Institutions - the structures of rules and norms governing economic transactions - are widely assigned a central role in economic development. Yet economic history is still dominated by the belief that institutions arise and survive because they are economically efficient. This paper shows that...

Our purpose here is to challenge the big-bang approach to economic history in which some alleged institutional imposition - a deus machine - is claimed to launch a series of new economic behaviors. This so-called prime mover is then carried forward by the inexorable forces of path dependency to...

What is the relationship between state capacity, national identity, and economic development? This paper argues that increases in state capacity can lower the collective action costs associated with political and economic exchange by encouraging the formation of a common identity. This...

We develop a framework that examines the organizational challenges faced by central rulers governing large territories, where administrative power needs to be delegated to local elites. We describe how economic change can motivate rulers to empower different elites and emphasize the interaction...

Names are one of the simplest means of distinguishing between two individuals. They can be considered near universal, and provide a robust means for indirect interaction. Heritable surnames serve both commercial and state based interests. They are a means to enforce primogeniture, and have...

According to economic theory, the clear definition of property rights is essential for well-functioning markets. Comparatively little attention, however, is given to explaining the development of these rights. Economic reasoning suggests that markets themselves call property rights into...

The origin of the modern publicly-held joint-stock company is typically traced to large-scale maritime trading companies in England and the Netherlands in the early 17th century. Highlighting medieval cases in southern Europe, we claim that the joint-stock company likely emerged in several times...

This review article examines the development of state capacity -- the extractive and productive power of states -- in European history. To explain the historical evolution of state capacity, I focus on the role of political innovations. I relate state capacity improvements to long-run economic...

This paper examines recent attempts to rehabilitate pre-modern craft guilds as efficient economic institutions. Contrary to rehabilitation views, craft guilds adversely affected quality, skills, and innovation. Guild rent-seeking imposed deadweight losses on the economy and generated no...

There are two competing accounts for explaining Britain's technological transformation during the Industrial Revolution. One sees it as the inevitable outcome of a largely exogenous increase in the supply of new ideas and ways of thinking. The other sees it as a demand side response to economic...