Fiscal capacity and executive constraints in early modern Europe

According to the prevailing view of Europe’s political history, constrained government and state capacity developed in tandem. In this study, we reevaluate this perspective by constructing new historical indices for executive constraints and fiscal capacity. 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 fiscal capacity. This rare combination helps explain the eventual take-off of modern economic growth in England.