Warfare, Fiscal Capacity, and Performance

Mauricio Prado, Mark Dincecco

Research output: Working paperResearch

Abstract

We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.
We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.
LanguageEnglish
PublisherSSRN: Social Science Research Network
Pages1-37
Number of pages37
StatePublished - 11 Nov 2011

Keywords

    Cite this

    Prado, M., & Dincecco, M. (2011). Warfare, Fiscal Capacity, and Performance. (pp. 1-37). SSRN: Social Science Research Network.
    Prado, Mauricio ; Dincecco, Mark. / Warfare, Fiscal Capacity, and Performance. SSRN: Social Science Research Network, 2011. pp. 1-37
    @techreport{ad0e38edd2c945c5be8fb5c9bfaed439,
    title = "Warfare, Fiscal Capacity, and Performance",
    abstract = "We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.",
    keywords = "Pre-modern wars, Fiscal capacity, Public services, Worker productivity",
    author = "Mauricio Prado and Mark Dincecco",
    year = "2011",
    month = "11",
    day = "11",
    language = "English",
    pages = "1--37",
    publisher = "SSRN: Social Science Research Network",
    type = "WorkingPaper",
    institution = "SSRN: Social Science Research Network",

    }

    Prado, M & Dincecco, M 2011 'Warfare, Fiscal Capacity, and Performance' SSRN: Social Science Research Network, pp. 1-37.

    Warfare, Fiscal Capacity, and Performance. / Prado, Mauricio; Dincecco, Mark.

    SSRN: Social Science Research Network, 2011. p. 1-37.

    Research output: Working paperResearch

    TY - UNPB

    T1 - Warfare, Fiscal Capacity, and Performance

    AU - Prado,Mauricio

    AU - Dincecco,Mark

    PY - 2011/11/11

    Y1 - 2011/11/11

    N2 - We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.

    AB - We exploit differences in casualties sustained in pre-modern wars to estimate the impact of fiscal capacity on economic performance. In the past, states fought different amounts of external conflicts, of various lengths and magnitudes. To raise the revenues to wage wars, states made fiscal innovations, which persisted and helped to shape current fiscal institutions. Economic historians claim that greater fiscal capacity was the key long-run institutional change brought about by historical conflicts. Using casualties sustained in pre-modern wars to instrument for current fiscal institutions, we estimate substantial impacts of fiscal capacity on GDP per worker. The results are robust to a broad range of specifications, controls, and sub-samples.

    KW - Pre-modern wars

    KW - Fiscal capacity

    KW - Public services

    KW - Worker productivity

    M3 - Working paper

    SP - 1

    EP - 37

    BT - Warfare, Fiscal Capacity, and Performance

    PB - SSRN: Social Science Research Network

    ER -

    Prado M, Dincecco M. Warfare, Fiscal Capacity, and Performance. SSRN: Social Science Research Network. 2011 Nov 11, p. 1-37.