Discussion paper

DP20132 State Capacity and Executive Constraints in Early Modern Europe

The prevailing view of Europe's political history is that the rise of constrained governments and the increases in state capacity advanced hand in hand. In this study, we reevaluate this perspective by constructing new historical indices for both. Our findings challenge the presumed connection, illustrating that high-capacity states existed under unconstrained government, and low-capacity states existed under constrained regimes. We also identify what made England historically distinctive: its political system stood out for combining constrained government with high state capacity. This rare combination helps explain the eventual take-off of modern economic growth in England.

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Citation

Henriques, A, K Karaman and N Palma (2025), ‘DP20132 State Capacity and Executive Constraints in Early Modern Europe‘, CEPR Discussion Paper No. 20132. CEPR Press, Paris & London. https://cepr.org/publications/dp20132