Tax capacity in post-conflict polities

Abstract

What is the relationship between civil war, state capacity, and civil war termination? This paper examines the link between types of civil conflict settlements and taxation capacity by probing post-World War II civil wars. In this paper, we construct a bargaining theory of taxation and conduct relevant empirical analyses to capture the effect of the types of civil conflict settlements on taxation capacity recovery speed. Employing survival analysis, empirical results show that rebel victories and negotiated settlements increase the likelihood of tax capacity recovery rate.