You are currently viewing Elite Coalitions, Limited Government, and Fiscal Capacity Development: Evidence from Bourbon Mexico

Elite Coalitions, Limited Government, and Fiscal Capacity Development: Evidence from Bourbon Mexico

Limited government supported by elite coalitions can facilitate the development of fiscal capacity by tying rulers’ hands and enhancing their credibility. This paper presents evidence of the effect of the Mining Tribunal, an institution for the mining elite in late colonial Mexico that credibly constrained the Spanish Crown, on the development of fiscal capacity.