Geography, Transparency and Institutions

69 Pages Posted: 3 Sep 2013

See all articles by Joram Mayshar

Joram Mayshar

Hebrew University of Jerusalem - Department of Economics

Omer Moav

University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR)

Zvika Neeman

Tel Aviv University - Eitan Berglas School of Economics; Boston University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 2013

Abstract

We propose a theory by which geographic variations in the transparency of the production process explain cross-regional differences in the scale of the state, in its hierarchical structure, and in property rights over land. The key linkage between geography and these institutions, we posit, is via the effect of transparency on the state's extractive capacity. We apply our theory to explain institutional differences between ancient Egypt and ancient Upper and Lower Mesopotamia. We also discuss the relevance of our theory to analyses of the deep rooted factors affecting economic development and the growth of taxation in the modern age.

Keywords: Geography, Institutions, Land Tenure, State Capacity, State Concentration, Transparency

JEL Classification: D02, D82, H10, O43

Suggested Citation

Mayshar, Joram and Moav, Omer and Neeman, Zvika, Geography, Transparency and Institutions (September 2013). CEPR Discussion Paper No. DP9625. Available at SSRN: https://ssrn.com/abstract=2319972

Joram Mayshar (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 02-5883138 (Phone)
+972 02-5816071 (Fax)

Omer Moav

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

HOME PAGE: http://www2.warwick.ac.uk/fac/soc/economics/staff/academic/moav

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Zvika Neeman

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel

HOME PAGE: http://www.tau.ac.il/~zvika/

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-3184 (Phone)
617-353-4449 (Fax)

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