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From internal taxes to national regulation: Evidence from a French wine tax reform at the turn of the twentieth century

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  • Franck, Raphaël
  • Johnson, Noel D.
  • Nye, John V.C.
Abstract
The growth of the modern regulatory state is often explained in terms of an unambiguous increase in regulation driven by the actions of central governments. Contrary to this traditional narrative, we argue that as governments increased state capacity, they often strove to weaken the autarkic tendencies of regional laws, thereby promoting greater trade and a more integrated market. To show this, we exploit a quasi-natural experiment generated in the French wine industry by a law implemented on 1 January 1901 which lowered and harmonized various local tax rates.

Suggested Citation

  • Franck, Raphaël & Johnson, Noel D. & Nye, John V.C., 2014. "From internal taxes to national regulation: Evidence from a French wine tax reform at the turn of the twentieth century," Explorations in Economic History, Elsevier, vol. 51(C), pages 77-93.
    • Handle: RePEc:eee:exehis:v:51:y:2014:i:c:p:77-93
    DOI: 10.1016/j.eeh.2013.06.005
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    Cited by:

    1. Guillaume Daudin & Raphaël Franck & Hillel Rapoport, 2019. "Can Internal Migration Foster the Convergence in Regional Fertility Rates? Evidence from 19th Century France," The Economic Journal, Royal Economic Society, vol. 129(620), pages 1618-1692.
    2. repec:hal:pseose:halshs-01321952 is not listed on IDEAS
    3. Noel D., Johnson & Mark, Koyama, 2012. "Standardizing the fiscal state: cabal tax farming as an Intermediate Institution in early-modern England and France," MPRA Paper 40403, University Library of Munich, Germany.
    4. Marino, Maria & Donni, Paolo Li & Bavetta, Sebastiano & Cellini, Marco, 2020. "The democratization process: An empirical appraisal of the role of political protest," European Journal of Political Economy, Elsevier, vol. 63(C).
    5. Guillaume Daudin & Raphaël Franck & Hillel Rapoport, 2016. "The cultural diffusion of the fertility transition: evidence from internal migration in 19 th century France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01321952, HAL.
    6. Michalopoulos, Stelios & Franck, Raphaël, 2018. "Emigration during the French Revolution: Consequences in the Short and Longue Durée," CEPR Discussion Papers 12573, C.E.P.R. Discussion Papers.
    7. Rickard, Bradley J. & Gergaud, Olivier & Ho, Shuay-Tsyr & Hu, Wenjing, 2014. "Trade Liberalization In The Presence Of Domestic Regulations: Impacts Of The Proposed Eu-U.S. Free Trade Agreement On Wine Markets," Working Papers 190670, American Association of Wine Economists.
    8. Raphael Franck & Stelios Michalopoulos, 2017. "Emigration during the French Revolution: Consequences in the Short and Longue Durée," Opportunity and Inclusive Growth Institute Working Papers 2, Federal Reserve Bank of Minneapolis.
    9. Johnson, Noel, 2015. "Taxes, National Identity, and Nation Building: Evidence from France," MPRA Paper 63598, University Library of Munich, Germany.

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