Benjamin Marx (Alesina Seminar)

Date: 

Thursday, April 21, 2022, 4:30pm to 5:45pm

Location: 

CGIS Knafel, room K354

Today's Speaker

Benjamin Marx (Sciences Po), "The Dynamic Consequences of State-Building: Evidence from the French Revolution" (with Cedric Chambru and Emeric Henry)

Paper can be accessed here

Abstract

How do radical reforms of the state shape economic development over time? In 1790, France’s first Constituent Assembly overhauled the kingdom’s organization to set up new administrative entities and local capitals. In a subset of departments, new capitals were chosen quasi-randomly as the Assembly abandoned its initial plan to rotate administrative functions across multiple cities. We study how exogenous changes in local administrative presence affect the state’s coercive and productive capacity, as well as economic development in the ensuing decades. In the short run, proximity to the state increases taxation, conscription, and investments in law enforcement capacity. In the long run, the new capitals and their periphery obtain more public goods and experience faster economic development. One hundred years after the reform, capitals are 40% more populated than comparable cities in 1790. Our results shed new light on the intertemporal and redistributive impacts of state-building in the context of one of the most ambitious administrative reforms ever implemented.

Co-sponsored by FAS and IQSS, the Program on Political Economy (PE) supports research-related activities that integrate the study of economics and politics, whether by studying economic behavior in the political process or political behavior in the marketplace. In general, positive political economy is concerned with showing how observed differences among institutions affect political and economic outcomes in various social, economic, and political systems and how the institutions themselves change and develop in response to individual and collective beliefs, preferences, and strategies.

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All interested faculty and students are invited to attend.