status_changed: 2012-09-05 13:39:09
type: article
metadata_visibility: show
creators_name: Dincecco, Mark
creators_name: Prado, Mauricio
creators_id: m.dincecco@imtlucca.it
creators_id: 
title: Warfare, Fiscal Capacity, and Performance
ispublished: pub
subjects: HA
subjects: HC
subjects: HJ
subjects: JF
divisions: EIC
full_text_status: public
keywords: JEL Classification:  C20; H10; O10; N40; Keywords: Pre-modern wars, Fiscal capacity, Public services, Worker productivity
abstract: We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.

date: 2012-09
date_type: published
publication: Journal of Economic Growth
volume: 17
number: 3
publisher: Springer-Verlag
pagerange: 171-203
id_number: 10.1007/s10887-012-9079-4
refereed: TRUE
issn: 1381-4338
official_url: http://dx.doi.org/10.1007/s10887-012-9079-4
citation:   Dincecco, Mark and Prado, Mauricio  Warfare, Fiscal Capacity, and Performance.  Journal of Economic Growth, 17 (3).  pp. 171-203.  ISSN 1381-4338      (2012)  
document_url: http://eprints.imtlucca.it/1233/1/War%2C%20capacity%2C%20performance%20JEG%20final%2012%20mar%202012.pdf