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Risk Sharing with the Monarch: Contigent Debt and Excusable Defaults in the Age of Philip II, 1556-1598

Drelichman, Mauricio; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2011

Contingent sovereign debt has the potential to create important welfare gains--but actual issuance is rare. Using hand-collected archival data, we examine the first known case of large-scale issuance of contingent sovereign debt in history. Philip II of Spain entered into hundreds of contracts...

Persistent link: https://www.econbiz.de/10009207526

Riding the South Sea Bubble

Temin, Peter; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2004

The efficient markets hypothesis implies that, in the presence of rational investors, bubbles cannot develop. We analyse the trading behaviour of a sophisticated investor, a London goldsmith bank, during the South Sea bubble in 1720. The bank believed the stock to be overvalued, yet found it...

Persistent link: https://www.econbiz.de/10005136583

Credit Rationing and Crowding-Out During the Industrial Revolution: Evidence from Hoare's Bank, 1702-1862

Temin, Peter; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2004

Crowding-out during the British Industrial Revolution has long been one of the leading explanations for slow growth during the Industrial Revolution, but little empirical evidence exists to support it. We argue that examinations of interest rates are fundamentally misguided, and that the...

Persistent link: https://www.econbiz.de/10005504267

Risk sharing with the monarch: contingent debt and excusable defaults in the age of Philip II, 1556–1598

Drelichman, Mauricio; Voth, Hans-Joachim - In: Cliometrica, Journal of Historical Economics and … 9 (2015) 1, pp. 49-75

Contingent sovereign debt can create important welfare gains. Nonetheless, there is almost no issuance today. Using hand-collected archival data, we examine the first known case of large-scale use of state-contingent sovereign debt in history. Philip II of Spain entered into hundreds of...

Persistent link: https://www.econbiz.de/10011128000

Debt Sustainability in Historical Perspective: The Role of Fiscal Repression

Drelichman, Mauricio; Voth, Hans-Joachim - In: Journal of the European Economic Association 6 (2008) 2-3, pp. 657-667

This article examines the debt history of two contenders for European hegemony: 16th-century Spain and 18th-century Britain. We analyze their fiscal behavior using measures of overborrowing and fiscal policy functions. Our results suggest that stringency was not key for Britain's success in...

Persistent link: https://www.econbiz.de/10005549625

Recreating the South Sea Bubble: Lessons from an Experiment in Financial History

Giusti, Giovanni; Noussair, Charles; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2013

Major bubble episodes are rare events. In this paper, we examine what factors might cause some asset price bubbles to become very large. We recreate, in a laboratory setting, some of the specific institutional features investors in the South Sea Company faced in 1720. Several factors have been...

Persistent link: https://www.econbiz.de/10011083988

Financial Repression in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714

Temin, Peter; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2004

If in general, financial deepening aids economic growth, then financial repression should be harmful. We use a natural experiment – the change in the English usury laws in 1714 – to analyse the effects of interest rate restrictions. Based on a sample of individual loan transactions, we...

Persistent link: https://www.econbiz.de/10005662086

Lending to the Borrower from Hell: Debt and Default in the Age of Philip II, 1556-1598

Drelichman, Mauricio; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2009

Philip II of Spain accumulated debts equivalent to 60% of GDP. He also failed to honor them four times. We ask what allowed the sovereign to borrow much while defaulting often. Earlier work emphasized either banker irrationality or the importance of sanctions. Using new archival data, we show...

Persistent link: https://www.econbiz.de/10005792053

Innovation and performance in the long run: the case of Europe

Bogliacino, Francesco - In: ECONOMIA E POLITICA INDUSTRIALE 36 (2009) 4, pp. 179-192

<em>Innovation and performance in the long run: the case of Europe</em> - In this article we present the results of a … recent work on the long-term mechanisms of innovation and performance in Europe which contributes to the European innovation … scoreboard. Data from different waves of the Community Innovation Surveys (CIS) have been used as an instrument for understanding …

Persistent link: https://www.econbiz.de/10008504078

Job creation in business services: Innovation, demand, and polarisation

Bogliacino, Francesco; Lucchese, Matteo; Pianta, Mario - In: Structural Change and Economic Dynamics 25 (2013) C, pp. 95-109

role of innovation, demand, wages and the composition of employment by professional groups. A model is developed and an …

Persistent link: https://www.econbiz.de/10010665925