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Tax collection in the Roman Empire: a new institutional economics approach

Author

Listed:
  • Óscar Gutiérrez

    (Universitat Autónoma de Barcelona)

  • Marco Martínez-Esteller

    (Universitat Autónoma de Barcelona)

Abstract

This paper reviews the Roman tax collection system since the Late Republic to the Principality, focusing on the transition from the tax-farming system to a more centralized, census-based administration. We attempt to justify this transition according to New Institutional Economic theories (Transaction Cost Economics and Property Rights Theory). The paper argues that, during the Republic, the auction-based system of tax farming ended up giving place to opportunistic behaviors and abusing practices due to information asymmetries and contract incompleteness, enhanced by the collusion of tax farmers and governors. The Principality improved the efficiency of the tax collection system through the introduction of a bureaucratic and census-based administration, which allowed imperial employees to monitor the tax-farming activities.

Suggested Citation

  • Óscar Gutiérrez & Marco Martínez-Esteller, 2022. "Tax collection in the Roman Empire: a new institutional economics approach," Constitutional Political Economy, Springer, vol. 33(3), pages 378-401, September.
    • Handle: RePEc:kap:copoec:v:33:y:2022:i:3:d:10.1007_s10602-021-09355-5
    DOI: 10.1007/s10602-021-09355-5
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    More about this item

    Keywords

    Roman Republic; Principality; Tax-farmers; New institutional economics; Moral hazard; Incomplete contracts;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913

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