scholarly journals Weak States and Steady States: The Dynamics of Fiscal Capacity

2013 ◽  
Vol 5 (4) ◽  
pp. 205-235 ◽  
Author(s):  
Timothy Besley ◽  
Ethan Ilzetzki ◽  
Torsten Persson

Investments in fiscal capacity—economic institutions for tax compliance—are an important feature of economic development. This paper develops a dynamic model to study the evolution of fiscal capacity over time. We contrast a social planner's investment path with politically feasible paths. Three types of states emerge in the long run: a common-interest state where public resources are devoted to public goods, a redistributive state where additional fiscal capacity is used for transfers, and a weak state with no transfers and a low level of public goods provision. We also present some preliminary evidence consistent with the theory. (JEL E23, E62, H23, H26, H41)


2019 ◽  
Vol 38 (78) ◽  
pp. 671-700
Author(s):  
Leopoldo Fergusson

I propose three broad sets of political economy underpinnings for the persistence of conflict and the weak state. First, a “public goods trap” rooted in inequality implies that a low supply of, and demand for, public goods reinforce each other. Second, economic and political rents create vested interests in the status quo. Political rents are particularly problematic, partly because reformers face a curse of dimensionality: many things have to work well for state capacity and stable peace to consolidate. Finally, a very clientelistic pattern of political exchange consolidates a weak state, and weak states are fertile ground for clientelism.



2016 ◽  
Author(s):  
Andrej Angelovski ◽  
Daniela Di Cagno ◽  
Werner GGth ◽  
Francesca Marazzi ◽  
Luca Panaccione


Author(s):  
DAVID MUCHLINSKI

Developing states lacking a monopoly over the use of force are commonly seen as having failed to live up to the ideal Weberian sovereign type. Yet rather than being a calling card of anarchy, the devolution of important state functions to subnational actors is a rational strategy for developing states to effectively provide important public goods. The case study of the Jewish Community of Palestine demonstrates one instance where subnational communities provided public goods. This study highlights the causal effect of property rights within institutions to drive behavior consistent with the provision of public and private goods. Analyzing temporal and institutional variation across two agricultural communities demonstrates a unique strategy of subnational governance and public goods provision in a developing state. Devolution of public goods provision to subnational actors may be an alternative strategy of governance for developing states that are not yet able to effectively provide important public goods.



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