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absolutism in Europe, effect of, 267, 62 inter-state conflict, 27 power of monarch, 267 Africa, political fragmentation, 174 agricultural employment, Europe, 289 agricultural goods in Mediterranean olive oil and wine, 94 agricultural goods price data, 789, 111 agricultural productivity, 33, 149 Belgium, 56 Europe, 14001800, 29, 91, 95 markets, 153 agricultural revolution in England, 33, 62 agriculture Mediterranean, 946 Amsterdam Exchange Bank, 1611 stock exchange, 33 Anglo-Dutch Wars, 61 Anglo-Saxon market economy invasion from Vikings, 63 Antwerp open sea access, 57 siege of, 15845, 69 Atlantic trade, 25, 93 Balkans, wheat price data, 77 Baltic, 21, 128 banking panics, 121 banking pioneers, 120 Italian cities, 99 banking system, 3, 11921, 177 deposit-taking, Stockholm Bank, 120 Barcelona, 523 Belgium agricultural productivity, 56 internal markets, 56 market history, 569, 139 urbanization, 56

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Cameralism, 134 canal network, England, Holland, France, 67, 126 candles, price convergence of, 11213 Cape of Good Hope exploration, 93 capital markets, 3, 113, 120 credit, 118 insurance, 118 Italian pioneers, 123 medium of exchange, 11819 Castile and Aragon, marriage uniting, 53 cathedral construction, 17 Catholic and Protestant struggles, 27 Champagne Fairs in Europe, 20 Charlemagne, Holy Roman Emperor, 800 AD unity for Europe, 14 China, market-based policies, 45 Christendom power, 170 equality of all before law, 17 Christian and Arabs, division, 14 Christian-Muslim war, 148192, Spain, 52, 53

bills of exchange, 119 bivariate regression results, 146 Black Death 134851, 22, 389, 171 acceleration of state development, 245 in France, 66 labour shortages, 116 Bologna University, 17 bond issue, 174 borrowers, 3 Bretton Woods, 37 British currency symbols, l.s.d of Italian origin, 19 Byzantine Empire, 13

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Markets and Growth in Early Modern Europe Cracow historic trading records products from Black Sea, England, Italy Baltic, 71 craft guilds, 1718, 170 credit, 119 expansion in medieval Europe, 120 for wars, 121 customs duties, 65 CV (see coefficient of variation) Dark Ages of Western Europe, 13 debt, 176 defence systems, early England, 63 demographic crisis, Malthusian view, 223 discount houses, Medici and Rothschilds, 120 disease travelling with trade, 22 division of labour, 2 domestic markets in Spain, 54 Dutch as naval and land power, 61 Dutch Disease, 179 Dutch East India Company, 32 Dutch explorations, 93 Dutch Republic, 59, 133, 134 Dutch trading policies, 32 eastern connections, Constantinople (Istanbul) Ottoman Empire, 73 economic growth, 1, 132 institutions, England, Dutch Republic, 157 economic models, 175 economic policy, modern day, 16782 economic progress, 150 economies of scale, 41, 178 Efficient Market Hypothesis (EMH), 175 emigration to USA, 36 Emperor Constantine, capital shift to Constantinople, 13 England market development experience, 626, 1378 mercantilist policy, 138 England and Low Countries, market trading, 212 England and Netherlands, 289 English challenge to Dutch markets, 61

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Christianity in Medieval Europe aid to learning, 17 Christopher Columbus, Spanish explorer, 25, 53 church authority, common language, Latin, 17 cinnamon, cloves and ginger prices spice route, 113 city level growth regression (I.V.), 166 city-level growth regression (P.C.S.E), 166 city-level results, 1656 data on real wage and population, 1545 link between markets and growth, 1545 city states, 17, 170 of Italy, conflict in, 5051 Civil Wars, England, 27 class-conflict, 23 climactic variability in Mediterranean, 94 climate factor, 129 cloth Dutch versus Italian, 96 trade in early Europe, 18 coal, importance of, in Britain, 356, 61 coastal location, advantages Mediterranean shores, 1278 coastline and harbours of Italy, benefits, 49 coastline of France, a benefit, 140 coefficient of variation, 48, 109 (see also volatility calculation) coinage, stable, 12, 64 Colbert, Jean-Baptiste, French Minister of Finance mercantilist policy of, 134 colonial imports to Spain, 53 commercial economy of Holland, 59 commercial trade and knowledge exchange, 25 commercialization in early Europe, 18 communication technologies, telegraph, 36 communism in Soviet Union, 167 cooperation in societies, 167 corruption opportunities, 156 country-level growth regression (LV.), 165 country-level growth regressions (P.C.S.E.), 1645 country-level market estimates, 79 country-level regression results, 1523 data affecting market integration, 1446

