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Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform

Jain, Sanjay; Majumdar, Sumon; Mukand, Sharun - 2014

This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact...

Persistent link: https://www.econbiz.de/10010333413

Engineering Crises: Favoritism and Strategic Fiscal Indiscipline

Saint-Paul, Gilles; Ticchi, Davide; Vindigni, Andrea - 2017

If people understand that some macroeconomic policies are unsustainable, why would they vote for them in the first place? We develop a political economy theory of the endogenous emergence of fiscal crises, based on the idea that the adjustment mechanism to a crisis favors some social groups,...

Persistent link: https://www.econbiz.de/10011744963

State Capacity, National Economic Policies and Local Development: The Russian State in the Southern Urals

Asmus, Gerda; Franck, Raphaël - 2022

This study analyzes how state capacity shapes the local impact of national policies by exploiting a quasi-natural experiment in the regional expansion of the state. It uses the local discontinuity created by the boundary of the largest peasant rebellion in 18th century Russia where the state...

Persistent link: https://www.econbiz.de/10013177650

All or Nothing: State Capacity and Optimal Public Goods Provision

Bierbrauer, Felix; Winkelmann, Justus - 2018

We study the provision of public goods. Different public goods can be bundled provided there is enough capacity, i.e. resources to pay for all the public goods in the bundle. The analysis focuses on the all-or-nothing-mechanism: Expand provision as much as resource feasible if no one vetoes -...

Persistent link: https://www.econbiz.de/10011931988

Performative State Capacity and Climate (In)Action

Feld, Immanuel; Fetzer, Thiemo - 2024

Climate action requires significant public- and private sector investment to achieve meaningful reductions in carbon emissions. This paper documents that large-scale austerity, coupled with barriers to flows of data and a lack of (digital) skills in (local) government, may have been a...

Persistent link: https://www.econbiz.de/10014534280

Informational Boundaries of the State

Fetzer, Thiemo; Shaw, Callum; Edenhofer, Jacob - 2024

Formal conceptions of state capacity have mostly focused on indirect measures of state capacity – by, for instance, using the state's fiscal or extractive capacity as a proxy for its overall capacity. Yet, this input or extractive view of state capacity falls short, especially since...

Persistent link: https://www.econbiz.de/10014534301

Naturalization and Labor Market Performance of Immigrants in Germany

Riphahn, Regina T.; Saif, Salwan - 2018

Naturalization may be a relevant policy instrument affecting immigrant integration in host-country labor markets. We study the effect of naturalization on labor market outcomes of immigrants in Germany. We apply recent survey data and exploit a reform of naturalization rules in an instrumental...

Persistent link: https://www.econbiz.de/10011931967

Caught between Cultures: Unintended Consequences of Improving Opportunity for Immigrant Girls

Dahl, Gordon B.; Felfe, Christina; Frijters, Paul; … - 2020

explain the otherwise puzzling findings from a reform which granted automatic birthright citizenship to eligible immigrant … the months before versus after the reform, we find that birthright citizenship lowers measures of life satisfaction and … salient. Birthright citizenship results in disillusionment where immigrant Muslim girls believe their chances of achieving …

Persistent link: https://www.econbiz.de/10012179844

Product quality, informality, and child labour

Fotoniata, Eugenia; Moutos, Thomas - 2011

This paper studies the interactions between the structure of product demand, relative wages, and the allocation of economic activity across two sectors. The agrarian sector produces a homogeneous good and consists of informal firms employing adults and children. The modern sector produces a...

Persistent link: https://www.econbiz.de/10010277363

Information, Asymmetric Incentives, or Withholding? Understanding the Self-Enforcement of Value-Added Tax

Waseem, Mazhar - 2019

During the period 1996-2000, the coverage of VAT in Pakistan rose by twenty times in terms of the number of firms in the tax net and by ten times in terms of the volume of transactions subject to it. This paper leverages this staggered introduction of VAT in the country to estimate its...

Persistent link: https://www.econbiz.de/10012052842