Taxation and democracy: an instrumental variable approach

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.

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Year of publication:	2014
Authors:	Gur, Nurullah
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 21.2014, 11, p. 763-766
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010761413