A word first used by Josephus to denote that the Jews were under the direct government of God himself. The nation was in all things subject to the will of their invisible King. All the people were the servants of Jehovah, who ruled over their public and private affairs, communicating to them his will through the medium of the prophets. They were the subjects of a heavenly, not of an earthly, king. They were Jehovah's own subjects, ruled directly by him (Compare 1 Samuel 8:6-9).
These dictionary topics are from M.G. Easton M.A., D.D., Illustrated Bible Dictionary, Third Edition, published by Thomas Nelson, 1897. Public Domain, copy freely.
Easton, Matthew George. "Entry for 'Theocracy'". "Easton's Bible Dictionary".