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Bourbon Reforms and State Capacity in the Spanish Empire

Author

Listed:
  • Chiovelli, Giorgio
  • Fergusson, Leopoldo

    (Universidad de los Andes)

  • Martínez, Luis R.

    (University of Chicago)

  • Torres, Juan David

    (Universidad de los Andes)

  • Valencia Caicedo, Felipe

    (University of British Columbia)

Abstract

We study the fiscal and political consequences of state modernization in the Spanish colonial empire in Latin America. We focus on the introduction of a new corps of provincial governors called intendants in the late 18th century. Leveraging the staggered adoption of the reform and administrative fiscal microdata, we show that the intendancy system sizably increased Crown revenue by strengthening state presence in the periphery and disrupting local elite capture. Politically, the reform reduced rebellions by previously exploited indigenous peoples. However, naming patterns reveal that the intendants heightened anti-Spanish sentiment among Creole elites, plausibly contributing to the nascent independence movement.

Suggested Citation

  • Chiovelli, Giorgio & Fergusson, Leopoldo & Martínez, Luis R. & Torres, Juan David & Valencia Caicedo, Felipe, 2024. "Bourbon Reforms and State Capacity in the Spanish Empire," Documentos CEDE 21106, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:021106
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    File URL: https://repositorio.uniandes.edu.co/bitstreams/handle/1992/74193/dcede2024-11.pdf
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    More about this item

    Keywords

    State Capacity; Taxation; Bureaucracy; Conflict; Elites; Colonialism; Independence; Latin America;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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