nep-his 2014-02-02, 32 papers

NEP: New Economics Papers
Business, Economic and Financial History

Edited by: Bernardo Batiz-Lazo
Bangor University
Issue date: 2014-02-02
Papers: 32

This issue of nep-his is sponsored by Michigan State University, who are inviting applications for ÊSTIMATE – Early Summer Tutorial in Modern Applied Tools of Econometrics. Find out more and apply here: http://inomics.com/node/16862.

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In this issue we have:

  1. Corporate ownership and control in Victorian Britain Acheson, Graeme G.; Campbell, Gareth; Turner, John D.; Vanteeva, Nadia
  2. American Colonial Incomes, 1650-1774 Peter H. Lindert; Jeffrey G. Williamson
  3. Savings and economic growth: A historical analysis of the relationship between savings and economic growth in the Cape Colony economy, 1850 – 1909 Grietjie Verhoef, Lorraine Greyling and John Mwamba
  4. Inequality and biological welfare during the mining boom: Rio Tinto, 1836-1935 Jose Miguel Martínez-Carrión; Miguel Á. Pérez de Perceval Verde; Ángel Pascual Martínez Soto
  5. Does Expansionary Monetary Policy Cause Asset Price Booms? Some Historical and Empirical Evidence Michel Bordo; John Lando-Lane
  6. Причины британской промышленной революции BLINOV, Sergey
  7. Irish land bonds: 1891-1938 Foley-Fisher, Nathan; McLaughlin, Eoin
  8. Coal and the European Industrial Revolution Alan Fernihough; Kevin Hjorstshøj O’Rourke
  9. History, Path Dependence and Development: Evidence from Colonial Railroads, Settlers and Cities in Kenya Remi Jedwab; Edward Kerby; Alexander Moradi
  10. Walter Eucken’s role in the early history of the Mont Pèlerin Society Kolev, Stefan; Goldschmidt, Nils; Hesse, Jan-Otmar
  11. Radio and the rise of Nazi in pre-war Germany Adena, Maja; Enikolopov, Ruben; Petrova, Maria; Santarosa, Veronica; Zhuravskaya, Ekaterina
  12. Debt sustainability and financial crises in South Africa Leroi Raputsoane and Ruthira Naraidoo
  13. Culture and the Spatial Dissemination of Ideas Evidence from Froebel s Kindergarten Movement Falck, Oliver; Bauernschuster, Stefan
  14. The Nature of Civil Conflict Cemal Eren Arbatli; Quamrul Ashraf; Oded Galor
  15. Under the Thumb of History? Political Institutions and the Scope for Action Abhijit Banerjee; Esther Duflo
  16. No longer top of the class: Professorial salaries in the 20th century Sohn, Alexander
  17. Macroeconomic Consequences of Terms of Trade Episodes, Past and Present Tim Atkin; Mark Caputo; Tim Robinson; Hao Wang
  18. Economic Stagnation and Stable Growth: The Persistence and Survival of Growth Regimes under Political Transitions Hakobyan, Lilit
  19. The Trans-Atlantic Slave Trade and Local Political Fragmentation in Africa Nonso Obikili
  20. Management Practices, Relational Contracts, and the Decline of General Motors Susan Helper; Rebecca Henderson
  21. Contraception and the Fertility Transition Bhattacharya, Joydeep; Chakraborty, Shankha
  22. How Johnson Fought the War on Poverty: The Economics and Politics of Funding at the Office of Economic Opportunity Martha J. Bailey; Nicolas J. Duquette
  23. Surviving the Genocide: The Impact of the Rwandan Genocide on Child Mortality Federico Ciani; Gianna Claudia Giannelli
  24. Formosa: tierra prometida-tierra arrasada. La Argentina de los m‡rgenes (1884-1955) Noem’ M. Girbal-Blacha
  25. 1807: Economic shocks, conflict and the slave trade James Fenske; Namrata Kala
  26. Immigration and Structural Change: Evidence from Post-War Germany Braun, Sebastian; Kvasnicka, Michael
  27. Auge y estancamiento de Japón (1955-2008). Una explicación marxista. Maito, Esteban Ezequiel
  28. Keynes’s General Theory, Treatise on Money and Tract on Monetary Reform: Different Theories, Same Methodological Approach? Carabelli, Anna Maria; Cedrini, Mario Aldo
  29. The Demand for Tobacco in Post-Unification Italy Carlo Ciccarelli; Gianni De Fraja
  30. Nonprofit Roles in For-profit Firms: The Institutionalization of Corporate Philanthropy in France Gautier, Arthur; Pache , Anne-Claire; Chowdhury, Imran
  31. Testing for common cycles in non-stationary VARs with varied frecquency data Hecq A.W.; Urbain J.R.Y.J.; Götz T.B.
  32. Trade policy instruments over time Bown, Chad P.

Contents.

