Taxation and democracy: an instrumental variable approach
APPLIED ECONOMICS LETTERS, cilt.21, sa.11, ss.763-766, 2014 (SSCI)
- 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.