Browsing by Subject "Holy Roman Empire"

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Lord of the Lemons : origin and dynamics of state capacity
(2017) Wahl, Fabian; Huning, Thilo R.
To better understand the role of taxation in the emergence of states, this article presents an incomplete contract model of an agricultural society in which information asymmetries cause inefficient taxation, and hence outmigration, uprisings, and rent-seeking, but also urbanization. We propose a geographic index of information costs, observability, to test our model. Our case study is the Holy Roman Empire, which had a relatively homogeneous institutional framework, state of technology, culture, and ethnic composition across hundreds of observed states, for over 500 years. We find a robust link between observability and states’ tax capacity, their size, and their survival.
Trade and political institutions in late medieval European cities : origins and long-run consequences
(2016) Wahl, Fabian; Lehmann-Hasemeyer, Sibylle
The first part of the thesis establishes a link between medieval trade, agglomeration and contemporary regional development in ten European countries. It documents a significant positive relationship between involvement in medieval trade and regional economic development today. The analysis indicates that a long-lasting effect of medieval trade on contemporary regional development is transmitted via its effect on agglomeration and industry concentration. Further empirical analyses show that medieval trade positively influenced city development both during the medieval period and in the long run; they also reveal a robust connection between medieval city growth and contemporary regional agglomeration and industry concentration. This research highlights the long-run importance of medieval trade in shaping the development of cities as well as the contemporary spatial distribution of economic activity throughout Europe. Next, a new city-level data set on political institutions in pre-modern Europe is introduced. It comprises of three variables reporting the prevalence of the different existing types of participative political institutions between 800 and 1800 AD in 104 cities in the Holy Roman Empire. According to historical studies, the three included measures (guild participation in the city council, participative election procedures and the existence of institutionalized burgher representation) represent the universe of political institutions in cities in this era. Based on this data, the next chapter of the thesis investigates the origins of guild revolts and participation in the government of late medieval central European cities. It finds that structural factors, i.e. the prosperity of proto-industry and exogenous events like the agricultural crisis were factors triggering the revolts. Medieval trade cities had a lower probability of guild participation indicating that not economic prosperity per se is decisive but rather that formerly poor groups of citizens like craftsmen profited from the economic upswing. The study also finds evidence for the existence of spatial spillovers implying that strategic considerations played a role in the spread of the revolts. Finally, I investigate the effect of the rise of participative political institutions in late medieval central European cities on city development. The results show, that the enlargement of political participation is not always conducive to city development. The participation of guilds in the city council, for example had an overall neutral or negative effect. Furthermore, the effect of guild participation is declining over time, implying that this form of PPI is prone to institutional degeneration and increased rent-seeking. Election of city government by the citizens, in contrast, shows a stable and robustly positive effect on city development. Hence, the decisive point for more political participation being conducive for economic development is that the increase in participation is accompanied by increased accountability of the politicians and a politics that is oriented toward public welfare than the special interests of particular groups.