The Fundamental Coase of Development: Property Rights Foundations of the Effective State
Journal of Institutional Economics, forthcoming
38 Pages Posted: 20 Jun 2019 Last revised: 12 May 2020
Date Written: May 11, 2020
This paper identifies political property rights and jurisdictional rivalry as the fundamental dimensions to understand comparative economic and political development. After developing a general framework for the study of relative performance in the ‘market for governance’, we argue that Medieval western Europe was characterized by initial conditions conducive to the development of the effective state. Then, we extend the framework to the case of the development of public finance thought and practices in early modern Germany.
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