  1. Corporate ownership and control in Victorian Britain
    Date: 2014
    By: Acheson, Graeme G.
    Campbell, Gareth
    Turner, John D.
    Vanteeva, Nadia
    URL: http://d.repec.org/n?u=RePEc:zbw:eabhps:1402&r=his
    Using ownership and control data for 890 firm-years, this paper examines the concentration of capital and voting rights in British companies in the second half of the nineteenth century. We find that both capital and voting rights were diffuse by modern-day standards. This implies that ownership was separated from control in the UK much earlier than previously thought, and given that it occurred in an era with weak shareholder protection law, it undermines the influential law and finance hypothesis. We also find that diffuse ownership is correlated with large boards, a London head office, non-linear voting rights, and shares traded on multiple markets. —
    Keywords: corporate ownership and control,law and finance hypothesis,shareholder protection law,British financial history
    JEL: G32 K22 N24
  2. American Colonial Incomes, 1650-1774
    Date: 2014-01
    By: Peter H. Lindert
    Jeffrey G. Williamson
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19861&r=his
    New data now allow conjectures on the levels of real and nominal incomes in the thirteen American colonies. New England was the poorest region, and the South was the richest. Colonial per capita incomes rose only very slowly, and slowly for five reasons: productivity growth was slow; population in the low-income (but subsistence-plus) frontier grew much faster than that in the high-income coastal settlements; child dependency rates were high and probably even rising; the terms of trade was extremely volatile, presumably suppressing investment in export sectors; and the terms of trade rose very slowly, if at all, in the North, although faster in the South. All of this checked the growth of colony-wide per capita income after a 17th century boom. The American colonies led Great Britain in purchasing power per capita from 1700, and possibly from 1650, until 1774, even counting slaves in the population. That is, average purc! hasing power in America led Britain early, when Americans were British. The common view that American per capita income did not overtake that of Britain until the start of the 20th century appears to be off the mark by two centuries or longer.
    JEL: N11 N31 O47 O51
  3. Savings and economic growth: A historical analysis of the relationship between savings and economic growth in the Cape Colony economy, 1850 – 1909
    Date: 2014
    By: Grietjie Verhoef, Lorraine Greyling and John Mwamba
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:408&r=his
    The sub-optimal savings propensity in South Africa the past three decades causes concern for the ability of the country to support its economic development. An historical analysis of the development of the savings’ trends in South Africa may assist in understanding the historical roots of the phenomenon. Apart from general descriptions of the nature of economic activity in the Cape Colony very little is known about the role financial sector development and savings played in the growing colonial economy. This paper explores the performance of the economy of the Cape Colony between 1850 and 1909, through the business cycles, financial sector stability, the nature and extent of economic activity and seeks to explain the relationship between savings and economic growth. The question is whether the general view that ‘financial development is robustly growth promoting’ can be substantiated in the last half ! of the nineteenth century Cape Colony? It contributes to the economic history literature on the colonial past of South Africa by using newly compiled data on the GDP of the Cape Colony during the last half of the nineteenth century. The paper finds that despite the expectations in the literature that financial deepening contributes to economic growth; the Cape Colony did not display such causal relationship between savings and economic growth in the period under review. The paper shows the different forms of savings in the colony and the trend of savings behavior in the period amidst the development of a relatively robust financial sector.
    Keywords: Cape Colony, economic growth, financial deepening, gross domestic product, savings
    JEL: N27
  4. Inequality and biological welfare during the mining boom: Rio Tinto, 1836-1935
    Date: 2014-01
    By: Jose Miguel Martínez-Carrión (Universidad de Murcia, Murcia, Spain)
    Miguel Á. Pérez de Perceval Verde (Universidad de Murcia, Murcia, Spain)
    Ángel Pascual Martínez Soto (Universidad de Murcia, Murcia, Spain)
    URL: http://d.repec.org/n?u=RePEc:ahe:dtaehe:1401&r=his
    This paper explores the impact of the mining boom in the biological standard of living and inequality in Rio Tinto, the main copper basin of Spain and one of the largest in the world. We use data height of military recruits in two municipalities: Zalamea Real and Nerva between 1856 and 1935 (1836-1914 cohorts). The results show that the height deteriorated in the 1850-1870 cohorts and increased inequality, seeing themselves affected adolescents from 1870 to 1890, when the British firm took its biggest push. During the mining fever and heavy immigration, the cohorts of the late nineteenth century increased the height, but the gap between natives and immigrants and among illiterate and literate also widened. The height of the cohorts of the early twentieth century stagnated due to the business downturn following the increase of competitiveness.
    Keywords: Biological welfare, mining, Río Tinto, inequality
    JEL: I12 J24 N13 D63
  5. Does Expansionary Monetary Policy Cause Asset Price Booms? Some Historical and Empirical Evidence
    Date: 2013-12
    By: Michel Bordo
    John Lando-Lane
    URL: http://d.repec.org/n?u=RePEc:chb:bcchwp:710&r=his
    In this paper we investigate the relationship between loose monetary policy, low inflation, and easy bank credit with asset price booms. Using a panel of up to 18 OECD countries from 1920 to 2011 we estimate the impact that loose monetary policy, low inflation, and bank credit has on house, stock and commodity prices. We review the historical narratives on asset price booms and use a deterministic procedure to identify asset price booms for the countries in our sample. We show that “loose” monetary policy – that is having an interest rate below the target rate or having a growth rate of money above the target growth rate – does positively impact asset prices and this correspondence is heightened during periods when asset prices grew quickly and then subsequently suffered a significant correction. This result was robust across multiple asset prices and different specifications and was present even when we controll! ed for other alternative explanations such as low inflation or “easy” credit.
  6. Причины британской промышленной революции
    Date: 2014-01-28
    By: BLINOV, Sergey
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:53239&r=his
    The Industrial Revolution happened in Britain because by the 19-th century the eternal problem faced by humankind, i.e. the problem of hunger, had been resolved on a local scale. Thanks to a unique combination of factors, Britain just overtook the other West European countries (for a short period of time in historical terms) in the understanding that the value of food “depreciates”.
    Keywords: British Industrial Revolution, malthusian trap, international trade
    JEL: F10 F16 N10 O14 O40 Q17
  7. Irish land bonds: 1891-1938
    Date: 2014
    By: Foley-Fisher, Nathan
    McLaughlin, Eoin
    URL: http://d.repec.org/n?u=RePEc:zbw:eabhps:1401&r=his
    This paper introduces a new database on Irish land bonds listed on the Dublin Stock Exchange from 1891 to 1938. It outlines the nature of these bonds and presents data on their size, liquidity and market returns. These government-guaranteed bonds arose during a period when the possibility of Irish secession from the United Kingdom appeared ever more likely, and were used to finance the transfer of land ownership from landlords to tenants in Ireland (North and South). Movements in the prices of these bonds can help financial historians understand how financial markets responded to events in the early economic and political history of the Irish Free State, including Irish partition, Independence, Civil War and de facto default. Additionally, understanding these issues has contemporary relevance for regions in Spain (Catalonia, Euskadi), Great Britain (Scotland) and Belgium (Flanders). —
    Keywords: Irish financial history,land reform,land bonds,Dublin Stock Exchange
    JEL: N23 N24 N53 N54 G15
  8. Coal and the European Industrial Revolution
    Date: 2014-01-22
    By: Alan Fernihough (Institute for International Integration Studies, Trinity College, Ireland)
    Kevin Hjorstshøj O’Rourke (All Souls College, Oxford, UK)
    URL: http://d.repec.org/n?u=RePEc:nuf:esohwp:_124&r=his
    We examine the importance of geographical proximity to coal as a factor underpinning comparative European economic development during the Industrial Revolution. Our analysis exploits geographical variation in city and coalfield locations, alongside temporal variation in the availability of coal-powered technologies, to quantify the effect of coal availability on historic city population sizes. Since we suspect that our coal measure could be endogenous, we use a geologically derived measure as an instrumental variable: proximity to rock strata from the Carboniferous era. Consistent with traditional historical accounts of the Industrial Revolution, we find that coal exhibits a strong influence on city population size from 1800 onward. Counterfactual estimates of city population sizes indicate that our estimated coal effect explains at least 60% of the growth in European city populations from 1750 to 1900. This result is ro! bust to a number of alternative modelling assumptions regarding missing historical population data, spatially lagged effects, and the exclusion of the United Kingdom from the estimation sample.
    Keywords: Coal, Historical Population, Geography
    JEL: N13 N53 O13 O14 J10
  9. History, Path Dependence and Development: Evidence from Colonial Railroads, Settlers and Cities in Kenya
    Date: 2014
    By: Remi Jedwab
    Edward Kerby
    Alexander Moradi
    URL: http://d.repec.org/n?u=RePEc:csa:wpaper:2014-04&r=his
    Little is known about the extent and forces of urban path dependence in developing countries. Railroad construction in colonial Kenya provides a natural experiment to study the emergence and persistence of this spatial equilibrium. Using new data at a fine spatial level over one century shows that colonial railroads causally determined the location of European settlers, which in turn decided the location of the main cities of the country at independence. Railroads declined and settlers left after independence, yet cities persisted. Their early emergence served as a mechanism to coordinate investments in the post-independence period, yielding evidence for how path dependence influences development.
    Keywords: Path Dependence; Urbanisation; Transportation; Colonialism
    JEL: R11 R12 R40 O18 O33 N97
  10. Walter Eucken’s role in the early history of the Mont Pèlerin Society
    Date: 2014
    By: Kolev, Stefan
    Goldschmidt, Nils
    Hesse, Jan-Otmar
    URL: http://d.repec.org/n?u=RePEc:zbw:aluord:1402&r=his
    In the history of economic thought Walter Eucken is mostly known for his impact in establishing the Social Market Economy in post-war Germany. Even though there is a growing interest in his ideas especially from an Austrian and a Constitutional Economics perspective, his influence on the discussions within neoliberalism and, more specifically, his impact in the course of the foundation of the Mont Pèlerin Society (MPS) are not yet widely considered. In this paper we attempt to show that Eucken was very influential in the formation of the MPS and that German ordoliberalism had a significant imprint on the early history of the society. It is primarily Eucken’s correspondence with F. A. Hayek and Wilhelm Röpke in this context which we present and analyze, complementing it with some hypotheses about early influences between Eucken and Hayek in terms of methodology and epistemology. Subsequently we show, by regarding the fi! rst MPS meetings between 1947 and 1949 (general and organizational), that there was – even at this early stage in the development of the MPS – a widening gap between a Continental European and an Anglo-Saxon understanding of neoliberalism, despite the personal friendships and high collegial respect especially between Eucken, Hayek and Röpke; Ludwig von Mises playing a special role in this setting. We illustrate this development also by discussing personal memories of Leonhard Miksch, a student of Eucken and a participant of the MPS meeting in 1949, recorded in his so far unpublished diary. —
    Keywords: Neoliberalism,Mont Pèlerin Society,Ordoliberalism,History of Economic Thought,Political and Economic Order,Role of Economists
    JEL: A11 B25 B31 B41 H11
  11. Radio and the rise of Nazi in pre-war Germany
    Date: 2013
    By: Adena, Maja
    Enikolopov, Ruben
    Petrova, Maria
    Santarosa, Veronica
    Zhuravskaya, Ekaterina
    URL: http://d.repec.org/n?u=RePEc:zbw:vfsc13:79876&r=his
    How far can media undermine democratic institutions and how persuasive can it be in assuring public support for dictator policies? We study this question in the context of Germany before World War II, between 1929 and 1939. First, we estimate the impact of radio signal on voting for the Nazi party before and after Nazi got control over the content of the broadcast. Prior to Hitler s appointment as chancellor, the radio, broadcasting cultural programs and some political news with an anti-Nazi slant, had a substantial negative effect on voting for the Nazi party. This negative effect was fully undone in just one month before the last competitive pre-war election following Hitler s appointment in 1933, which resulted in the change of radio content to heavy pro-Nazi propaganda. In the last few months that Germany remained democracy, the persuasion power of pro-Nazi propaganda was smaller than that of the anti-Nazi radio. Sec! ond, we examine the impact of the radio after Nazi fully consolidated power. Radio propaganda helped Nazi to enroll new party members and encouraged denunciations of Jews and other open expressions of anti-Semitism. Radio was most effective as propaganda tool when combined with other tools, such as Hitler s speeches, and when the message was more aligned with listeners priors as measured by historical variation in anti-Semitism. —
    JEL: D72 L82 P26
  12. Debt sustainability and financial crises in South Africa
    Date: 2014
    By: Leroi Raputsoane and Ruthira Naraidoo
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:403&r=his
    This study assesses debt sustainability in South Africa allowing for possible nonlinearities in the form of threshold behaviour by fiscal authorities. A long historical data series on the debt-to-GDP ratio and models with fixed and time-varying thresholds allowing the level of debt to vary relative to its recent history and the occurrence of financial crises are used in the analysis. First, the results reveal that fiscal consolidation occurs at a much lower debt-to-GDP ratio of 46 percent in the period 1946 to 2010 compared to 65 percent in the period 1865 to 1945. Secondly, the results provide evidence of a statistically insignificant fiscal consolidation below these threshold levels. Thirdly, the results reveal that fiscal consolidation occur at a higher debt-to-GDP ratio during financial crises periods.
    Keywords: Debt sustainability, thresholds, financial crises
    JEL: C22 C51 E62 H63
  13. Culture and the Spatial Dissemination of Ideas Evidence from Froebel s Kindergarten Movement
    Date: 2013
    By: Falck, Oliver
    Bauernschuster, Stefan
    URL: http://d.repec.org/n?u=RePEc:zbw:vfsc13:79704&r=his
    Friedrich Froebel, a German pedagogue, established the first kindergarten worldwide in Thuringia in 1839. We study the spatial dissemination of the kindergarten movement in Germany in the 19th and beginning of the 20th century. Spatial dissemination can be explained by the cultural proximity, measured by dialect similarity at the end of the 19th century, to Froebel s place of activity. We further show that the spatial pattern of child care use is highly persistent over time. End of 19th century cultural proximity to Froebel s place of activity can explain the spatial pattern of child care use in the 1990s and 2000s. —
    JEL: N33 J13 Z13
  14. The Nature of Civil Conflict
    Date: 2013
    By: Cemal Eren Arbatli
    Quamrul Ashraf
    Oded Galor
    URL: http://d.repec.org/n?u=RePEc:bro:econwp:2013-15&r=his
    This research empirically establishes that the emergence, prevalence, and recurrence of civil conflict in the modern era reflect the long shadow of prehistory. Exploiting variations across contemporary national populations, it demonstrates that genetic diversity, as determined pre- dominantly tens of thousands of years ago, has contributed significantly to the frequency, incidence, and onset of both overall and ethnic civil conflicts over the last half century, accounting for a large set of geographical and institutional correlates of civil conflict, as well as measures of economic development. These findings arguably reflect the adverse effect of genetic diversity on interpersonal trust and cooperation, the potential impact of genetic diversity on income inequality, the potential association between genetic diversity and divergence in preferences for public goods and redistributive policies, and the contribution of gene! tic diversity to the degree of fractionalization and polarization across ethnic and linguistic groups in the population
    Keywords: #
  15. Under the Thumb of History? Political Institutions and the Scope for Action
    Date: 2014-01
    By: Abhijit Banerjee
    Esther Duflo
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19848&r=his
    This paper discusses the two leading views of history and political institutions. For some scholars, institutions are mainly products of historical logic, while for others, accidents, leaders, and decisions have a significant impact. We argue that while there is clear evidence that history matters and has long-term effects, there is not enough data to help us distinguish between the two views. Faced with this uncertainty, what is a social scientist to do? We argue that given the possibility that policy decisions indeed make a difference, it makes sense to assume they do and to try to improve policymaking.
    JEL: N30 O1
  16. No longer top of the class: Professorial salaries in the 20th century
    Date: 2013
    By: Sohn, Alexander
    URL: http://d.repec.org/n?u=RePEc:zbw:vfsc13:79966&r=his
    Using individual income data from university archives, we look at the development of professorial salaries over a time-span covering the Kaiserreich, the Weimar Republic, the Third Reich as well as the Federal Republic of Germany. We find that relative salaries have fallen dramatically, both with respect to other highly qualified labour and to the average income. We also find that inter-discipline dispersion among professorial salaries has decreased and that conversely to today it was professors in the social sciences rather than the natural sciences who earned the most. —
    JEL: J24 N34 J45
  17. Macroeconomic Consequences of Terms of Trade Episodes, Past and Present
    Date: 2014-01
    By: Tim Atkin (Reserve Bank of Australia)
    Mark Caputo (Reserve Bank of Australia)
    Tim Robinson (Reserve Bank of Australia)
    Hao Wang (Reserve Bank of Australia)
    URL: http://d.repec.org/n?u=RePEc:rba:rbardp:rdp2014-01&r=his
    The early 21st century saw Australia experience its largest and longest terms of trade boom. This paper places this recent boom in a long-run historical context by comparing the current episode with earlier cycles. While similarities exist across most episodes, current macroeconomic policy frameworks and settings are quite different to those of the past. This mitigated the broader macroeconomic consequences of the upswing and as the terms of trade decline may do likewise.
    Keywords: commodity prices; terms of trade; macroeconomic policy
    JEL: E30 E60 N17
  18. Economic Stagnation and Stable Growth: The Persistence and Survival of Growth Regimes under Political Transitions
    Date: 2014-01-23
    By: Hakobyan, Lilit (Department of Economics, Umeå School of Business and Economics)
    URL: http://d.repec.org/n?u=RePEc:hhs:umnees:0873&r=his
    This paper analyses the survival of four different growth regimes conditional on political regime transitions that occurred during the first or prior year of the economic regime. The results suggest that in countries with no history of military dictatorship (MD), the episodes of fast-growing regimes initiated by political democratisation have an approximately 40% lower hazard of termination than the miracle growth episodes that were not started by political transitions. This finding does not hold in countries in which the consolidation of democracy is complicated by the historical role played by the army in the governing process. Additional analyses are carried out for the effect of political transitions on the duration of ongoing economic regimes. The data does not support the argument that “order” and the “rule of law” promote economic growth under more authoritarian regimes, which commonly feature authoritaria! n leaders during times of economic crisis. Political transitions of both directions under an economic crisis render the ongoing economic regime more durable. In contrast political transitions (of both directions) seem to be economically more efficient under the regime of stagnation.
    Keywords: Heckman correction for selection bias; economic growth regimes; survival analyses; political transition
    JEL: C21 O43 O57 P16
  19. The Trans-Atlantic Slave Trade and Local Political Fragmentation in Africa
    Date: 2014
    By: Nonso Obikili
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:406&r=his
    I examine the possibility that the trans-Atlantic slave trades influenced the political institutions of villages and towns in precolonial Africa. Using anthropological data, I show that villages and towns of ethnic groups with higher slave exports were more politically fragmented during the precolonial era. I use instrumental variables to show that the relationship is at least partly causal. I argue this fragmentation is important for relative economic development because it still influences political institutions today. I support this argument by using more contemporary data to show that areas with higher precolonial political fragmentation have a higher incidence of bribery.
    Keywords: Trans-Atlantic, Slave trade, Poltical
  20. Management Practices, Relational Contracts, and the Decline of General Motors
    Date: 2014-01
    By: Susan Helper
    Rebecca Henderson
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19867&r=his
    General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the US market fell from 62.6 to 19.8 percent, and in 2009 the firm went bankrupt. In this paper we argue that the conventional explanation for this decline – namely high legacy labor and health care costs – is seriously incomplete, and that GM’s share collapsed for many of the same reasons that many of the other highly successful American firms of the 50s, 60s and 70s were forced from the market, including a failure to understand the nature of the competition they faced and an inability to respond effectively once they did. We focus particularly on the problems GM encountered in developing the relational contracts essential to modern design and manufacturing. We discuss a number of possible causes for these difficulties: including GM’s historical practice of treating both its ! suppliers and its blue collar workforce as homogeneous, interchangeable entities, and its view that expertise could be partitioned so that there was minimal overlap of knowledge amongst functions or levels in the organizational hierarchy and decisions could be made using well-defined financial criteria. We suggest that this dynamic may have important implications for our understanding of the role of management in the modern, knowledge based firm, and for the potential revival of manufacturing in the United States.
    JEL: J24 L2 L21 L23
  21. Contraception and the Fertility Transition
    Date: 2014-01-22
    By: Bhattacharya, Joydeep
    Chakraborty, Shankha
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:53129&r=his
    Three profound changes – the mortality, fertility and contraception transitions – characterized the Victorian era in England. Economists, following Becker (1960), focus on the first two and underplay the third by assuming couples can achieve their fertility target at no cost. The historical experience from Victorian England is at odds with this view of costless fertility regulation. We incorporate costly fertility limitation into the Becker paradigm: in our story, the mortality transition spurs on a contraception revolution which, in turn, makes it possible for the fertility transition to arrive. In the model, generationally-linked households with heterogeneous income choose between two contraception strategies, one “traditional”, the other “modern”. The modern comes with a higher fixed cost (reflecting social opposition and informational barriers characteristic of the times), but has a lower variable cost when it co! mes to averting childbirths. While the initial adopters of the modern technology are the rich — those unfazed by the higher fixed cost — eventually everyone switches so as to economize on the variable cost. What hastens the switch is the decline in child mortality. Increased adoption of modern contraception unleashes a social diffusion process causing more people to switch, lowering fertility further and across all socioeconomic groups. The model is consistent with broad time-series and cross-sectional patterns of the English fertility transition.
    Keywords: child mortality, fertility, demographic transition, contraception
    JEL: I12 J11 O40
  22. How Johnson Fought the War on Poverty: The Economics and Politics of Funding at the Office of Economic Opportunity
    Date: 2014-01
    By: Martha J. Bailey
    Nicolas J. Duquette
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19860&r=his
    This paper presents a quantitative analysis of the geographic distribution of spending through the 1964 Economic Opportunity Act (EOA). Using newly assembled state and county-level data, the results show that the Johnson administration systematically directed funding toward poorer and more nonwhite areas. In contrast to the distribution of New Deal spending, short-term political considerations appear to have played a minor role in distributing EOA funds. Choosing to fight poverty and discrimination rather than playing politics may help explain some of the immediate backlash against the War on Poverty programs. It also suggests that the implementation of the War on Poverty may play an important role in explaining why it is remembered as a failure.
    JEL: H50 J08 N12
  23. Surviving the Genocide: The Impact of the Rwandan Genocide on Child Mortality
    Date: 2013
    By: Federico Ciani
    Gianna Claudia Giannelli
    URL: http://d.repec.org/n?u=RePEc:cca:wchild:20&r=his
    Between April and July 1994 Rwanda experienced a tremendous wave of inter-ethnic violence that caused at least 500,000 deaths. Combining birth history data drawn from the 2000 Rwanda Demographic and Health Survey with prefecture-level information on the intensity of the conflict, we examine the impact of the civil war on infant and child mortality. War exposure is measured exploiting the differential effects of timing of birth and genocide intensity at the household and geographic level. Considering both in utero and postnatal war exposure, we estimate discrete time proportional hazard models of child mortality for the exposed and the unexposed birth cohorts. We find large positive effects of exposure to the conflict on infant and child mortality. Moreover, restricting our sample to the survivors, we find that child mortality is significantly impacted by war exposure, increasing the hazard rate by nearly 6 percentage poi! nts on average. This result holds true also for children who were only exposed while in utero. This evidence points to the existence of long-term disruptive effects on the cohorts of children exposed to the violence.
    Keywords: genocide, child mortality, child health, survival analysis, Rwanda
    JEL: I20 J13 O12 Z13
  24. Formosa: tierra prometida-tierra arrasada. La Argentina de los m‡rgenes (1884-1955)
    Date: 2014-01
    By: Noem’ M. Girbal-Blacha
    URL: http://d.repec.org/n?u=RePEc:seh:wpaper:1401&r=his
    In times of Modern Argentina (1880-1930) marginality is part of the agro- export model; structured around Buenos Aires port and the Pampas livestock-cereal, the recipient of massive immigration, growing urbanization and foreign investment concentration. Marginality does not always mean isolation. This is the case of Argentinean Gran Chaco situated in northeastern Argentina, crossed by 3 railways and major waterways, which communicate with the powerful metropolitan littoral. Formosa, bordering Paraguay, is still a postponed territory in the Argentinean Gran Chaco. The land tenure system goes with desertification. Natural resources preservation together with heterogeneous productive models joins the scarce technology. Livestock and deforestation turned the promised land into a devastated land, full of precarious squatters, short term exploitations and soil intensive use. This historical study refers to a specific case of o! ccupation and construction of the space, interrelating with national government alternatives and the logical territory together with its heterogeneous people and precarious economy, without a local rooted bourgeoisie or obtained profit reinvestment. The aim is to describe and interpret the survival conditions in times when Formosa was a National Territory.
    Keywords: Formosa, Argentine, Land tenure, Desertificacion
    JEL: N16 N56 N96 Q15
  25. 1807: Economic shocks, conflict and the slave trade
    Date: 2014
    By: James Fenske
    Namrata Kala
    URL: http://d.repec.org/n?u=RePEc:csa:wpaper:2014-02&r=his
    Suppression of the slave trade after 1807 increased the incidence of conflict between Africans. We use geo-coded data on African conflicts to uncover a discontinuous increase in conflict after 1807 in areas affected by the slave trade. In West Africa, the slave trade declined. This empowered interests that rivaled existing authorities, and political leaders resorted to violence in order to maintain their influence. In West-Central and South-East Africa, slave exports increased after 1807 and were produced through violence. We validate our explanation using Southwestern Nigeria and Eastern South Africa as examples.
  26. Immigration and Structural Change: Evidence from Post-War Germany
    Date: 2013
    By: Braun, Sebastian
    Kvasnicka, Michael
    URL: http://d.repec.org/n?u=RePEc:zbw:vfsc13:79864&r=his
    Does immigration accelerate sectoral change towards high-productivity sectors? This paper uses the mass displacement of ethnic Germans from Eastern Europe to West Germany after World War II as a natural experiment to study this question. A simple two-sector specific factors model, in which moving costs prevent the marginal product of labor to be equalized across sectors, predicts that immigration boosts output per worker by expanding the high-productivity sector, but decreases output per worker within a sector. Using German district-level data from before and after the war, we find empirical support for these predictions. —
    JEL: J61 F22 N34
  27. Auge y estancamiento de Japón (1955-2008). Una explicación marxista.
    Date: 2014-01
    By: Maito, Esteban Ezequiel
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:53102&r=his
    The present study analyzes the economic Japanese performance according to Marxist political economy. In that sense, an estimation of the valorization process categories is made: profit rate, surplus rate, value capital composition and turnover speed. The Japanese economy is passing through a long period of two decades with low growth related to the world and Japan´s own recent history. There is a deep and constant fall in the profit rate, and its low levels since the nineties keeps Japanese capitalism in the current standstill situation. This work also presents data that refute “profit squeeze” explanations of the profitability fall, reinforcing those related to capital over-accumulation, due to increasing fixed capital to labor force. “Profit squeeze” theories ignore both the basic foundations of the wage income participation and the fixed capital consumption tendency to growth, as a particular income expressio! n of fixed capital relative increase.
    Keywords: Profit rate – Turnover speed – Surplus rate – Income distribution – Capital composition – Japan
    JEL: G01 O11 O40 O53 P16
  28. Keynes’s General Theory, Treatise on Money and Tract on Monetary Reform: Different Theories, Same Methodological Approach?
    Date: 2013-10
    By: Carabelli, Anna Maria
    Cedrini, Mario Aldo (University of Turin)
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201344&r=his
    In trying to assess the content and significance of Keynes’s attempted revolution in economic methodology, historians have almost exclusively focused on the General Theory. By highlighting the legacy of the Treatise on Probability for Keynes’s economic writings, this paper provides evidence of strong methodologic al continuity between the Tract on Monetary Reform, the Treatise on Money and the General Theory, despite radical differences in the theories. We argue that the novelty of Keynes’s approach lies in offering a method of analysis requiring cooperation on the part of the reader, in the effort to tackle the complexity of the economic material.
  29. The Demand for Tobacco in Post-Unification Italy
    Date: 2014-01
    By: Carlo Ciccarelli (University of Rome "Tor Vergata")
    Gianni De Fraja (Nottingham School of Economics)
    URL: http://d.repec.org/n?u=RePEc:bdi:workqs:qse_31&r=his
    This paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel dataset of annual consumption in the 69 Italian provinces from 1871 to 1913, which is then used to estimate the demand for tobacco products. We find support for the Becker and Murphy (1988) rational addiction model. We also find that, in the period considered, tobacco was a normal good in Italy: aggregate tobacco consumption increased with income. Subsequently, we consider separately the four types of products which comprise aggregate tobacco (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor in the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack cigarette rolling machine in the early 1890s did not coincide with changes in the structure of the demand for tobacco, suggesting cost! -driven technological change.
    Keywords: smoking, Italian Kingdom, rational addiction, panel data
    JEL: D11 N33 I18
  30. Nonprofit Roles in For-profit Firms: The Institutionalization of Corporate Philanthropy in France
    Date: 2013-12
    By: Gautier, Arthur (ESSEC Business School)
    Pache , Anne-Claire (ESSEC Business School)
    Chowdhury, Imran (Pace University – Lubin School of Business)
    URL: http://d.repec.org/n?u=RePEc:ebg:essewp:dr-13019&r=his
    In this research project we aim to understand the role of institutional entrepreneurship across multiple levels – field, organization, and micro levels – in the institutionalization of a new professional role within organizations. Specifically, we study the rise of the "corporate philanthropy manager," a position inspired by nonprofit values and goals which developed within large French corporations during the period 1979 to 2011. The process of creating, maintaining and legitimizing this new role – philanthropy as a new business function – is the central focus of our study, and we explore how elements of the nonprofit and for-profit worlds came together in this new role, as well as the role of various actors across multiple levels in influencing this combination.
    Keywords: Corporate philanthropy; Professions; Institutional change; Institutional entrepreneurship; Institutional work
    JEL: D64
  31. Testing for common cycles in non-stationary VARs with varied frecquency data
    Date: 2013
    By: Hecq A.W.
    Urbain J.R.Y.J.
    Götz T.B. (GSBE)
    URL: http://d.repec.org/n?u=RePEc:unm:umagsb:2013002&r=his
    This paper proposes a new way for detecting the presence of common cyclical featureswhen several time series are observed/sampled at different frequencies, hence generalizingthe common-frequency approach introduced by Engle and Kozicki 1993 and Vahid andEngle 1993. We start with the mixed-frequency VAR representation investigated in Ghysels2012 for stationary time series. For non-stationary time series in levels, we showthat one has to account for the presence of two sets of long-run relationships. The First setis implied by identities stemming from the fact that the differences of the high-frequencyI1 regressors are stationary. The second set comes from possible additional long-run relationshipsbetween one of the high-frequency series and the low-frequency variables. Ourtransformed VECM representations extend the results of Ghysels 2012 and are very importantfor determining the correct set of variables to be used in a s! ubsequent commoncycle investigation. This has some empirical implications both for the behavior of the teststatistics as well as for forecasting. Empirical analyses with the quarterly real GNP andmonthly industrial production indices for, respectively, the U.S. and Germany illustrate ournew approach. This is also investigated in a Monte Carlo study, where we compare our proposedmixed-frequency models with models stemming from classical temporal aggregationmethods.
    Keywords: Economic History: Transport, Trade, Energy, Technology, and Other Services: Asia including Middle East; Regional and Urban History: General; Microeconomic Analyses of Economic Development;
    JEL: N90 O12 N75
  32. Trade policy instruments over time
    Date: 2014-01-01
    By: Bown, Chad P.
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6757&r=his
    This paper surveys political-economic research on the variety of instruments that governments use to conduct international trade policy. It presents key insights on the relationships between instruments such as tariffs, quotas, voluntary export restraints, and other nontariff barriers, as well as the ebb and flow of the national use of temporary trade barriers such as antidumping, countervailing duties, and safeguards. The survey examines trends in use of these trade policy instruments over recent history; and it reviews the major theoretical and empirical explanations behind, and interrelationships between, their uses. Finally, the paper highlights potential institutional impacts of the General Agreement on Tariffs and Trade (GATT) and subsequent World Trade Organization (WTO) on choice of policy instruments, as well as how multilateral, unilateral, and preferential tariff liberalization may introduce political-economic! shocks and affect incentives over time for how governments rely on different instruments.
    Keywords: Free Trade,Trade Law,Trade Policy,International Trade and Trade Rules,Economic Theory&Research

