American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Dynamic Consequences of State Building: Evidence from the French Revolution
American Economic Review
vol. 114,
no. 11, November 2024
(pp. 3578–3622)
Abstract
How do radical reforms shape economic development over time? In 1790, the French Constituent Assembly overhauled the kingdom's organization to establish new local capitals. In some departments, the choice of local capitals over rival candidate cities was plausibly exogenous. We study how changes in administrative presence affect state capacity and development in the ensuing decades. In the short run, administrative proximity increases taxation and investments in law enforcement. In the long run, capitals obtain more public goods and grow faster. Our results shed light on the dynamic impacts of state building following one of history's most ambitious administrative reforms.Citation
Chambru, Cédric, Emeric Henry, and Benjamin Marx. 2024. "The Dynamic Consequences of State Building: Evidence from the French Revolution." American Economic Review, 114 (11): 3578–3622. DOI: 10.1257/aer.20220110Additional Materials
JEL Classification
- D70 Analysis of Collective Decision-Making: General
- H41 Public Goods
- H71 State and Local Taxation, Subsidies, and Revenue
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O43 Institutions and Growth