We examine how the supply of talent affected financial development, based on a historical experiment that abruptly changed the allocation of talent in early 20th- century China. A millennium-long meritocratic institution, the imperial civil examination system had firmly linked Chinese...

Can culture mitigate conflicts triggered by economic shocks? In light of the extraordinary emphasis that Confucianism places on subordination and pacifism, we examine its role in possibly attenuating peasant rebellion within the historical context of China (circa 1651–1910). Our analysis finds...