nep-his Past and Present: Brazil’s Unfulfilled Expectation

This week on the nep-his blog, Sebastian Fleitas comments on

Industrial Growth and Structural Change: Brazil in a Long-Run Perspective

by Dante Aldrighi (aldrighi @ usp.br) and Renato P. Colistete (rcolistete @ usp.br)

Please follow us at

http://www.nephis.org

I also wanted to call your attention to this most interesting resource. It is a MOOC on the History of American Capitalism:

American Capitalism: A History
Louis Hyman and Edward Baptist
https://www.edx.org/course/cornellx/cornellx-hist1514x-american-capitalism-1307

Finally, a heads up that you can expect a change in the format of weekly reports any time soon. This as NEP has formed a joint venture with INOMICS.

Best wishes

Bernardo


nep-his 2014-01-24, 17 papers

NEP: New Economics Papers
Business, Economic and Financial History

Edited by: Bernardo Batiz-Lazo
Bangor University
Issue date: 2014-01-24
Papers: 17

Note: Access to full contents may be restricted.
NEP is sponsored by the School of Economics and Finance of Victoria University of Wellington.
To subscribe/unsubscribe follow this link http://lists.repec.org/mailman/options/nep-his

In this issue we have:

  1. Recovery from Financial Crises: Evidence from 100 Episodes Carmen M. Reinhart; Kenneth S. Rogoff
  2. Where Was the Wealth of the Nation? Measuring Swedish Capital for the 19th and 20th Centuries Lindmark, Magnus; Andersson, Lars Fredrik
  3. Capitalist transformation without political participation: German capitalism in the first half of the 19th century Wegner, Gerhard
  4. Coal and the European Industrial Revolution Alan Fernihough; Kevin Hjortshøj O’Rourke
  5. Two Centuries of International Migration Ferrie, Joseph; Hatton, Timothy J.
  6. Milton Friedman: Constructing an Anti-Keynes Craig Freedman; Geoff C. Harcourt; Peter Kriesler; John Nevilet
  7. Observations on the Centennial of the Federal Reserve System The Philadelphia Fed Policy Forum: "The History of Central Banking in the United States," December 6, 2013 Plosser, Charles I.
  8. The Evolution of Bank Supervision: Evidence from U.S. States Mitchener, Kris James
  9. Lange’s 1938 Model: Dynamics and the "Optimum propensity to consume" Michaël Assous; Roberto Lampa
  10. State Capacity and Economic Development: A Network Approach Daron Acemoglu; Camilo García-Jimeno; James A. Robinson
  11. The determinants of public spending: a survey in a methodological perspective Facchini, Francois
  12. On the stationarity of per capita carbon dioxide emissions over a century Maria Christisou; Theodore Panagiotidis; Abhijit Sharma
  13. Why Has U.S. Policy Uncertainty Risen Since 1960? Scott R. Baker; Nicholas Bloom; Brandice Canes-Wrone; Steven J. Davis; Jonathan A. Rodden
  14. Survival strategies of single women in the Bruges countryside, 1814. Sofie De Langhe; Isabelle Devos; Christa Matthys
  15. The Origins of Stock Market Fluctuations Daniel L. Greenwald; Martin Lettau; Sydney C. Ludvigson
  16. Universal Child Care, Maternal Employment, and Children’s Long-Run Outcomes: Evidence from the U.S. Lanham Act of 1940 Herbst, Chris M.
  17. Continuity or rupture ? An analysis of some aspects of social philosophy in the works of J.S.Mill, Alfred Marshall and J.M.Keynes Laura Valladão de Mattos

Contents.

