Your browser has javascript turned off or blocked. This will lead to some parts of our website to not work properly or at all. Turn on javascript for best performance.

The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Agustin Goenaga

Agustin Goenaga

Researcher

Agustin Goenaga

Military Rivalries, Alliances and Taxation : The International Origins of Modern Fiscal Contracts

Author

  • Augustín Goenaga
  • Alexander von Hagen-Jamar

Summary, in English

Bellicist theories of comparative development predict increases in taxation as the result of military rivalries. Others claim that this causal relationship is contingent on particular geographical, institutional, and historical conditions. In this paper, we explore the conditional effects of military rivalries on taxation during the 19th and 20th centuries using time-series cross-section models. We hypothesize that international norms of territoriality, inter-state military alliances, and regime type will condition the direction and magnitude of the effect of rivalries on taxation. Our models suggest that from 1815 to 1945 the effects of rivalry on taxation were insignificant independently of these systemic, dyadic, and institutional factors. However, after 1945 when norms of territorial integrity consolidated, democracies with strong military allies responded to military pressures by lowering taxes in the short-term, reoriented public expenditures towards social spending, and ultimately increased taxes in the long run through a reconfiguration of the fiscal contract. Conversely, autocracies with strong allies responded to military pressures by increasing taxes in the short-term, capturing as much wealth as possible but failing to consolidate durable fiscal institutions.

Department/s

  • Department of Political Science

Publishing year

2016-09

Language

English

Publication/Series

STANCE Working Papers Series

Volume

2016

Issue

11

Document type

Working paper

Topic

  • Political Science

Keywords

  • Military Rivalries
  • Alliances
  • Taxation
  • Fiscal Contracts

Status

Published

Project

  • State-Making and the Origins of Global Order in the Long Nineteenth Century and Beyond