TY - JOUR
T1 - The creation of effective states in the OECD since 1870
T2 - The role of inequality
AU - Madsen, Jakob B.
AU - Wang, Cong
AU - Steiner, Bodo
PY - 2017/12/1
Y1 - 2017/12/1
N2 - Research shows that state capacity is crucial for economic development, yet the impact of inequality on state capacity is not well understood. This paper examines the impact of income inequality on three key dimensions of state capacity, namely legal, fiscal and collective capacity using annual data for a core of 21 OECD countries over the period 1870-2013. We find that the marked reduction in inequality over most of the last century starting from 1916 was pivotal to the significant improvements in legal, fiscal and collective capacity in the OECD countries over the same period.
AB - Research shows that state capacity is crucial for economic development, yet the impact of inequality on state capacity is not well understood. This paper examines the impact of income inequality on three key dimensions of state capacity, namely legal, fiscal and collective capacity using annual data for a core of 21 OECD countries over the period 1870-2013. We find that the marked reduction in inequality over most of the last century starting from 1916 was pivotal to the significant improvements in legal, fiscal and collective capacity in the OECD countries over the same period.
UR - http://www.scopus.com/inward/record.url?scp=85017457142&partnerID=8YFLogxK
U2 - 10.1016/j.ejpoleco.2017.03.007
DO - 10.1016/j.ejpoleco.2017.03.007
M3 - Article
AN - SCOPUS:85017457142
SN - 0176-2680
VL - 50
SP - 106
EP - 121
JO - European Journal of Political Economy
JF - European Journal of Political Economy
ER -
