eCite Digital Repository

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


Madsen, JB and Wang, C and Steiner, B, The creation of effective states in the OECD since 1870: the role of inequality, European Journal of Political Economy, 50 pp. 106-121. ISSN 0176-2680 (2017) [Refereed Article]

Copyright Statement

Copyright 2017 Elsevier B.V.

Official URL:

DOI: doi:10.1016/j.ejpoleco.2017.03.007


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 18702013. 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.

Item Details

Item Type:Refereed Article
Keywords:inequality, institutions, state capacity, OECD countries
Research Division:Education
Research Group:Curriculum and pedagogy
Research Field:Economics, business and management curriculum and pedagogy
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Economic growth
UTAS Author:Wang, C (Dr Cong Wang)
ID Code:128115
Year Published:2017
Web of Science® Times Cited:6
Deposited By:TSBE
Deposited On:2018-09-03
Last Modified:2018-10-09

Repository Staff Only: item control page