The creation of effective states in the OECD since 1870: The role of inequality

Jakob B. Madsen; Cong Wang; Bodo Steiner

doi:10.1016/j.ejpoleco.2017.03.007

The creation of effective states in the OECD since 1870: The role of inequality

Jakob B. Madsen^*
, Cong Wang
, Bodo Steiner

^*Corresponding author for this work

Bond Business School

Research output: Contribution to journal › Article › Research › peer-review

14 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	106-121
Number of pages	16
Journal	European Journal of Political Economy
Volume	50
Early online date	20 Mar 2017
DOIs	https://doi.org/10.1016/j.ejpoleco.2017.03.007
Publication status	Published - 1 Dec 2017

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities

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10.1016/j.ejpoleco.2017.03.007

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abstract = "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.",

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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.

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The creation of effective states in the OECD since 1870: The role of inequality

Abstract

UN SDGs

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