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

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Madsen , J B , Wang , C & Steiner , B E 2017 , ' The creation of effective states in the OECD since 1870 : The role of inequality ' , European Journal of Political Economy , vol. 50 , pp. 106-121 . https://doi.org/10.1016/j.ejpoleco.2017.03.007

Title: The creation of effective states in the OECD since 1870 : The role of inequality
Author: Madsen, Jakob B; Wang, Cong; Steiner, Bodo Ernst
Contributor: University of Helsinki, Department of Economics and Management
Date: 2017
Language: eng
Number of pages: 16
Belongs to series: European Journal of Political Economy
ISSN: 0176-2680
URI: http://hdl.handle.net/10138/300210
Abstract: 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.
Subject: 511 Economics
512 Business and Management
517 Political science
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