  1. Recovery from Financial Crises: Evidence from 100 Episodes
    Date: 2014-01
    By: Carmen M. Reinhart
    Kenneth S. Rogoff
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19823&r=his
    We examine the evolution of real per capita GDP around 100 systemic banking crises. Part of the costs of these crises owes to the protracted nature of recovery. On average, it takes about eight years to reach the pre-crisis level of income; the median is about 6 ½ years. Five to six years after the onset of crisis, only Germany and the US (out of 12 systemic cases) have reached their 2007-2008 peaks in real income. Forty-five percent of the episodes recorded double dips. Postwar business cycles are not the relevant comparator for the recent crises in advanced economies.
    JEL: E32 E44 F44 G01 N10 N20
  2. Where Was the Wealth of the Nation? Measuring Swedish Capital for the 19th and 20th Centuries
    Date: 2014-01-13
    By: Lindmark, Magnus (CERE, Umeå University)
    Andersson, Lars Fredrik (CERE, Umeå University)
    URL: http://d.repec.org/n?u=RePEc:hhs:slucer:2014_001&r=his
    This report presents estimates of the Swedish national wealth from 1830 to 2010. This contributes to economic historical research on structural change and growth, while it also supplements debates on the composition of wealth and incomes across countries. The report also includes for the first time a historical estimate of the Consumer Rate Interest CRI and an estimate of wealth based on surveys and insurance data. The report includes an extensive description and documentation of the historical estimates. The main findings are that the proportion of intangible capital grew before modern economic growth was achieved in Sweden during the 1890’s. Secondly, we show that the proportion of natural assets fell prior to and during the industrialization, while the share of produced capital has fluctuated, but has remained fairly stable over the period as a whole.
    Keywords: capital stocks; national wealth; Historical national accounts; Sweden; Economic history
    JEL: N00
  3. Capitalist transformation without political participation: German capitalism in the first half of the 19th century
    Date: 2013
    By: Wegner, Gerhard
    URL: http://d.repec.org/n?u=RePEc:zbw:aluord:1314&r=his
    The paper analyzes the political economy of capitalist transformation in Germany during the first half of the 19th century. Current approaches in institutional economics stress the dependency of economic and political institutions in ‘open access orders’, which makes economic freedom without political freedom unsustainable. However, the emergence of capitalism in the German states after 1806 gives an example that economic freedom can precede political freedom, which implies that the political power of the ‘dominant coalition’ remains intact for a longer period of time. The paper argues that the German transformation towards modern capitalism was in stigated by competition among the European states; it was conducive to the monopolization of the coercive power of the state. This competition drove a wedge between the interests of the monarch and his supporting dominant coalition (landed gentry). Accordingly, the monarch had! to find a bargain which established capitalist institutions in order to promote economic growth without compromising the interests of the landed gentry. Namely the public administration in Prussia which was deeply influenced by Adam Smith’s ideas organized that bargain; it established economic freedom in various sectors but took the economic interests of the landed gentry into account. At the same time, public administration and the legal system gained more independence from the monarch. In various aspects the sweeping institutional change was Pareto-superior for groups, which made capitalism also acceptable for the elite group. Later institutional improvements have relaxed still existing constraints so that high industrialization which brought the German economy to the top of international markets could take place. —
  4. Coal and the European Industrial Revolution
    Date: 2014-01
    By: Alan Fernihough
    Kevin Hjortshøj O’Rourke
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19802&r=his
    We examine the importance of geographical proximity to coal as a factor underpinning comparative European economic development during the Industrial Revolution. Our analysis exploits geographical variation in city and coalfield locations, alongside temporal variation in the availability of coal-powered technologies, to quantify the effect of coal availability on historic city population sizes. Since we suspect that our coal measure could be endogenous, we use a geologically derived measure as an instrumental variable: proximity to rock strata from the Carboniferous era. Consistent with traditional historical accounts of the Industrial Revolution, we find that coal had a strong influence on city population size from 1800 onward. Counterfactual estimates of city population sizes indicate that our estimated coal effect explains at least 60% of the growth in European city populations from 1750 to 1900. This result is robust ! to a number of alternative modelling assumptions regarding missing historical population data, spatially lagged effects, and the exclusion of the United Kingdom from the estimation sample.
    JEL: J10 N13 N53 O13 O14
  5. Two Centuries of International Migration
    Date: 2013-12
    By: Ferrie, Joseph (Northwestern University)
    Hatton, Timothy J. (University of Essex)
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7866&r=his
    This is a draft chapter for B. R. Chiswick and P. W. Miller (eds.) Handbook on the Economics of International Migration. It provides an overview of trends and developments in international migration since the industrial revolution. We focus principally on long-distance migration to rich destination countries, the settler economies in the nineteenth century and later the OECD. The chapter describes the structure, direction and determinants of migration flows and the assimilation experience of migrants. It also examines the impact of migration on destination and source countries, and explores the political economy behind the evolution of immigration policy. We provide an historical context for current debates on immigration and immigration policy and we conclude by speculating on future trends.
    Keywords: international migration history, development of immigration policy
    JEL: F22 N30 N40
  6. Milton Friedman: Constructing an Anti-Keynes
    Date: 2013-12
    By: Craig Freedman (Department of Economics, Macquirie University)
    Geoff C. Harcourt (School of Economics, Australian School of Business, the University of New South WalesAuthor-Name: Craig Freedman)
    Peter Kriesler (School of Economics, Australian School of Business, the University of New South WalesAuthor-Name: Craig Freedman)
    John Nevilet (School of Economics, Australian School of Business, the University of New South Wales)
    URL: http://d.repec.org/n?u=RePEc:swe:wpaper:2013-35&r=his
    The paper considers Keynes’s major contributions before "The General Theory", namely "A Tract on Monetary Reform" and "A Treatise on Money", and shows that they were close to the views which Friedman would later develop. However, "The General Theory of Employment, Interest and Money" represented a major challenge to the orthodoxy of the time, and it was to this that Friedman radically objected. We identify the main areas in which Keynes departed from the mainstream theory of the time, and show how Friedman attempted to undermine each of Keynes’s major contributions and the extent to which he was successful. Friedman regarded Keynes’s contributions as detrimental to, and a definitive step backward for, the economics profession.
    Keywords: Friedman, Keynes, History of macroeconomics, Macroeconomic policy
    JEL: B22 B31 E6
  7. Observations on the Centennial of the Federal Reserve System The Philadelphia Fed Policy Forum: "The History of Central Banking in the United States," December 6, 2013
    Date: 2013-12-06
    By: Plosser, Charles I. (Federal Reserve Bank of Philadelphia)
    URL: http://d.repec.org/n?u=RePEc:fip:fedpsp:90&r=his
    Presented by Charles I. Plosser, President and Chief Executive Officer, Federal Reserve Bank of Philadelphia, The Philadelphia Fed Policy Forum, "The History of Central Banking in the United States," Philadelphia, PA
    Keywords: Centennial
  8. The Evolution of Bank Supervision: Evidence from U.S. States
    Date: 2014
    By: Mitchener, Kris James (University of Warwick)
    URL: http://d.repec.org/n?u=RePEc:cge:warwcg:180&r=his
    We use a novel data set spanning 1820-1910 to examine the origins of bank supervision and assess factors leading to the creation of formal bank supervisory institutions across U.S. states. We show that it took more than a century for the widespread adoption of independent supervisory institutions tasked with maintaining the safety and soundness of banks. State legislatures initially pursued cheaper regulatory alternatives, such as double liability laws; however, banking distress at the state level as well as the structural shift from note-issuing to deposit-taking commercial banks propelled policymakers to adopt costly and permanent supervisory institutions.
    Keywords: bank supervision, U.S. States
  9. Lange’s 1938 Model: Dynamics and the "Optimum propensity to consume"
    Date: 2014-01
    By: Michaël Assous (GREDEG CNRS)
    Roberto Lampa (CONICET (National Scientific and Technical Research Council))
    URL: http://d.repec.org/n?u=RePEc:gre:wpaper:2014-02&r=his
    Oskar Lange’s 1938 article “The Rate of Interest and the Optimum Propensity to Consume”, is usually associated with the original IS-LM approach of the late 1930s. However, Lange’s article was not only an attempt to illuminate Keynes’s main innovations but the first part of a wide project that included the development of a theory of economic evolution. This paper aims at showing that Lange’s article can help illuminating critical aspects of this project: in particular, Lange’s idea that a synthesis between Kaldor’s and Kalecki’s theories and that of Schumpeter, might have been possible and that it represented (in intentions) a “modern” and consistent reconstruction of the Marxist theory of the business cycle. Section 1 clarifies Lange’s early reflection on dynamics. Section 2 centers on Lange’s 1938 static model and indicates the effects of a change of saving on investment. Section 3 suggests a d! ynamic reconstruction from which are addressed important arguments raised by Lange in a series of papers written between 1934 and 1942.
    Keywords: Lange, Kalecki, Marxian theory of the business cycle, marginal propensity to save, non-linearity
    JEL: B22 B24 E32 E12
  10. State Capacity and Economic Development: A Network Approach
    Date: 2014-01
    By: Daron Acemoglu
    Camilo García-Jimeno
    James A. Robinson
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19813&r=his
    We study the direct and spillover effects of local state capacity using the network of Colombian municipalities. We model the determination of local and national state capacity as a network game in which each municipality, anticipating the choices and spillovers created by other municipalities and the decisions of the national government, invests in local state capacity and the national government chooses the presence of the national state across municipalities to maximize its own payoff. We then estimate the parameters of this model using reduced-form instrumental variables techniques and structurally (using GMM, simulated GMM or maximum likelihood). To do so we exploit both the structure of the network of municipalities, which determines which municipalities create spillovers on others, and the historical roots of local state capacity as the source of exogenous variation. These historical instruments are related to the! presence of colonial royal roads and local presence of the colonial state in the 18th century, factors which we argue are unrelated to current provision of public goods and prosperity except through their impact on their own and neighbors’ local state capacity. Our estimates of the effects of state presence on prosperity are large and also indicate that state capacity decisions are strategic complements across municipalities. As a result, we find that bringing all municipalities below median state capacity to the median, without taking into account equilibrium responses of other municipalities, would increase the median fraction of the population above poverty from 57% to 60%. Approximately 57% of this is due to direct effects and 43% to spillovers. However, if we take the equilibrium response of other municipalities into account, the median would instead increase to 68%, a sizable change driven by equilibrium network effects.
    JEL: H4 H7 P16
  11. The determinants of public spending: a survey in a methodological perspective
    Date: 2014-01-17
    By: Facchini, Francois
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:53006&r=his
    SURVEY: This article shows that applied econometric is not a way of selecting, from among a plethora of possible explanations of public spending evolution. It lists 19 explanations and 73 explanatory variables and provides evidence of the great confusion in this field and the relative emptiness of quantitative economics. Then it sustains the Mayer’s idea that “given all the weakness of econometric techniques, other ways of testing, such as appeals to qualitative economic history, should not be treated as archaic”.
    Keywords: public spending, applied econometric and causality
    JEL: H10 H50
  12. On the stationarity of per capita carbon dioxide emissions over a century
    Date: 2013-12
    By: Maria Christisou (Department of Economics, University of Macedonia)
    Theodore Panagiotidis (Department of Economics, University of Macedonia)
    Abhijit Sharma (Bradford University School of Management)
    URL: http://d.repec.org/n?u=RePEc:mcd:mcddps:2013_02&r=his
    This paper examines the stationarity of carbon dioxide (CO2) emissions per capita for a set of 36 countries covering the period 1870-2006. We employ recently developed unit root and stationarity tests that allow for the mean reverting process to be nonlinear and take into account cross sectional dependence. By grouping countries according to their geographical proximity the importance of cross sectional dependence in panel unit root and stationarity tests is revealed. Using a recently developed nonlinear panel unit root test, we nd strong evidence that the per capita carbon dioxide emissions over the last one hundred and fty years are stationary. Our nonlinear specication captures the dynamics of the emissions time series data more eectively and we obtain evidence supporting stationarity for all country groups under study.
    Keywords: convergence, nonlinear unit roots, panel unit roots, heterogeneous panels, cross-section dependence.
    JEL: C32 C33 Q28 Q54
  13. Why Has U.S. Policy Uncertainty Risen Since 1960?
    Date: 2014-01
    By: Scott R. Baker
    Nicholas Bloom
    Brandice Canes-Wrone
    Steven J. Davis
    Jonathan A. Rodden
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19826&r=his
    There appears to be a strong upward drift in policy-related economic uncertainty after 1960. We consider two classes of explanations for this rise. The first stresses growth in government spending, taxes, and regulation. A second stresses increased political polarization and its implications for the policy-making process and policy choices. While the evidence is inconclusive, it suggests that both factors play a role in driving the secular increase in policy uncertainty over the last half century.
    JEL: D7 E02 E6 H11
  14. Survival strategies of single women in the Bruges countryside, 1814.
    Date: 2013-12
    By: Sofie De Langhe (Department of History, Ghent University)
    Isabelle Devos (Department of History, Ghent University)
    Christa Matthys (Max Planck Institute for Demographic Research, Rostock)
    URL: http://d.repec.org/n?u=RePEc:ghe:wpaper:6&r=his
    This paper explores the employment opportunities and subsistence strategies of single women in the countryside around Bruges on the basis of the census of 1814. This source enables us to provide an overview of the professions and household situations of more than 5000 single women above the age of 30. At that age, women exceeded the mean age of marriage and presumably had to develop very specific subsistence strategies. The census of 1814 allows us to look at the registered occupations for older single women in two different social agro-systems (polder and inland Flanders), but it also provides us with material to look more into depth at single women without a registered occupation. While these women were officially ‘without occupation’, they most probably did work. Information on household structures allows us to get an insight into the living arrangements and the activities of these women. From this perspe! ctive, the paper contributes to two important discussions, that is on the living conditions of single women, and those of rural women. While women in the city have attracted the most scholarly attention, the living conditions of rural women remain largely unexplored. Length: 16 pages
    JEL: J16 J43 N33
  15. The Origins of Stock Market Fluctuations
    Date: 2014-01
    By: Daniel L. Greenwald
    Martin Lettau
    Sydney C. Ludvigson
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19818&r=his
    Three mutually uncorrelated economic shocks that we measure empirically explain 85% of the quarterly variation in real stock market wealth since 1952. We use a model to show that they are the observable empirical counterparts to three latent primitive shocks: a total factor productivity shock, a risk aversion shock that is unrelated to aggregate consumption and labor income, and a factors share shock that shifts the rewards of production between workers and shareholders. On a quarterly basis, risk aversion shocks explain roughly 75% of variation in the log difference of stock market wealth, but the near-permanent factors share shocks plays an increasingly important role as the time horizon extends. We find that more than 100% of the increase since 1980 in the deterministically detrended log real value of the stock market, or a rise of 65%, is attributable to the cumulative effects of the factors share shock, which persis! tently redistributed rewards away from workers and toward shareholders over this period. Indeed, without these shocks, today’s stock market would be about 10% lower than it was in 1980. By contrast, technological progress that rewards both workers and shareholders plays a smaller role in historical stock market fluctuations at all horizons. Finally, the risk aversion shocks we identify, which are uncorrelated with consumption or its second moments, largely explain the long-horizon predictability of excess stock market returns found in data. These findings are hard to reconcile with models in which time-varying risk premia arise from habits or stochastic consumption volatility.
    JEL: G0 G12
  16. Universal Child Care, Maternal Employment, and Children’s Long-Run Outcomes: Evidence from the U.S. Lanham Act of 1940
    Date: 2013-12
    By: Herbst, Chris M. (Arizona State University)
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7846&r=his
    This paper provides a comprehensive analysis of the Lanham Act of 1940, a heavily-subsidized and universal child care program that was administered throughout the U.S. during World War II. I begin by estimating the impact of the Lanham Act on maternal employment using 1940 and 1950 Census data in a difference-in-difference-in-differences framework. The evidence suggests that mothers’ paid work increased substantially following the introduction of the child care program. I then study the implications of the Lanham Act for children’s long-run outcomes related to educational attainment, family formation, and labor market participation. Using Census data from 1970 to 1990, I assess well-being in a lifecycle framework by tracking cohorts of treated individuals throughout their prime working years. Results from difference-in-differences models suggest that the Lanham Act had strong and persistent positive effects on well-being! , equivalent to a 0.36 standard deviation increase in a summary index of adult outcomes. In addition, a supplementary analysis of distributional effects shows that the benefits of the Lanham Act accrued largely to the most economically disadvantaged adults. Together, these findings shed light on the design of contemporary child care systems that balance the twin goals of increasing parental employment and enhancing child well-being.
    Keywords: universal child care, maternal employment, long-run outcomes
    JEL: J13
  17. Continuity or rupture ? An analysis of some aspects of social philosophy in the works of J.S.Mill, Alfred Marshall and J.M.Keynes
    Date: 2013-12-20
    By: Laura Valladão de Mattos
    URL: http://d.repec.org/n?u=RePEc:spa:wpaper:2013wpecon24&r=his
    It is argued in this paper that it’s possible to speak of a ‘tradition’ in the field of social and economic philosophy uniting the works of J.S.Mill, Alfred Marshall and John Maynard Keynes. This ‘tradition’ can be characterized by the following concepts: (a) by the rejection of the acquisitive values of capitalism; (b) by the idea that capitalism would be incapable of spontaneously solving the problems of distribution of wealth and poverty; (c) by the idea that, for the sake of the preservation of liberty, diversity and economic efficiency, individual initiative should be free to act wherever it engenders good results, but that the State should intervene whenever the free initiative fails, acting in the good of collectivity; (d) by the belief that it would be possible to make capitalism significantly better by the way of small and gradual changes.
    Keywords: J.S.Mill; Alfred Marshall; J.M.Keynes; social and economic philosophy; social change
    JEL: B12 B13 B2

