Economic Foundations of the Territorial State System

The contemporary world is organized into a system of territorial states in which rulers exercise authority inside clearly defined boundaries and recognize the authority of other rulers outside those boundaries. We develop a model to explain how the major economic and military developments in Europe...

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Bibliographic Details
Published in:American journal of political science 2018-10, Vol.62 (4), p.954-966
Main Authors: Acharya, Avidit, Lee, Alexander
Format: Article
Language:English
Subjects:
15th century
Authority
Boundaries
Competition
Economic development
Governance
Tax revenues
Taxation
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Summary:The contemporary world is organized into a system of territorial states in which rulers exercise authority inside clearly defined boundaries and recognize the authority of other rulers outside those boundaries. We develop a model to explain how the major economic and military developments in Europe starting in the fifteenth century contributed to the development of this system. Our model rationalizes the system as an economic cartel in which self-interested and forward-looking rulers maintain high tax revenues by reducing competition in the "market for governance."
ISSN:0092-5853
1540-5907
DOI:10.1111/ajps.12379