Gennaioli, Nicola; Voth, Joachim - Department of Economics and Business, Universitat … - 2011
powers. We argue that the impact of war was crucial for state building, and depended on: i) the importance of financial … the "Military Revolution", which raised the cost of war. Initially, this caused more cohesive states to invest in state … the cost of war escalates further, all remaining states engaged in a race to the top, resulting in greater state building. …