The fiscal impact of peace: Evidence from the PDET municipalities in Colombia

Mario L. Chacón

No wp-2025-100, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Can negotiated peace settlements promote fiscal capacity in post-conflict countries? We explore this question in the context of the 2016 peace agreement in Colombia, after which more than 6,000 insurgents collectively demobilized and a series of peace zones was created. Leveraging the uneven implementation of the peace agreement programmes, we estimate their impact on fiscal outcomes using a 'difference-in-discontinuities' design. We find that municipalities selected to be recipients of programmes increased their local revenues compared to similar neighbouring non-eligible municipalities.

Keywords: Peace; Fiscal capacity; Taxation; Real property; Colombia (search for similar items in EconPapers)
Date: 2025
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