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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, BResearch 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 EconomyVolume
50Pagination
106-121ISSN
0176-2680Department/School
TSBEPublisher
Elsevier BVPlace of publication
NetherlandsRights statement
Copyright 2017 Elsevier B.V.Repository Status
- Restricted