Showing 1 - 10 of 18
In 1500, Europe was composed of hundreds of statelets and principalities, with weak central authority, no monopoly over … the legitimate use of violence, and multiple, overlapping levels of jurisdiction. By 1800, Europe had consolidated into a …
Persistent link: https://www.econbiz.de/10010701797
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/10010851380
This paper presents a case study of a well-informed investor in the South Sea bubble. We argue that Hoare's Bank, a fledgling West End London banker, knew that a bubble was in progress and that it invested knowingly in the bubble; it was profitable to "ride the bubble." Using a unique dataset on...
Persistent link: https://www.econbiz.de/10010851420
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/10010851451
If financial deepening aids economic growth, then financial repression should be harmful. We use a natural experiment in the change in the English usury laws in 1714 to analyze the effects of interest rate restrictions. We use a sample of individual loan transactions to demonstrate how the...
Persistent link: https://www.econbiz.de/10010851479
Analysis of the financial revolution in England has often focused on changes in public debt management and the interest rates paid by the state. Much less is known about the evolution of the financial system providing credit to individual borrowers. We document the transition from goldsmith to...
Persistent link: https://www.econbiz.de/10010547157
This paper presents a case study of a well-informed investor in the South Sea bubble. We argue that Hoare's Bank, a fledgling West End London banker, knew that a bubble was in progress and nonetheless invested in the stock; it was profitable to "ride the bubble." Using a unique dataset on daily...
Persistent link: https://www.econbiz.de/10010547500
I analyze the basis of the market economy in classical Rome, from the perspective of personal-versus-impersonal exchange and focusing on the role of the state in providing market-enabling institutions. I start by reviewing the central conflict in all exchanges between those holding and those...
Persistent link: https://www.econbiz.de/10011196335
Europe and former European colonies grew rapidly after 1800, while other countries grew much later or stagnated. What is less … well-known is that a "First Divergence" preceded the Great Divergence: Western Europe surged ahead of the rest of the world … long before technological growth became rapid. Europe in 1500 was already twice as rich on a per capita basis as Africa …
Persistent link: https://www.econbiz.de/10010851348
Black Death thus set into motion a virtuous circle of higher wages and fertility decline that underpinned Europe’s high per …
Persistent link: https://www.econbiz.de/10011019709