The challenges of updating the contours of the world economy (1AD – today)

This week in the Nep-His blog we have a new contributor, Emanuele Felice, discussing

The First Update of the Maddison Project: Re-estimating Growth Before 1820

by Jutta Bolt (University of Groningen) and Jan Luiten van Zanden (Utrecht University)

You will also find we have a new section: Book Reviews. Here we collect comments and summaries by non-academics on monograph in the broad areas of economic and business history. This week we have added

The Great Mirror of Folly: Finance, Culture, and the Crash of 1720 by William Goetzmann, Catherine Labio, K. Geert Rouwenhorst and Timothy Young (eds) (forward by Robert Shiller) (2013, Yale University Press).

Reviewed by Nep-His supporter Jason Zweig in MoneyBeat / Wall Street Journal (January 10, 2013).

We would love to hear from other such reviews (past or future). Please email links directly to me.

Please follow us at

http://www.nephis.org

Best wishes
Bernardo

email: b.batiz-lazo @ bangor.ac.uk
Twitter: batizlazo


nep-his 2014-01-26, 4 papers (special issue: the Maddison Project)

NEP: New Economics Papers
Business, Economic and Financial History


nep-his 2014-01-17, 22 papers

NEP: New Economics Papers
Business, Economic and Financial History

Edited by: Bernardo Batiz-Lazo
Bangor University
Issue date: 2014-01-17
Papers: 22

Note: Access to full contents may be restricted.
NEP is sponsored by the School of Economics and Finance of Victoria University of Wellington.
To subscribe/unsubscribe follow this link http://lists.repec.org/mailman/options/nep-his

In this issue we have:

  1. West versus East: Early globalization and thr great divergence Rafael Dobado-González; Alfredo García-Hiernaux; David Guerrero-Burbano
  2. Episodes from the Early History of Experimentation in Economics Andreas Ortman
  3. Economic ideas regarding the urban water supply service in The nineteenth century britain José Luis Ramos Gorostiza; Ana Rosado Cubero
  4. Irish Land Bonds: 1891-1938 Nathan Foley-Fisher (Research and Statistics Division, Federal Reserve Board, Washington D.C.) and Eoin McLaughlin (History, Classics & Archaeology, University of Edinburgh)
  5. Dutch Corporate Finance, 1602-1850 de Jong, A.; Jonker, J.; Roëll, A.
  6. La imagen económica de la España del siglo XVII: La mirada extranjera frente a la visión de los arbitristas Luis Perdices de Blas; José Luis Ramos Gorostiza
  7. One hundred years of solitude, accumulation and violence: A comparative historical analysis of the Sierra Nevada of Santa Marta Valley Bedoya Arias, M.E.
  8. Plenty of Land, Land of Plenty. The Agrarian Output of Portugal (1311-20) António Henriques
  9. "Colonial New Jersey’s Paper Money Regime, 1709-1775: A Forensic Accounting Reconstruction of the Data" FARLEY GRUBB
  10. Financing U.S. External Trade, 1790-1819 Javier Cuenca-Esteban
  11. The Formative Years of the Modern Corporation: The Dutch East India Company VOC, 1602-1623 Gelderblom, O.; de Jong, A.; Jonker, J.
  12. Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928 Richard S.Grossman
  13. Savings banks and cooperative banks in Europe Bülbül, Dilek; Schmidt, Reinhard H.; Schüwer, Ulrich
  14. Spatial Takeoff in the First Industrial Revolution Alex Trew
  15. Border Studies Donzelli, S.
  16. Trade, Self-Governance,and the Provision of Law and Order, with an Application To Medieval English Chartered Towns Angelucci, Charles; Meraglia, Simone
  17. Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten Carmen Reinhart; Kenneth Rogoff
  18. Economic Prospects for the Long Run : a speech at Bard College at Simon’s Rock, Great Barrington, Massachusetts, May 18, 2013 Bernanke, Ben S.
  19. Imperfect but Hard Competition: the Portuguese Banking Sector in the Golden Age (1950-1973) Luciano Amaral
  20. How Are You, My Dearest Mozart? Well-being and Creativity of Three Famous Composers Based on their Letters Karol Jan BOROWIECKI
  21. The Triple Helix as a Highly Charged Intellectual Enterprise Todeva, Emanuela; Etzkiwitz, Henry
  22. Competition/fragmentation in equities markets: A literature survey Gomber, Peter; Sagade, Satchit; Theissen, Erik; Weber, Moritz Christian; Westheide, Christian

Contents.

  1. West versus East: Early globalization and thr great divergence
    Date: 2013-08
    By: Rafael Dobado-González (Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.)
    Alfredo García-Hiernaux (Dpto. de Fundamentos del Análisis Económico II. Facultad CC. Económicas y Empresariales. Univ. Complutense de Madrid. Campus de Somosaguas, s/n. 28223 POZUELO DE ALARCÓN (MADRID).)
    David Guerrero-Burbano (Centro Universitario de Estudios Financieros, Madrid.)
    URL: http://d.repec.org/n?u=RePEc:ucm:doctra:13-08&r=his
    This paper extends our previous work on grain market integration across Europe and the Americas in the eighteenth and nineteenth centuries (Dobado, García-Hiernaux and Guerrero, 2012). By using the same econometric methodology, we now present: 1) a search for statistical evidence in the East of an “Early Globalization” comparable to the one ongoing in the West by mid eighteenth century; 2) a study on the integration of grain markets in China and Japan and its functioning in comparison to Western countries; 3) a discussion of the relevance of our findings for the debate on the Great Divergence. Our main conclusions are: 1) substantial differences in the degree of integration and the functioning of grain markets are observed between East and West; 2) a certain degree of integration may be reached through different combinations of factors (agents, policies, etc.) and with dissimilar effects on long-run economic growth;! 3) the absence of an “Early Globalization” in the East reveals the existence of some economic and institutional limitations in this part of the world and contributed to its “Great Divergence” with the West from at least the eighteenth century.Este trabajo expande nuestra investigación previa sobre la integración del mercado de granos en Europa y América (Dobado, García-Hiernaux y Guerrero, 2012). Usando la misma metodología econométrica, presentamos ahora: 1) la búsqueda de evidencia estadística en el Este de una “Globalización temprana” semejante a la encontrada en el Oeste desde mediados del siglo XVIII; 2) un estudio de la integración de los mercados en china y Japón y su funcionamiento en comparación con los países occidentales; 3) una discusión de la relevancia de nuestros resultados respecto al debate sobre la “Gran Divergencia”. Nuestras principales conclusiones son: 1) encontramos diferencias sustanciales entre Este y Oeste en lo que a! l grado de integración y al funcionamiento de los mercados de grano se refiere; 2) un cierto grado de integración puede ser alcanzado mediante combinaciones diferentes de factores (agentes, políticas, etc.) y con efectos distintos sobre el crecimiento económico a largo plazo; 3) la ausencia de una “Globalización temprana” en el Este revela la existencia de limitaciones económicas e institucionales en esta parte del mundo y contribuyó a la “Gran Divergencia” con el Oeste desde al menos el siglo XVIII.
    Keywords: Economic history, Market integration, Globalization, Great divergence, Time series analysis, Historia económica, Integración de mercados, Globalización, Gran divergencia, Series temporales.
    JEL: C22 F15 N10 N70
  2. Episodes from the Early History of Experimentation in Economics
    Date: 2013-12
    By: Andreas Ortman (School of Economics, Australian School of Business, the University of New South Wales)
    URL: http://d.repec.org/n?u=RePEc:swe:wpaper:2013-34&r=his
    Keywords: Experimental methods, Early History of Experimentation in Economics
    JEL: B41 C9
  3. Economic ideas regarding the urban water supply service in The nineteenth century britain
    Date: 2013
    By: José Luis Ramos Gorostiza (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid, Campus de Somosaguas,s/n. 28223 Pozuelo de Alarcón (Madrid) – SPAIN)

    Ana Rosado Cubero (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense, Campus de Somosaguas. 28223 Pozuelo de Alarcón (Madrid), Spain.)

    URL: http://d.repec.org/n?u=RePEc:ucm:doctra:13-03&r=his
    By the mid-nineteenth century, along with other network infrastructurestypical of the Second Industrial Revolution, began to take shape the modern system of water supply. The purpose of this paper is to examine the major economic ideas surrounding the beginnings of this new urban service in Britain during the second half of the nineteenth century, which marked a starting point for future analytical developments. First, the socioeconomic importance of improvement of public health through an intensive use of running water. Second, the emergence of the concept of natural monopoly. And finally, the debate about the organization of service management. This interesting case gives us the opportunity to observe the interaction, in both directions, between facts and economic ideas.Hacia mediados del siglo XIX, junto a otras infraestructuras en red propias de la segunda revolución industrial, empezó a configurarse el sistema mod! erno de abastecimiento de agua potable. El propósito de este trabajo es examinar las principales ideas económicas que rodearon los inicios de este novedoso servicio urbano en Gran Bretaña durante la segunda mitad del siglo XIX, y que marcaron un punto de arranque para futuros desarrollos analíticos. Primero, la importancia socioeconómica de la mejora de la salubridad pública a través de un uso intensivo de agua corriente. Segundo, el surgimiento de la noción de monopolio natural. Y tercero, el debate en torno a la mejor forma de organizar la gestión del servicio. Lo interesante del caso es que nos ofrece la posibilidad de observar la interacción, en ambos sentidos, entre hechos e ideas económicas.
    Keywords: Urban water supply, Great Britain, Public health, Natural monopoly, History of economic thought, Abastecimiento urbano de agua, Gran Bretaña, Salud pública, Monopolio natural, Historia del pensamiento económico.
    JEL: B00 B10
  4. Irish Land Bonds: 1891-1938
    Date: 2014-01-08
    By: Nathan Foley-Fisher (Research and Statistics Division, Federal Reserve Board, Washington D.C.) and Eoin McLaughlin (History, Classics & Archaeology, University of Edinburgh)
    URL: http://d.repec.org/n?u=RePEc:edn:esedps:239&r=his
    This paper introduces a new database on Irish land bonds listed on the Dublin Stock Exchange from 1891 to 1938: it outlines the nature of these bonds and presents data on their size, liquidity and market returns. These government-guaranteed bonds arose during a period when the possibility of Irish secession from the United Kingdom appeared ever more likely, and were used to finance the transfer of land ownership from landlords to tenants in Ireland (North & South). Movements in the prices of these bonds can help to understand how financial markets responded to events in the early economic and political history of the Irish Free State, including Irish partition, Independence, Civil War and de facto default. Understanding these issues has contemporary relevance for regions in Spain (Catalonia, Euskadi), Great Britain (Scotland) and Belgium (Flanders).
    Keywords: Irish economic history, land reform, land bonds, Dublin Stock Exchange.
    JEL: N23 N24 N53 N54 G15
  5. Dutch Corporate Finance, 1602-1850
    Date: 2013-06-04
    By: de Jong, A.
    Jonker, J.
    Roëll, A.
    URL: http://d.repec.org/n?u=RePEc:ems:eureri:40333&r=his
    Early Modern Dutch corporate finance had two notable features, a remarkable ease of raising large amounts of capital and a flexible legal framework. Having pioneered new corporate forms with two intercontinental trading companies, Dutch business adopted such forms on a wider scale only during the 18th century, when economic concentration and consolidation led to the appearance of business units large enough to need them. The financial intermediation and legal institutions available also facilitated early industrialization during the 19th century, up to and including the railways. The large export of capital throughout the period under consideration failed to harm economic development at any point or in any way.
    Keywords: corporate finance
    JEL: G3 M00
  6. La imagen económica de la España del siglo XVII: La mirada extranjera frente a la visión de los arbitristas
    Date: 2013-05
    By: Luis Perdices de Blas (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid, Campus de Somosaguas,s/n. 28223 Pozuelo de Alarcón (Madrid) – SPAIN)

    José Luis Ramos Gorostiza (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid, Campus de Somosaguas,s/n. 28223 Pozuelo de Alarcón (Madrid) – SPAIN)

