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

journal contribution
posted on 2023-05-19, 20:57 authored by Madsen, JB, Wang, C, Steiner, B
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.

History

Publication title

European Journal of Political Economy

Volume

50

Pagination

106-121

ISSN

0176-2680

Department/School

TSBE

Publisher

Elsevier BV

Place of publication

Netherlands

Rights statement

Copyright 2017 Elsevier B.V.

Repository Status

  • Restricted

Socio-economic Objectives

Economic growth

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