State Capacity, Reciprocity, and the Social Contract

Timothy Besley

No 13968, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper explores the role of civic culture in expanding fiscal capacity by developing a model based on reciprocal obligations; citizens pay their taxes and the state provides public goods. Civic culture evolves over time according to the relative payoff of civic-minded and materialist citizens. A strong civic culture manifests itself as high tax revenues sustained by high levels of voluntary tax compliance and provision of public goods. This captures the idea of government as a reciprocal social contract between the state and its citizens. The paper highlights the role of political institutions and common interests in the emergence civic culture.

Date: 2019-08
New Economics Papers: this item is included in nep-soc and nep-ure
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: State Capacity, Reciprocity, and the Social Contract (2020)
Working Paper: State capacity, reciprocity and the social contract (2020)
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