    URL: http://d.repec.org/n?u=RePEc:ucm:doctra:13-04&r=his
    The economic image of the seventeenth century Spain: The foreign look versus the viwof the Arbitristas This paper compares the economic image of the seventeenth century Spain we received from the foreign travelers with that offered by the arbitristas, examining the main similarities and differences. Specifically, it analyses the following issues: the consideration of natural resources base, the vision of national character and its relation to productive activities, and the perception of economic situation and the causes of backwardness. The aim is to contrast the view of those who were thinking "from the inside" about the causes of the striking decline of the country, with the free and uncensored look of foreign visitors, which –despite its constraints and limitations– tended to focus on the most striking and different aspects compared to the reality of their own countries.Este trabajo compara la imagen económica de! la España del siglo XVII que nos transmitieron los viajeros extranjeros con la ofrecida por los arbitristas, examinando las principales similitudes y diferencias. En concreto, se detiene en las siguientes cuestiones: la consideración del medio natural, la visión del carácter nacional y de su relación con las actividades productivas, y la percepción de la situación económica y de las causas del atraso. Se trata de contrastar la opinión de aquellos que estaban reflexionando “desde dentro” sobre las causas de la llamativa decadencia del país, con la mirada libre y sin censuras del visitante extranjero, que –pese a sus condicionantes y limitaciones– tendía a fijarse en los aspectos más llamativos y diferentes respecto a la realidad de su propio país de origen.
    Keywords: Travelers, Arbitristas, Economy, Spain, Seventeenth century, History of economic thought, Viajeros, Arbitristas, Economía, España, siglo XVII, Historia del pensamiento económico.
    JEL: B00 B10
  7. One hundred years of solitude, accumulation and violence: A comparative historical analysis of the Sierra Nevada of Santa Marta Valley
    Date: 2013-03-18
    By: Bedoya Arias, M.E.
    URL: http://d.repec.org/n?u=RePEc:ems:euriss:39199&r=his
    This is an analysis of two moments in the Colombian history within a century of difference, where isolation, accumulation and violence interact in a region brought into the worlds’ imaginary by the Colombian novelist Gabriel García Márquez in One Hundred years of Solitude. A valley between four natural borderlines: the Sierra Nevada of Santa Marta, the Perijá hills, the Central and East ‘Cordilleras’ -mountain range- and the Magdalena River in the departments of Cesar and Magdalena (Colombia) part of what was called the department of ‘Magdalena Grande’ was blessed – or perhaps coursed – with wealth in natural resources; plenty of water streams, a unique biodiversity, cultural affluence and immense reserves of one of the purest steam coals. This paper attempts to draw a picture of the superimposed and persistent power structures that apparently facilitate the accumulative processes and imbalances within o! ne century of difference, making use of violence as means to maintain equilibrium. Environment is changed trough politicized violent inflictions over society and nature. The resultant scars are the ones inflicted on a collective memory, as this valley is and will always be recalled by the poetic truth of the narrative of Gabriel García Marquez who recreated this mythic environment as ‘Macondo’. He remembers his own story of early childhood that here serves as an excuse to analyze a region that is again being bled by accumulation.
    Keywords: Colombia, accumulation, banana, coal, extraction enclaves, isolation, political ecology of violence, violence
  8. Plenty of Land, Land of Plenty. The Agrarian Output of Portugal (1311-20)
    Date: 2014-01
    By: António Henriques (Faculdade de Economia, Universidade do Porto)
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:520&r=his
    This article presents a benchmark for Portuguese agrarian output for the 1311-20 decade. This benchmark is built from the supply side, using the value of ecclesiastical tithes, and tested with macro and micro level demand-side information. Compared with existing estimates for contemporary England, real Portuguese per capita agrarian output appears high. This result challenges the received wisdom that by 1320 Portugal was hard-pressed by demographic forces. Instead, it confirms that by 1320, Portugal was a ‘frontier economy’ with a high land/labour ratio and a high per capita output level.
    Keywords: Economic History, Agriculture, Living Standards, Frontier Economy
    JEL: N53
  9. "Colonial New Jersey’s Paper Money Regime, 1709-1775: A Forensic Accounting Reconstruction of the Data"
    Date: 2014
    By: FARLEY GRUBB (Department of Economics,University of Delaware)
    URL: http://d.repec.org/n?u=RePEc:dlw:wpaper:14-05.&r=his
    Forensic accounting techniques are used to construct new data series on emissions, redemptions, and bills outstanding for colonial New Jersey paper money. These components are further separated into the amounts initially legislated and planned, and the amounts actually executed. Not only are these data improvements over the prior data in the literature, but they provide a more complete and nuanced accounting of colonial New Jersey’s paper money regime than what has been done previously for any British North American colony. Enough detail of the forensic accounting exercise is given for scholars to reproduce the data series from the original sources.
    Keywords: bills of credit, colonial money supply, land banks, monetary redemption, paper money
    JEL: E51 N11
  10. Financing U.S. External Trade, 1790-1819
    Date: 2013-12
    By: Javier Cuenca-Esteban (Department of Economics, University of Waterloo)
    URL: http://d.repec.org/n?u=RePEc:wat:wpaper:1308&r=his
    In the "neutrality years" 1793-1807 and beyond, U.S. merchants drew on Spanish-American silver to finance their carrying trade and to settle deficits with Europe and the Far East. The size and direction of these payments must remain unknown, because no records of silver flows were kept until 1821. This paper infers the financial claims and liabilities involved from estimated balances of trade and services at foreign ports by geographic areas. It suggests that the seemingly central role of Spanish silver pesos in financing U.S. deficits with China is only partially explained by legal exchange between the United States and Spain, Spanish America, or Europe. The weight of evidence and argument thus points to any additional silver coin that U.S. merchants may have secured through unofficial exports directly to Spanish America.
    JEL: N71 N73 N75 N76 N77 N41 N43 N45 N46 N47
  11. The Formative Years of the Modern Corporation: The Dutch East India Company VOC, 1602-1623
    Date: 2012-06-23
    By: Gelderblom, O.
    de Jong, A.
    Jonker, J.
    URL: http://d.repec.org/n?u=RePEc:ems:eureri:32952&r=his
    With their legal personhood, permanent capital with transferable shares, separation of ownership and management, and limited liability for both shareholders and managers, the Dutch East India Company (VOC) and subsequently the English East India Company (EIC) are generally considered a major institutional breakthrough. Our analysis of the business operations and notably the financial policy of the VOC during the company’s first two decades in existence shows that its corporate form owed less to foresight than to constant piecemeal engineering to remedy original design flaws brought to light by prolonged exposure to the strains of the Asian trade. Moreover, the crucial feature of limited liability for managers was not, as previously thought, part and parcel of that design, but emerged only after a long period of experimenting with various, sometimes very ingenious, solutions to the company’s financial bottlenecks.
    Keywords: Dutch East India Company, VOC
    JEL: F1 O1 O43
  12. Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928
    Date: 2014-01
    By: Richard S.Grossman (Department of Economics, Wesleyan University)
    URL: http://d.repec.org/n?u=RePEc:wes:weswpa:2014-001&r=his
    This paper presents data on quantity, capital gains, dividend, and total returns for domestic and overseas equities listed on the London Stock Exchange during 1869-1928. Indices are presented for Africa, Asia, Europe, Latin America, North America, Australia/New Zealand and for the finance, transportation, raw materials, and utilities sectors in each region. Returns and volatility were typically highest in emerging regions and the raw materials sector. Dividend yields were similar across regions and differences in total returns were due largely to disparities in capital gains. Returns of firms in more industrial markets were relatively highly correlated with each other and with developing regions with which they had substantial colonial or trade connections. Contingent liability was most extensively employed where leverage was high and the physical assets were either meager or inaccessible to creditors.
  13. Savings banks and cooperative banks in Europe
    Date: 2013
    By: Bülbül, Dilek
    Schmidt, Reinhard H.
    Schüwer, Ulrich
    URL: http://d.repec.org/n?u=RePEc:zbw:safewh:5&r=his
    Until about 25 years ago, almost all European countries had a so-called three pillar banking system comprising private banks, (public) savings banks and (mutual) cooperative banks. Since that time, several European countries have implemented far-reaching changes in their banking systems, which have more than anything else affected the two pillars of the savings and cooperative banks. The article describes the most important changes in Germany, Austria, France, Italy and Spain and characterizes the former and the current roles of savings banks and cooperative banks in these countries. A particular focus is placed on the German case, which is almost unique in so far as the German savings banks and cooperative banks have maintained most of their traditional features. The article concludes with a plea for diversity of institutional forms of banks and argues that it is important to safeguard the strengths of those types of ba! nks that do not conform to the model of a large shareholder-oriented commercial bank. —
  14. Spatial Takeoff in the First Industrial Revolution
    Date: 2014-01-01
    By: Alex Trew (University of St Andrews)
    URL: http://d.repec.org/n?u=RePEc:san:cdmawp:1401&r=his
    Using the framework of Desmet and Rossi-Hansberg (forthcoming), we present a model of spatial takeoff that is calibrated using spatially-disaggregated occupational data for England in c.1710. The model predicts changes in the spatial distribution of agricultural and manufacturing employment which match data for c.1817 and 1861. The model also matches a number of aggregate changes that characterise the first industrial revolution. Using counterfactual geographical distributions, we show that the initial concentration of productivity can matter for whether and when an industrial takeoff occurs. Subsidies to innovation in either sector can bring forward the date of takeoff while subsidies to the use of land by manufacturing firms can significantly delay a takeoff because it decreases spatial concentration of activity.
    Keywords: Endogenous growth, first industrial revolution, economic geography, structural change.
    JEL: O11 O18 O33 N13 N93 R12
  15. Border Studies
    Date: 2013-11-30
    By: Donzelli, S.
    URL: http://d.repec.org/n?u=RePEc:ems:euriss:50160&r=his
    In the last two decades, a novel interdisciplinary field of inquiry has emerged under the label of Border Studies. This area of research has mainly reflected on the nature and functionalities of borders and boundaries, bringing up discussions on space, politics, economics, and culture. In particular, Border Studies have significantly contributed to the understanding of the role of borders in shaping migratory movements. In order to map this very large field of investigation, numerous state of the art reviews have been published. However, none of the reviews encountered has addressed the following issues: first, the main assumptions informing different theoretical perspectives in Border Studies; second, the application of Border Studies to analyse human mobility in the Global South. Thus, in order to participate in producing a more complete understanding of the knowledge produced in this field, the present paper pursues a! pair of objectives. One objective is to critically present the main theoretical approaches employed in the field of Border Studies, reflecting on their heuristic possibilities and limitations as well as their political implications. The other objective is to explore the intertwining of Border and Migration Studies with a specific focus on Africa, Asia and Latin America, devoting particular attention to the way this body of research has analysed the condition of migrant women workers. Overall, the essay generates suggestions for future significant investigations.
    Keywords: Borders, boundaries, migration, Global South, migrant women workers
  16. Trade, Self-Governance,and the Provision of Law and Order, with an Application To Medieval English Chartered Towns
    Date: 2013-10-23
    By: Angelucci, Charles
    Meraglia, Simone
    URL: http://d.repec.org/n?u=RePEc:tse:wpaper:27726&r=his
    We build a model to investigate the interaction between trade, the supply of law and order, and the nature of governing political institutions. To supply law and order necessary for a representative merchant to create wealth, a ruler (i) appoints officials capable of coercion and (ii) introduces a system of taxation. When potential gains from trade are important, the demand for law and order is high but appointing numerous officials capable of coercion may pave the way to arbitrary and distortive expropriation. Delegating the task of appointing offi- cials to the better-informed merchant lowers the cost of sustaining good market institutions, but exacerbates the latter’s temptation to escape taxation. When gains from trade are instead low delegation never occurs. Our theory provides a rationale for the case of post-Norman Conquest England (1066-1307) where, in parallel with the rise of trade, kings increasingly give in t! o the citizens’ desire of self-governance by granting Charters of Liberties.
    Keywords: Institutions, Law Enforcement, Trade, Delegation, Taxation, Bureaucracy
    JEL: D02 D23 D73 P14 P16
  17. Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten
    Date: 2013-12-24
    By: Carmen Reinhart
    Kenneth Rogoff
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:13/266&r=his
    Even after one of the most severe multi-year crises on record in the advanced economies, the received wisdom in policy circles clings to the notion that high-income countries are completely different from their emerging market counterparts. The current phase of the official policy approach is predicated on the assumption that debt sustainability can be achieved through a mix of austerity, forbearance and growth. The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression. As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial Repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt ! overhangs.
    Keywords: Financial crisis;Sovereign debt;Debt conversion;Debt restructuring;External debt;Public debt;Inflation;Economic growth;Developed countries;Emerging markets;Financial crises, sovereign debt crises, deleveraging, credit cycles, financial repression, debt restructuring
  18. Economic Prospects for the Long Run : a speech at Bard College at Simon’s Rock, Great Barrington, Massachusetts, May 18, 2013
    Date: 2013-05-18
    By: Bernanke, Ben S. (Board of Governors of the Federal Reserve System (U.S.))
    URL: http://d.repec.org/n?u=RePEc:fip:fedgsq:620&r=his
  19. Imperfect but Hard Competition: the Portuguese Banking Sector in the Golden Age (1950-1973)
    Date: 2013
    By: Luciano Amaral
    URL: http://d.repec.org/n?u=RePEc:unl:unlfep:wp575&r=his
    JEL codes:
    Keywords: Network competition, On/off-net pricing, Integration, Call externality
  20. How Are You, My Dearest Mozart? Well-being and Creativity of Three Famous Composers Based on their Letters
    Date: 2014-01
    By: Karol Jan BOROWIECKI (Department of Business and Economics, University of Southern Denmark)
    URL: http://d.repec.org/n?u=RePEc:tcd:tcduee:tep0114&r=his
    The well-being of a person is reflected in the language used. Building on 1,400 letters written by three famous music composers, I obtain well-being indices that span their lifetime. The validity of this methodology is shown by linking the indices with biographical information and through estimation of the determinants of well-being. I find, consistent with the literature, that work-related engagements and accomplishments are positively related with well-being, while poor health or death of a relative is detrimental. I then exploit the data and provide quantitative evidence on the existence of a causal impact of negative emotions on outstanding creativity, an association hypothesized across several disciplines since the Antiquity; however, not yet convincingly established for the case of extraordinary achievers.
    Keywords: Well-being, happiness, positive emotions, negative emotions, creativity, health, labor, composer, letters, methodology, music history.
    JEL: D60 I31 J24 N33 Z11
  21. The Triple Helix as a Highly Charged Intellectual Enterprise
    Date: 2013-09
    By: Todeva, Emanuela
    Etzkiwitz, Henry
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:52834&r=his
    Reflections on the evolution of the Triple Helix movement and the discussions at its latest conference in 2014.
    Keywords: Triple Helix, Intermediation, Governance, Theory and Practice
    JEL: H10 H42 L5 L51 O32 O38
  22. Competition/fragmentation in equities markets: A literature survey
    Date: 2013
    By: Gomber, Peter
    Sagade, Satchit
    Theissen, Erik
    Weber, Moritz Christian
    Westheide, Christian
    URL: http://d.repec.org/n?u=RePEc:zbw:safewp:35&r=his
    Advances in technology and several regulatory initiatives have led to the emergence of a competitive but fragmented equity trading landscape in the US and Europe. While these changes have brought about several benefits like reduced transaction costs, regulators and market participants have also raised concerns about the potential adverse effects associated with increased execution complexity and the impact on market quality of new types of venues like dark pools. In this article we review the theoretical and empirical literature examining the economic arguments and motivations underlying market fragmentation, as well as the resulting implications for investors’ welfare. We start with the literature that views exchanges as natural monopolies due to presence of network externalities, and then examine studies which challenge this view by focusing on trader heterogeneity and other aspects of the microstructure of equity mark! ets. —
    Keywords: Market Structure,Competition,Fragmentation,Liquidity,Market Quality
    JEL: G10

nep-his 2014-01-17, 22 papers

NEP: New Economics Papers
Business, Economic and Financial History

Edited by: Bernardo Batiz-Lazo
Bangor University
Issue date: 2014-01-17
Papers: 22

