Abstract:
This Paper Extends a Model of a Three-Person Hierarchy Developed by Tyrole (1986) to the Case of Fiscal Or Military Bureaucraties. It Is Demonstrated That a Decrease in Economies of Scale in the Application of Military Force Results in a Contraction of Territorial Boundaries and an Expansion of the Role of the State. an Attempt Is Than Made to Examine Whether This Model Can Explain the Decline of Roman Civilization in Western Europe. the Evidence Presented Is Consistent with the Hypothesis That the Gradual Introduction of a Series of Improvements in Cavalry Combat Increased the Cost of Controlling Territory. One Result Was a Rise in Taxation --A Shift in the State's Internal Frontier Between Private and Public Activity in Favor of the Latter. Another Consequence Was a Decrease in the Area Under Effective Military Control -- an Inward Movement of the State's External Frontier.