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• W2922145738 startingPage "277" @default.
• W2922145738 abstract "Tax extraction is often low in absolutist regimes. Why are absolutists unable to convert power into revenue? Supported by evidence from Imperial China, we explain this puzzle with a principal-agent model which reveals that absolutists, unconstrained by rule of law and unable to commit to not predating on their tax-collecting agents (and the masses), may find it optimal to settle for a low wage-low tax equilibrium, while permitting agents to keep extra, unmonitored taxes. Our analysis suggests that low investment in administrative capacity is a conscious choice for an absolutist since it substitutes for credible commitment to refrain from confiscation from its agents." @default.
• W2922145738 created "2019-03-22" @default.
• W2922145738 creator A5038352115 @default.
• W2922145738 creator A5039585221 @default.
• W2922145738 date "2019-06-01" @default.
• W2922145738 modified "2023-09-27" @default.
• W2922145738 title "The Paradox of Power: Principal-agent problems and administrative capacity in Imperial China (and other absolutist regimes)" @default.
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• W2922145738 doi "https://doi.org/10.1016/j.jce.2019.03.002" @default.
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