Note: Access to full contents may be restricted.
NEP is sponsored by the School of Economics and Finance of Victoria University of Wellington.
To subscribe/unsubscribe follow this link http://lists.repec.org/mailman/options/nep-his

In this issue we have:

  1. West versus East: Early globalization and thr great divergence Rafael Dobado-González; Alfredo García-Hiernaux; David Guerrero-Burbano
  2. Episodes from the Early History of Experimentation in Economics Andreas Ortman
  3. Economic ideas regarding the urban water supply service in The nineteenth century britain José Luis Ramos Gorostiza; Ana Rosado Cubero
  4. Irish Land Bonds: 1891-1938 Nathan Foley-Fisher (Research and Statistics Division, Federal Reserve Board, Washington D.C.) and Eoin McLaughlin (History, Classics & Archaeology, University of Edinburgh)
  5. Dutch Corporate Finance, 1602-1850 de Jong, A.; Jonker, J.; Roëll, A.
  6. La imagen económica de la España del siglo XVII: La mirada extranjera frente a la visión de los arbitristas Luis Perdices de Blas; José Luis Ramos Gorostiza
  7. One hundred years of solitude, accumulation and violence: A comparative historical analysis of the Sierra Nevada of Santa Marta Valley Bedoya Arias, M.E.
  8. Plenty of Land, Land of Plenty. The Agrarian Output of Portugal (1311-20) António Henriques
  9. "Colonial New Jersey’s Paper Money Regime, 1709-1775: A Forensic Accounting Reconstruction of the Data" FARLEY GRUBB
  10. Financing U.S. External Trade, 1790-1819 Javier Cuenca-Esteban
  11. The Formative Years of the Modern Corporation: The Dutch East India Company VOC, 1602-1623 Gelderblom, O.; de Jong, A.; Jonker, J.
  12. Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928 Richard S.Grossman
  13. Savings banks and cooperative banks in Europe Bülbül, Dilek; Schmidt, Reinhard H.; Schüwer, Ulrich
  14. Spatial Takeoff in the First Industrial Revolution Alex Trew
  15. Border Studies Donzelli, S.
  16. Trade, Self-Governance,and the Provision of Law and Order, with an Application To Medieval English Chartered Towns Angelucci, Charles; Meraglia, Simone
  17. Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten Carmen Reinhart; Kenneth Rogoff
  18. Economic Prospects for the Long Run : a speech at Bard College at Simon’s Rock, Great Barrington, Massachusetts, May 18, 2013 Bernanke, Ben S.
  19. Imperfect but Hard Competition: the Portuguese Banking Sector in the Golden Age (1950-1973) Luciano Amaral
  20. How Are You, My Dearest Mozart? Well-being and Creativity of Three Famous Composers Based on their Letters Karol Jan BOROWIECKI
  21. The Triple Helix as a Highly Charged Intellectual Enterprise Todeva, Emanuela; Etzkiwitz, Henry
  22. Competition/fragmentation in equities markets: A literature survey Gomber, Peter; Sagade, Satchit; Theissen, Erik; Weber, Moritz Christian; Westheide, Christian

Contents.

  1. West versus East: Early globalization and thr great divergence
    Date: 2013-08
    By: Rafael Dobado-González (Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.)
    Alfredo García-Hiernaux (Dpto. de Fundamentos del Análisis Económico II. Facultad CC. Económicas y Empresariales. Univ. Complutense de Madrid. Campus de Somosaguas, s/n. 28223 POZUELO DE ALARCÓN (MADRID).)
    David Guerrero-Burbano (Centro Universitario de Estudios Financieros, Madrid.)
    URL: http://d.repec.org/n?u=RePEc:ucm:doctra:13-08&r=his
    This paper extends our previous work on grain market integration across Europe and the Americas in the eighteenth and nineteenth centuries (Dobado, García-Hiernaux and Guerrero, 2012). By using the same econometric methodology, we now present: 1) a search for statistical evidence in the East of an “Early Globalization” comparable to the one ongoing in the West by mid eighteenth century; 2) a study on the integration of grain markets in China and Japan and its functioning in comparison to Western countries; 3) a discussion of the relevance of our findings for the debate on the Great Divergence. Our main conclusions are: 1) substantial differences in the degree of integration and the functioning of grain markets are observed between East and West; 2) a certain degree of integration may be reached through different combinations of factors (agents, policies, etc.) and with dissimilar effects on long-run economic growth;! 3) the absence of an “Early Globalization” in the East reveals the existence of some economic and institutional limitations in this part of the world and contributed to its “Great Divergence” with the West from at least the eighteenth century.Este trabajo expande nuestra investigación previa sobre la integración del mercado de granos en Europa y América (Dobado, García-Hiernaux y Guerrero, 2012). Usando la misma metodología econométrica, presentamos ahora: 1) la búsqueda de evidencia estadística en el Este de una “Globalización temprana” semejante a la encontrada en el Oeste desde mediados del siglo XVIII; 2) un estudio de la integración de los mercados en china y Japón y su funcionamiento en comparación con los países occidentales; 3) una discusión de la relevancia de nuestros resultados respecto al debate sobre la “Gran Divergencia”. Nuestras principales conclusiones son: 1) encontramos diferencias sustanciales entre Este y Oeste en lo que a! l grado de integración y al funcionamiento de los mercados de grano se refiere; 2) un cierto grado de integración puede ser alcanzado mediante combinaciones diferentes de factores (agentes, políticas, etc.) y con efectos distintos sobre el crecimiento económico a largo plazo; 3) la ausencia de una “Globalización temprana” en el Este revela la existencia de limitaciones económicas e institucionales en esta parte del mundo y contribuyó a la “Gran Divergencia” con el Oeste desde al menos el siglo XVIII.
    Keywords: Economic history, Market integration, Globalization, Great divergence, Time series analysis, Historia económica, Integración de mercados, Globalización, Gran divergencia, Series temporales.
    JEL: C22 F15 N10 N70
  2. Episodes from the Early History of Experimentation in Economics
    Date: 2013-12
    By: Andreas Ortman (School of Economics, Australian School of Business, the University of New South Wales)
    URL: http://d.repec.org/n?u=RePEc:swe:wpaper:2013-34&r=his
    Keywords: Experimental methods, Early History of Experimentation in Economics
    JEL: B41 C9
  3. Economic ideas regarding the urban water supply service in The nineteenth century britain
    Date: 2013
    By: José Luis Ramos Gorostiza (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid, Campus de Somosaguas,s/n. 28223 Pozuelo de Alarcón (Madrid) – SPAIN)

    Ana Rosado Cubero (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense, Campus de Somosaguas. 28223 Pozuelo de Alarcón (Madrid), Spain.)

    URL: http://d.repec.org/n?u=RePEc:ucm:doctra:13-03&r=his
    By the mid-nineteenth century, along with other network infrastructurestypical of the Second Industrial Revolution, began to take shape the modern system of water supply. The purpose of this paper is to examine the major economic ideas surrounding the beginnings of this new urban service in Britain during the second half of the nineteenth century, which marked a starting point for future analytical developments. First, the socioeconomic importance of improvement of public health through an intensive use of running water. Second, the emergence of the concept of natural monopoly. And finally, the debate about the organization of service management. This interesting case gives us the opportunity to observe the interaction, in both directions, between facts and economic ideas.Hacia mediados del siglo XIX, junto a otras infraestructuras en red propias de la segunda revolución industrial, empezó a configurarse el sistema mod! erno de abastecimiento de agua potable. El propósito de este trabajo es examinar las principales ideas económicas que rodearon los inicios de este novedoso servicio urbano en Gran Bretaña durante la segunda mitad del siglo XIX, y que marcaron un punto de arranque para futuros desarrollos analíticos. Primero, la importancia socioeconómica de la mejora de la salubridad pública a través de un uso intensivo de agua corriente. Segundo, el surgimiento de la noción de monopolio natural. Y tercero, el debate en torno a la mejor forma de organizar la gestión del servicio. Lo interesante del caso es que nos ofrece la posibilidad de observar la interacción, en ambos sentidos, entre hechos e ideas económicas.
    Keywords: Urban water supply, Great Britain, Public health, Natural monopoly, History of economic thought, Abastecimiento urbano de agua, Gran Bretaña, Salud pública, Monopolio natural, Historia del pensamiento económico.
    JEL: B00 B10
  4. Irish Land Bonds: 1891-1938
    Date: 2014-01-08
    By: Nathan Foley-Fisher (Research and Statistics Division, Federal Reserve Board, Washington D.C.) and Eoin McLaughlin (History, Classics & Archaeology, University of Edinburgh)
    URL: http://d.repec.org/n?u=RePEc:edn:esedps:239&r=his
    This paper introduces a new database on Irish land bonds listed on the Dublin Stock Exchange from 1891 to 1938: it outlines the nature of these bonds and presents data on their size, liquidity and market returns. These government-guaranteed bonds arose during a period when the possibility of Irish secession from the United Kingdom appeared ever more likely, and were used to finance the transfer of land ownership from landlords to tenants in Ireland (North & South). Movements in the prices of these bonds can help to understand how financial markets responded to events in the early economic and political history of the Irish Free State, including Irish partition, Independence, Civil War and de facto default. Understanding these issues has contemporary relevance for regions in Spain (Catalonia, Euskadi), Great Britain (Scotland) and Belgium (Flanders).
    Keywords: Irish economic history, land reform, land bonds, Dublin Stock Exchange.
    JEL: N23 N24 N53 N54 G15
  5. Dutch Corporate Finance, 1602-1850
    Date: 2013-06-04
    By: de Jong, A.
    Jonker, J.
    Roëll, A.
    URL: http://d.repec.org/n?u=RePEc:ems:eureri:40333&r=his
    Early Modern Dutch corporate finance had two notable features, a remarkable ease of raising large amounts of capital and a flexible legal framework. Having pioneered new corporate forms with two intercontinental trading companies, Dutch business adopted such forms on a wider scale only during the 18th century, when economic concentration and consolidation led to the appearance of business units large enough to need them. The financial intermediation and legal institutions available also facilitated early industrialization during the 19th century, up to and including the railways. The large export of capital throughout the period under consideration failed to harm economic development at any point or in any way.
    Keywords: corporate finance
    JEL: G3 M00
  6. La imagen económica de la España del siglo XVII: La mirada extranjera frente a la visión de los arbitristas
    Date: 2013-05
    By: Luis Perdices de Blas (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid, Campus de Somosaguas,s/n. 28223 Pozuelo de Alarcón (Madrid) – SPAIN)

    José Luis Ramos Gorostiza (Departamento de Historia e Instituciones Económicas I. Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid, Campus de Somosaguas,s/n. 28223 Pozuelo de Alarcón (Madrid) – SPAIN)

