Journal article
A DYNAMIC MODEL OF TAXATION, CORRUPTION, AND PUBLIC INVESTMENT IN THE DYNASTIC CYCLE: THE CASE OF IMPERIAL CHINA
Abstract
This paper develops a stochastic growth model that reproduces the main stylized facts of Imperial China's dynastic cycle—in particular, the time path of taxation, public spending, and corruption and their attendant impacts on production and income distribution. In this model, the emperor uses part of his tax income to finance the building of public capital and administrative institutions. This “institutional capital” enhances the productivity …
Authors
Chan KS; Laffargue J-P
Journal
Macroeconomic Dynamics, Vol. 20, No. 8, pp. 2123–2147
Publisher
Cambridge University Press (CUP)
Publication Date
December 2016
DOI
10.1017/s1365100515000218
ISSN
1365-1005