State Capacity and Long-Run Performance

Mark Dincecco and Gabriel Katz

MPRA Paper from University Library of Munich, Germany

Abstract: We examine the long-term links between state capacity and economic performance. Our database is novel and spans 11 countries and 4 centuries in Europe, the birthplace of modern economic growth. A dynamic simultaneous equation panel model indicates that the performance effects of states with modern extractive and productive capabilities are significant, large, and robust to a broad range of specifications, controls, and sub-samples. We find that the establishment of an effective state increased per capita GDP by 7 percent over a half-century and by 11 percent over a full century.

Keywords: political regimes; state capacity; public services; economic performance; European history (search for similar items in EconPapers)
JEL-codes: H11 N43 O43 (search for similar items in EconPapers)
Date: 2012-04-23
New Economics Papers: this item is included in nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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https://mpra.ub.uni-muenchen.de/50042/1/MPRA_paper_50042.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/55275/1/MPRA_paper_55275.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/55409/1/MPRA_paper_55409.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/39217/1/MPRA_paper_39217.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/42316/1/MPRA_paper_42316.pdf revised version (application/pdf)

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