Weak States and Steady States: The Dynamics of Fiscal Capacity
构建动态模型研究财政能力(征税合规的经济制度)的演变,对比社会规划者与政治可行路径,发现长期存在三种国家类型:公共利益型、再分配型和弱国,并提供初步证据支持。
Investments in fiscal capacity—economic institutions for tax compliance—are an important feature of economic development. This paper develops a dynamic model to study the evolution of fiscal capacity over time. We contrast a social planner's investment path with politically feasible paths. Three types of states emerge in the long run: a common-interest state where public resources are devoted to public goods, a redistributive state where additional fiscal capacity is used for transfers, and a weak state with no transfers and a low level of public goods provision. We also present some preliminary evidence consistent with the theory.