The book explores the historical development of political systems and financial structures across Europe, analyzing how these elements have evolved over time. By focusing on the interplay between governance and fiscal policies, it offers insights into the factors that have shaped modern European states and their economic practices. Dincecco's work highlights the significance of these changes in understanding contemporary political and financial landscapes.
How did today's rich states first establish modern fiscal systems? To answer this question, Political Transformations and Public Finances by Mark Dincecco examines the evolution of political regimes and public finances in Europe over the long term. The book argues that the emergence of efficient fiscal institutions was the result of two fundamental political transformations that resolved long-standing problems of fiscal fragmentation and absolutism. States gained tax force through fiscal centralization and restricted ruler power through parliamentary limits, which enabled them to gather large tax revenues and channel funds toward public services with positive economic benefits. Using a novel combination of descriptive, case study, and statistical methods, the book pursues this argument through a systematic investigation of a new panel database that spans eleven countries and four centuries. The book's findings are significant for our understanding of economic history, and have important consequences for current policy debates.
Analyzes the historical origins of state and provides a new perspective on the relationship between state capacity and economic development.