Can infrastructure investment win "hearts and minds"? We analyze a famous case in the early stages of dictatorship – the building of the motorway network in Nazi Germany. The Autobahn was one of the most important projects of the Hitler government. It was intended to reduce unemployment, and...

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...

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...

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...

Social capital – a dense network of associations facilitating cooperation within a community – typically leads to positive political and economic outcomes, as demonstrated by a large literature following Putnam. A growing literature emphasizes the potentially "dark side" of social capital....

In this paper, we re-examine the effect of smallpox on the height attained by those who suffered from this disease. To this end, we analyse a dataset assembled by Floud, Wachter and Gregory on the height of recruits into the Marine Society, 1770-1873. Using both time series and cross-sectional...

Razzell argues that the quality of smallpox recording in the Marine Society data set is so poor that ‘the impact of smallpox on average height cannot be settled by analysis of the Marine Society data set’. We believe that this grossly overstates the problems of the records, and is based on a...

Between them our critics span the entire range of this Journal’s readership. On the one hand Razzell accuses us of ‘the abandonment of traditional scholarly procedures’. He argues that our plight ‘will provide a salutary lesson for the new economic history. No amount of sophisticated...

What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on collateralized lending, we show that personal experience can affect individual risk-taking and aggregate leverage. When an investor syndicate speculating in Amsterdam in 1772 went...

We analyze the emergence of the first socioeconomic institution in history limiting fertility: west of a line from St. Petersburg to Trieste, the European Marriage Pattern (EMP) reduced childbirths by approximately one-third between the fourteenth and eighteenth century. To explain the rise of...