The Fiscal Cost of Conflict: Evidence from La Violencia in Colombia
Diana Ricciulli ()
Documentos CEDE from Universidad de los Andes - CEDE
This paper studies the effect of internal conflict on local fiscal capacity using evidence from Colombiaâ€™s political conflict in the mid-20th century, better known as La Violencia. Following a difference-in-differences strategy, I find that internal conflict has negative long-term consequences in local fiscal capacity. More precisely, municipalities affected by La Violencia experienced an average reduction of 10.3% in their tax revenue and a fall of 2.8 percentage points on their ratio of taxes to total revenue. Effects lasted for more than a decade and are only partially explained by a population and economic activity downturn. These results are consistent with previous evidence indicating a negative effect of violence on tax collection effciency at the local level.
Keywords: Fiscal capacity; Internal conflict; La Violencia; Colombia (search for similar items in EconPapers)
JEL-codes: D74 H20 N26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:col:000089:018537
Access Statistics for this paper
More papers in Documentos CEDE from Universidad de los Andes - CEDE
Bibliographic data for series maintained by Universidad De Los Andes-Cede ().