Recent scholarship contends that ancient Mediterranean economies grew intensively, contrary to standard Malthusian predictions. An explanation is Smithian growth spurred by reductions in transaction costs and increased trade flows. This paper argues that an ancient Greek institution, proxenia,...

What caused the rise of ancient Greek city-states? To answer this question, I develop a model that synthesizes neo-institutionalist, neo-physiocrat, and neo-classical theories of development and advances a trade-based explanation consistent with the writing of classicists. Then, with a new...