    URL: http://d.repec.org/n?u=RePEc:ucm:doctra:13-04&r=his
    The economic image of the seventeenth century Spain: The foreign look versus the viwof the Arbitristas This paper compares the economic image of the seventeenth century Spain we received from the foreign travelers with that offered by the arbitristas, examining the main similarities and differences. Specifically, it analyses the following issues: the consideration of natural resources base, the vision of national character and its relation to productive activities, and the perception of economic situation and the causes of backwardness. The aim is to contrast the view of those who were thinking "from the inside" about the causes of the striking decline of the country, with the free and uncensored look of foreign visitors, which –despite its constraints and limitations– tended to focus on the most striking and different aspects compared to the reality of their own countries.Este trabajo compara la imagen económica de! la España del siglo XVII que nos transmitieron los viajeros extranjeros con la ofrecida por los arbitristas, examinando las principales similitudes y diferencias. En concreto, se detiene en las siguientes cuestiones: la consideración del medio natural, la visión del carácter nacional y de su relación con las actividades productivas, y la percepción de la situación económica y de las causas del atraso. Se trata de contrastar la opinión de aquellos que estaban reflexionando “desde dentro” sobre las causas de la llamativa decadencia del país, con la mirada libre y sin censuras del visitante extranjero, que –pese a sus condicionantes y limitaciones– tendía a fijarse en los aspectos más llamativos y diferentes respecto a la realidad de su propio país de origen.
    Keywords: Travelers, Arbitristas, Economy, Spain, Seventeenth century, History of economic thought, Viajeros, Arbitristas, Economía, España, siglo XVII, Historia del pensamiento económico.
    JEL: B00 B10
  7. One hundred years of solitude, accumulation and violence: A comparative historical analysis of the Sierra Nevada of Santa Marta Valley
    Date: 2013-03-18
    By: Bedoya Arias, M.E.
    URL: http://d.repec.org/n?u=RePEc:ems:euriss:39199&r=his
    This is an analysis of two moments in the Colombian history within a century of difference, where isolation, accumulation and violence interact in a region brought into the worlds’ imaginary by the Colombian novelist Gabriel García Márquez in One Hundred years of Solitude. A valley between four natural borderlines: the Sierra Nevada of Santa Marta, the Perijá hills, the Central and East ‘Cordilleras’ -mountain range- and the Magdalena River in the departments of Cesar and Magdalena (Colombia) part of what was called the department of ‘Magdalena Grande’ was blessed – or perhaps coursed – with wealth in natural resources; plenty of water streams, a unique biodiversity, cultural affluence and immense reserves of one of the purest steam coals. This paper attempts to draw a picture of the superimposed and persistent power structures that apparently facilitate the accumulative processes and imbalances within o! ne century of difference, making use of violence as means to maintain equilibrium. Environment is changed trough politicized violent inflictions over society and nature. The resultant scars are the ones inflicted on a collective memory, as this valley is and will always be recalled by the poetic truth of the narrative of Gabriel García Marquez who recreated this mythic environment as ‘Macondo’. He remembers his own story of early childhood that here serves as an excuse to analyze a region that is again being bled by accumulation.
    Keywords: Colombia, accumulation, banana, coal, extraction enclaves, isolation, political ecology of violence, violence
  8. Plenty of Land, Land of Plenty. The Agrarian Output of Portugal (1311-20)
    Date: 2014-01
    By: António Henriques (Faculdade de Economia, Universidade do Porto)
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:520&r=his
    This article presents a benchmark for Portuguese agrarian output for the 1311-20 decade. This benchmark is built from the supply side, using the value of ecclesiastical tithes, and tested with macro and micro level demand-side information. Compared with existing estimates for contemporary England, real Portuguese per capita agrarian output appears high. This result challenges the received wisdom that by 1320 Portugal was hard-pressed by demographic forces. Instead, it confirms that by 1320, Portugal was a ‘frontier economy’ with a high land/labour ratio and a high per capita output level.
    Keywords: Economic History, Agriculture, Living Standards, Frontier Economy
    JEL: N53
  9. "Colonial New Jersey’s Paper Money Regime, 1709-1775: A Forensic Accounting Reconstruction of the Data"
    Date: 2014
    By: FARLEY GRUBB (Department of Economics,University of Delaware)
    URL: http://d.repec.org/n?u=RePEc:dlw:wpaper:14-05.&r=his
    Forensic accounting techniques are used to construct new data series on emissions, redemptions, and bills outstanding for colonial New Jersey paper money. These components are further separated into the amounts initially legislated and planned, and the amounts actually executed. Not only are these data improvements over the prior data in the literature, but they provide a more complete and nuanced accounting of colonial New Jersey’s paper money regime than what has been done previously for any British North American colony. Enough detail of the forensic accounting exercise is given for scholars to reproduce the data series from the original sources.
    Keywords: bills of credit, colonial money supply, land banks, monetary redemption, paper money
    JEL: E51 N11
  10. Financing U.S. External Trade, 1790-1819
    Date: 2013-12
    By: Javier Cuenca-Esteban (Department of Economics, University of Waterloo)
    URL: http://d.repec.org/n?u=RePEc:wat:wpaper:1308&r=his
    In the "neutrality years" 1793-1807 and beyond, U.S. merchants drew on Spanish-American silver to finance their carrying trade and to settle deficits with Europe and the Far East. The size and direction of these payments must remain unknown, because no records of silver flows were kept until 1821. This paper infers the financial claims and liabilities involved from estimated balances of trade and services at foreign ports by geographic areas. It suggests that the seemingly central role of Spanish silver pesos in financing U.S. deficits with China is only partially explained by legal exchange between the United States and Spain, Spanish America, or Europe. The weight of evidence and argument thus points to any additional silver coin that U.S. merchants may have secured through unofficial exports directly to Spanish America.
    JEL: N71 N73 N75 N76 N77 N41 N43 N45 N46 N47
  11. The Formative Years of the Modern Corporation: The Dutch East India Company VOC, 1602-1623
    Date: 2012-06-23
    By: Gelderblom, O.
    de Jong, A.
    Jonker, J.
    URL: http://d.repec.org/n?u=RePEc:ems:eureri:32952&r=his
    With their legal personhood, permanent capital with transferable shares, separation of ownership and management, and limited liability for both shareholders and managers, the Dutch East India Company (VOC) and subsequently the English East India Company (EIC) are generally considered a major institutional breakthrough. Our analysis of the business operations and notably the financial policy of the VOC during the company’s first two decades in existence shows that its corporate form owed less to foresight than to constant piecemeal engineering to remedy original design flaws brought to light by prolonged exposure to the strains of the Asian trade. Moreover, the crucial feature of limited liability for managers was not, as previously thought, part and parcel of that design, but emerged only after a long period of experimenting with various, sometimes very ingenious, solutions to the company’s financial bottlenecks.
    Keywords: Dutch East India Company, VOC
    JEL: F1 O1 O43
  12. Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928
    Date: 2014-01
    By: Richard S.Grossman (Department of Economics, Wesleyan University)
    URL: http://d.repec.org/n?u=RePEc:wes:weswpa:2014-001&r=his
    This paper presents data on quantity, capital gains, dividend, and total returns for domestic and overseas equities listed on the London Stock Exchange during 1869-1928. Indices are presented for Africa, Asia, Europe, Latin America, North America, Australia/New Zealand and for the finance, transportation, raw materials, and utilities sectors in each region. Returns and volatility were typically highest in emerging regions and the raw materials sector. Dividend yields were similar across regions and differences in total returns were due largely to disparities in capital gains. Returns of firms in more industrial markets were relatively highly correlated with each other and with developing regions with which they had substantial colonial or trade connections. Contingent liability was most extensively employed where leverage was high and the physical assets were either meager or inaccessible to creditors.
  13. Savings banks and cooperative banks in Europe
    Date: 2013
    By: Bülbül, Dilek
    Schmidt, Reinhard H.
    Schüwer, Ulrich
    URL: http://d.repec.org/n?u=RePEc:zbw:safewh:5&r=his
    Until about 25 years ago, almost all European countries had a so-called three pillar banking system comprising private banks, (public) savings banks and (mutual) cooperative banks. Since that time, several European countries have implemented far-reaching changes in their banking systems, which have more than anything else affected the two pillars of the savings and cooperative banks. The article describes the most important changes in Germany, Austria, France, Italy and Spain and characterizes the former and the current roles of savings banks and cooperative banks in these countries. A particular focus is placed on the German case, which is almost unique in so far as the German savings banks and cooperative banks have maintained most of their traditional features. The article concludes with a plea for diversity of institutional forms of banks and argues that it is important to safeguard the strengths of those types of ba! nks that do not conform to the model of a large shareholder-oriented commercial bank. —
  14. Spatial Takeoff in the First Industrial Revolution
    Date: 2014-01-01
    By: Alex Trew (University of St Andrews)
    URL: http://d.repec.org/n?u=RePEc:san:cdmawp:1401&r=his
    Using the framework of Desmet and Rossi-Hansberg (forthcoming), we present a model of spatial takeoff that is calibrated using spatially-disaggregated occupational data for England in c.1710. The model predicts changes in the spatial distribution of agricultural and manufacturing employment which match data for c.1817 and 1861. The model also matches a number of aggregate changes that characterise the first industrial revolution. Using counterfactual geographical distributions, we show that the initial concentration of productivity can matter for whether and when an industrial takeoff occurs. Subsidies to innovation in either sector can bring forward the date of takeoff while subsidies to the use of land by manufacturing firms can significantly delay a takeoff because it decreases spatial concentration of activity.
    Keywords: Endogenous growth, first industrial revolution, economic geography, structural change.
    JEL: O11 O18 O33 N13 N93 R12
  15. Border Studies
    Date: 2013-11-30
    By: Donzelli, S.
    URL: http://d.repec.org/n?u=RePEc:ems:euriss:50160&r=his
    In the last two decades, a novel interdisciplinary field of inquiry has emerged under the label of Border Studies. This area of research has mainly reflected on the nature and functionalities of borders and boundaries, bringing up discussions on space, politics, economics, and culture. In particular, Border Studies have significantly contributed to the understanding of the role of borders in shaping migratory movements. In order to map this very large field of investigation, numerous state of the art reviews have been published. However, none of the reviews encountered has addressed the following issues: first, the main assumptions informing different theoretical perspectives in Border Studies; second, the application of Border Studies to analyse human mobility in the Global South. Thus, in order to participate in producing a more complete understanding of the knowledge produced in this field, the present paper pursues a! pair of objectives. One objective is to critically present the main theoretical approaches employed in the field of Border Studies, reflecting on their heuristic possibilities and limitations as well as their political implications. The other objective is to explore the intertwining of Border and Migration Studies with a specific focus on Africa, Asia and Latin America, devoting particular attention to the way this body of research has analysed the condition of migrant women workers. Overall, the essay generates suggestions for future significant investigations.
    Keywords: Borders, boundaries, migration, Global South, migrant women workers
  16. Trade, Self-Governance,and the Provision of Law and Order, with an Application To Medieval English Chartered Towns
    Date: 2013-10-23
    By: Angelucci, Charles
    Meraglia, Simone
    URL: http://d.repec.org/n?u=RePEc:tse:wpaper:27726&r=his
    We build a model to investigate the interaction between trade, the supply of law and order, and the nature of governing political institutions. To supply law and order necessary for a representative merchant to create wealth, a ruler (i) appoints officials capable of coercion and (ii) introduces a system of taxation. When potential gains from trade are important, the demand for law and order is high but appointing numerous officials capable of coercion may pave the way to arbitrary and distortive expropriation. Delegating the task of appointing offi- cials to the better-informed merchant lowers the cost of sustaining good market institutions, but exacerbates the latter’s temptation to escape taxation. When gains from trade are instead low delegation never occurs. Our theory provides a rationale for the case of post-Norman Conquest England (1066-1307) where, in parallel with the rise of trade, kings increasingly give in t! o the citizens’ desire of self-governance by granting Charters of Liberties.
    Keywords: Institutions, Law Enforcement, Trade, Delegation, Taxation, Bureaucracy
    JEL: D02 D23 D73 P14 P16
  17. Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten
    Date: 2013-12-24
    By: Carmen Reinhart
    Kenneth Rogoff
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:13/266&r=his
    Even after one of the most severe multi-year crises on record in the advanced economies, the received wisdom in policy circles clings to the notion that high-income countries are completely different from their emerging market counterparts. The current phase of the official policy approach is predicated on the assumption that debt sustainability can be achieved through a mix of austerity, forbearance and growth. The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression. As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial Repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt ! overhangs.
    Keywords: Financial crisis;Sovereign debt;Debt conversion;Debt restructuring;External debt;Public debt;Inflation;Economic growth;Developed countries;Emerging markets;Financial crises, sovereign debt crises, deleveraging, credit cycles, financial repression, debt restructuring
  18. Economic Prospects for the Long Run : a speech at Bard College at Simon’s Rock, Great Barrington, Massachusetts, May 18, 2013
    Date: 2013-05-18
    By: Bernanke, Ben S. (Board of Governors of the Federal Reserve System (U.S.))
    URL: http://d.repec.org/n?u=RePEc:fip:fedgsq:620&r=his
  19. Imperfect but Hard Competition: the Portuguese Banking Sector in the Golden Age (1950-1973)
    Date: 2013
    By: Luciano Amaral
    URL: http://d.repec.org/n?u=RePEc:unl:unlfep:wp575&r=his
    JEL codes:
    Keywords: Network competition, On/off-net pricing, Integration, Call externality
  20. How Are You, My Dearest Mozart? Well-being and Creativity of Three Famous Composers Based on their Letters
    Date: 2014-01
    By: Karol Jan BOROWIECKI (Department of Business and Economics, University of Southern Denmark)
    URL: http://d.repec.org/n?u=RePEc:tcd:tcduee:tep0114&r=his
    The well-being of a person is reflected in the language used. Building on 1,400 letters written by three famous music composers, I obtain well-being indices that span their lifetime. The validity of this methodology is shown by linking the indices with biographical information and through estimation of the determinants of well-being. I find, consistent with the literature, that work-related engagements and accomplishments are positively related with well-being, while poor health or death of a relative is detrimental. I then exploit the data and provide quantitative evidence on the existence of a causal impact of negative emotions on outstanding creativity, an association hypothesized across several disciplines since the Antiquity; however, not yet convincingly established for the case of extraordinary achievers.
    Keywords: Well-being, happiness, positive emotions, negative emotions, creativity, health, labor, composer, letters, methodology, music history.
    JEL: D60 I31 J24 N33 Z11
  21. The Triple Helix as a Highly Charged Intellectual Enterprise
    Date: 2013-09
    By: Todeva, Emanuela
    Etzkiwitz, Henry
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:52834&r=his
    Reflections on the evolution of the Triple Helix movement and the discussions at its latest conference in 2014.
    Keywords: Triple Helix, Intermediation, Governance, Theory and Practice
    JEL: H10 H42 L5 L51 O32 O38
  22. Competition/fragmentation in equities markets: A literature survey
    Date: 2013
    By: Gomber, Peter
    Sagade, Satchit
    Theissen, Erik
    Weber, Moritz Christian
    Westheide, Christian
    URL: http://d.repec.org/n?u=RePEc:zbw:safewp:35&r=his
    Advances in technology and several regulatory initiatives have led to the emergence of a competitive but fragmented equity trading landscape in the US and Europe. While these changes have brought about several benefits like reduced transaction costs, regulators and market participants have also raised concerns about the potential adverse effects associated with increased execution complexity and the impact on market quality of new types of venues like dark pools. In this article we review the theoretical and empirical literature examining the economic arguments and motivations underlying market fragmentation, as well as the resulting implications for investors’ welfare. We start with the literature that views exchanges as natural monopolies due to presence of network externalities, and then examine studies which challenge this view by focusing on trader heterogeneity and other aspects of the microstructure of equity mark! ets. —
    Keywords: Market Structure,Competition,Fragmentation,Liquidity,Market Quality
    JEL: G10

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