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Anatomy of a premodern state

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  • Costa, Leonor F.
  • Henriques, Antonio
  • Palma, Nuno

Abstract

We provide a blueprint for constructing measures of state capacity in premodern states, offering several advantages over the current state of the art. We argue that assessing changing state capacity requires considering the composition of revenues, expenditure patterns, and local-level budgets. As an application, we examine the case of Portugal (1367-1844). Our findings demonstrate that throughout most of this extended period, Portugal maintained comparatively high fiscal and legal capacities. This challenges claims that Portugal’s economic decline from the second half of the eighteenth century was due to low state capacity.

Suggested Citation

  • Costa, Leonor F. & Henriques, Antonio & Palma, Nuno, 2023. "Anatomy of a premodern state," CEPR Discussion Papers 18326, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18326
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    1. António Henriques & Nuno Palma, 2023. "Comparative European Institutions and the Little Divergence, 1385–1800," Journal of Economic Growth, Springer, vol. 28(2), pages 259-294, June.

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    More about this item

    Keywords

    State capacity; Fiscal capacity; Early modern growth; Portugal;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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