Taxation and democracy: an instrumental variable approach

Gur N.

APPLIED ECONOMICS LETTERS, cilt.21, sa.11, ss.763-766, 2014 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 21 Sayı: 11
  • Basım Tarihi: 2014
  • Doi Numarası: 10.1080/13504851.2014.889793
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.763-766
  • Anahtar Kelimeler: tax revenue, casualties, democracy, instrumental variable
  • Marmara Üniversitesi Adresli: Hayır

Özet

Our article investigates the effect of taxation on democracy. We exploit exogenous variation in taxation driven by wars from the pre-modern era and document a positive and highly significant first-stage relationship between pre-modern war casualties and taxation. Using this instrumental variable strategy, we find that taxation has a positive effect on democracy.