The origins of fiscal capacity have traditionally been linked to warfare and democratization. However, non-democratic states also invest in fiscal capacity, even in times of peace. In fact, the majority of income taxes-a cornerstone of government finance-were introduced by non-democratic states...

Why are democracies so unequal? Despite the widespread expectation that democracy, via expansion of the franchise, would lead to redistribution in favor of the masses, in reality majorities regularly lose out in democracies. Taking a broad view of inequality as encompassing the distribution of...

Zahlreiche Staaten haben am Ende des 20. Jahrhunderts den Wechsel von Sozialismus und Zentralverwaltungswirtschaft zu Demokratie und Marktwirtschaften vollzogen. Das unterlegene Wirtschaftssystem wurde durch ein leistungsfähigeres ersetzt und damit die Grundlage für eine bessere...

We study the effect of power sharing over income redistribution among different socio-economic groups in a model of redistributive politics with fairness concern. We prove that a unique pure-strategy equilibrium exists under fairly general conditions; and we show that equilibrium transfers...