The dynamic consequences of state-building: evidence from the French Revolution

Cédric Chambru, Emeric Henry and Benjamin Marx

No 406, ECON - Working Papers from Department of Economics - University of Zurich

Abstract: How do radical reforms of the state shape economic development over time? In 1790, France’s first Constituent Assembly overhauled the kingdom’s organization to set up new administrative entities and local capitals. In a subset of departments, new capitals were chosen quasi-randomly as the Assembly abandoned its initial plan to rotate administrative functions across multiple cities. We study how exogenous changes in local administrative presence affect the state’s coercive and productive capacity, as well as economic development in the ensuing decades. In the short run, proximity to the state increases taxation, conscription, and investments in law enforcement capacity. In the long run, the new capitals and their periphery obtain more public goods and experience faster economic development. One hundred years after the reform, capitals are 40% more populated than comparable cities in 1790. Our results shed new light on the intertemporal and redistributive impacts of state-building in the context of one of the most ambitious administrative reforms ever implemented.

Keywords: State capacity; state-building; administrative reform; economic development (search for similar items in EconPapers)
JEL-codes: D70 H41 H71 O18 O43 (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-his and nep-ure
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https://www.zora.uzh.ch/id/eprint/217105/7/ZORA_217105.pdf (application/pdf)

Related works:
Journal Article: The Dynamic Consequences of State Building: Evidence from the French Revolution (2024)
Working Paper: The Dynamic Consequences of State-Building: Evidence from the French Revolution (2022)
Working Paper: The Dynamic Consequences of State-Building: Evidence from the French Revolution (2022)
Working Paper: The Dynamic Consequences of State-Building: Evidence from the French Revolution (2022)
Working Paper: The Dynamic Consequences of State-Building: Evidence from the French Revolution (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zur:econwp:406

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