Abstract:
The paper examines the legacy of pre-colonial centralization on tax compliance norms of citizens in
contemporary Uganda. Using a regression discontinuity analysis on neighboring ethnic homelands
with different levels of pre-colonial centralization, we find that pre-colonial centralization is correlated
with stronger norm for tax compliance. The result is explained by the legacy of location-specific capacity
of centralized states in upholding authority and a strong social cohesion exhibited through higher
interpersonal trust but not through trust in public institutions.
