The Fiscal Cost of Conflict: Evidence from La Violencia in Colombia
This paper studies the effect of internal conflict on local fiscal capacity using evidence from Colombia's political confliict in the mid-20th century, better known as La Violencia. Following a difference-in-differences strategy, I find that internal conflict has negative long-term consequences...
- Autores:
-
Ricciulli Marín, Diana Carolina
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2020
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/47921
- Acceso en línea:
- http://hdl.handle.net/1992/47921
- Palabra clave:
- Fiscal capacity
Internal conflict
La Violencia
Colombia
D74, H20, N26
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
| Summary: | This paper studies the effect of internal conflict on local fiscal capacity using evidence from Colombia's political confliict in the mid-20th century, better known as La Violencia. Following a difference-in-differences strategy, I find that internal conflict has negative long-term consequences in local fiscal capacity. More precisely, municipalities affected by La Violencia experienced an average reduction of 10.3% in their tax revenue and a fall of 2.8 percentage points on their ratio of taxes to total revenue. Effects lasted for more than a decade and are only partially explained by a population and economic activity downturn. These results are consistent with previous evidence indicating a negative effect of violence on tax collection efficiency at the local level. |
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