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Article
The creation of effective states in the OECD since 1870: The role of inequality
European Journal of Political Economy
  • Jakob B Madsen, Monash University
  • Cong Wang, Bond University
  • Bodo Steiner, University of Helsinki
Date of this Version
3-18-2017
Document Type
Journal Article
Publication Details

Citation only

Madsen, J. B., Wang, C., & Steiner, B. (2017). The creation of effective states in the OECD since 1870: The role of inequality. European Journal of Political Economy, 1-16.

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© 2017 Elsevier B.V. All rights reserved.

Abstract

Research shows that state capacity is crucial for economic development, yet the impact of inequality on state capacity is not well understood. This paper examines the impact of income inequality on three key dimensions of state capacity, namely legal, fiscal and collective capacity using annual data for a core of 21 OECD countries over the period 1870–2013. We find that the marked reduction in inequality over most of the last century starting from 1916 was pivotal to the significant improvements in legal, fiscal and collective capacity in the OECD countries over the same period.

Citation Information
Jakob B Madsen, Cong Wang and Bodo Steiner. "The creation of effective states in the OECD since 1870: The role of inequality" European Journal of Political Economy (2017) p. 1 - 16 ISSN: 0176-2680
Available at: http://works.bepress.com/cong-wang/1/