State Capacity and Economic Development: A Network Approach

We study the direct and spillover effects of local state capacity in Colombia. We model the determination of state capacity as a network game between municipalities and the national government. We estimate this model exploiting the municipality network and the roots of local state capacity related t...

Full description

Bibliographic Details
Main Authors: Acemoglu, Daron, Garcia-Jimeno, Camilo, Robinson, James A.
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: American Economic Association 2015
Online Access:http://hdl.handle.net/1721.1/98421
https://orcid.org/0000-0003-0908-7491
_version_ 1826206295884038144
author Acemoglu, Daron
Garcia-Jimeno, Camilo
Robinson, James A.
author2 Massachusetts Institute of Technology. Department of Economics
author_facet Massachusetts Institute of Technology. Department of Economics
Acemoglu, Daron
Garcia-Jimeno, Camilo
Robinson, James A.
author_sort Acemoglu, Daron
collection MIT
description We study the direct and spillover effects of local state capacity in Colombia. We model the determination of state capacity as a network game between municipalities and the national government. We estimate this model exploiting the municipality network and the roots of local state capacity related to the presence of the colonial state and royal roads. Our estimates indicate that local state capacity decisions are strategic complements. Spillover effects are sizable, accounting for about 50 percent of the quantitative impact of an expansion in local state capacity, but network effects driven by equilibrium responses of other municipalities are much larger.
first_indexed 2024-09-23T13:26:53Z
format Article
id mit-1721.1/98421
institution Massachusetts Institute of Technology
language en_US
last_indexed 2024-09-23T13:26:53Z
publishDate 2015
publisher American Economic Association
record_format dspace
spelling mit-1721.1/984212022-10-01T15:22:01Z State Capacity and Economic Development: A Network Approach Acemoglu, Daron Garcia-Jimeno, Camilo Robinson, James A. Massachusetts Institute of Technology. Department of Economics Acemoglu, Daron We study the direct and spillover effects of local state capacity in Colombia. We model the determination of state capacity as a network game between municipalities and the national government. We estimate this model exploiting the municipality network and the roots of local state capacity related to the presence of the colonial state and royal roads. Our estimates indicate that local state capacity decisions are strategic complements. Spillover effects are sizable, accounting for about 50 percent of the quantitative impact of an expansion in local state capacity, but network effects driven by equilibrium responses of other municipalities are much larger. United States. Army Research Office. Multidisciplinary University Research Initiative (W911NF-12-1-0509) 2015-09-09T15:45:36Z 2015-09-09T15:45:36Z 2015-08 Article http://purl.org/eprint/type/JournalArticle 0002-8282 1944-7981 http://hdl.handle.net/1721.1/98421 Acemoglu, Daron, Camilo Garcia-Jimeno, and James A. Robinson. “State Capacity and Economic Development: A Network Approach.” American Economic Review 105, no. 8 (August 2015): 2364–2409. © 2015 American Economic Association https://orcid.org/0000-0003-0908-7491 en_US http://dx.doi.org/10.1257/aer.20140044 American Economic Review Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association
spellingShingle Acemoglu, Daron
Garcia-Jimeno, Camilo
Robinson, James A.
State Capacity and Economic Development: A Network Approach
title State Capacity and Economic Development: A Network Approach
title_full State Capacity and Economic Development: A Network Approach
title_fullStr State Capacity and Economic Development: A Network Approach
title_full_unstemmed State Capacity and Economic Development: A Network Approach
title_short State Capacity and Economic Development: A Network Approach
title_sort state capacity and economic development a network approach
url http://hdl.handle.net/1721.1/98421
https://orcid.org/0000-0003-0908-7491
work_keys_str_mv AT acemogludaron statecapacityandeconomicdevelopmentanetworkapproach
AT garciajimenocamilo statecapacityandeconomicdevelopmentanetworkapproach
AT robinsonjamesa statecapacityandeconomicdevelopmentanetworkapproach