Using light to gauge state capacity in Ecuador
Too often, we gauge state capacity only at the national level. In the current issue of Governance, Imke Harbers reminds us that there are important variations in state capacity within countries too. Harbers applies an innovative technique to measure differences in state capacity across Ecuador. Nighttime light emissions are used as a measure of economic activity, which is then compared with data on collection of direct taxes. Harbers finds significant variations in capacity, with “clusters of high capacity” around major cities. Data suggests that areas of high capacity are also distinguished by higher levels of satisfaction with government services. Read the article.