Index English Navigation Act, 1651, fall in Dutch trade, 61 English protectionism, 34 Enlightenment in Europe, 1589, 172 effect on technological change, 35 progress from, 157 European factor markets land, labour, capital, 11318 European GDP, 150 European markets ancient to end of medieval, 1067 medieval to 19th century, 10713 European Marriage Pattern, Girlpower result of Black Death, 24 European Population (ex. Russia), 131 exchange medium, 2 exchange rate system, 37 factor markets, 114, 122 factor prices, 159161 in Britain, 160 farming structure, France, 66 feudalism, 115, 168 Britain, 23 decline, 16, 23 in eastern Europe, 72 of knights, 1516 in Russia, 116 in Saxony, 71 see also peasants finance, 99 British, 62 financial crisis, 176 financial services in Italy, 99 fire insurance, 122 fiscal system centralization, 133, 1567 Flanders English trade with, 65 Italys rival in wealth, 20 woollen cloth, 2021 Florence, Italy, 25 food shortages in Spain, 53 forced labour, 115 foreign trade, impact of, 161 fortification of towns, early England, 63 France market development, 14041 market history, 669 free trade and de-industrialization, 178 free trade policies, 134, 177 freedom of peasantry, 16 free-market connections in England, 66 economic theory, 7, 9 economists, 56 French market development, effect of taxation, war, 66 Fronde, France (164853), 66

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GARCH model, 86, 106 on volatility of stock markets, 48 wheat prices, 86 Genoa, financial centre, 99 Genoa shipbuilding, 979 Genoese merchants, 19 geography, 12730 data affecting market integration, 143 England, coast and low elevation, 128 Europe for trading, 16970 France, transport infrastructure, poor, 67 Italian coastline, 128 mountainous areas, negative for trade, 128 market development and, 142 Netherlands, 138 German trade, losing to Holland, 70 Germany, market history, 6971 gift exchange by societies, 167 global recession, 38 Glorious Revolution, 1688, England, 4, 334 market transformation, 623 Gold Standard, 36 Golden Age of world economy, 15801650, 37, 5960 goods markets in Europe, 114 goods other than wheat soap, candles, linen, 8990 grain exports, 74 grain from Romania and Baltic, 94 Grain Invasion, 73 grain market integration, 45 grain prices Ancient Babylonia, 1067 annual, sixteenth century, 46 data, 44, 467 in early modern Europe, 45

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Markets and Growth in Early Modern Europe insurance industry London, 122 medieval Italy, 122 interest rates, 121 International Institute of Social History, 46 International Scientific Committee on Price History (ISCPH), 44 invasion risks, 6 investment, 7 in human capital, 155 in manufacturing, 33 in physical capital, 155 in warships, 133 Islamic expansion, 13 island position of England, 138 Italian trade with east, 50 Italian wheat market integration with Europe, 512 Italy commercialization, Venice, Pisa, Genoa, 19 market development, 13940 market history, 4952 Joan of Arc, 66 Johansen vectorerrorcorrectionmodel (VECM), 48 justice system, 27 Keynes, John Maynard General Theory of Employment, 68 labour limitation by slavery, 11518 market integration, 117 migration, skilled, 11718 skilled, 423 laissez-faire approach, 158 land markets, 115 land reclamation in Holland, 59 law and order, early England, 63 legal system, 6, 64 Levant Company, 1581, 74 linen, price convergence for, 11213 Lombards in Italy, 13 Louis XIV, great power, absolutism, 66 Low Countries under Spanish rule fight for independence, 58

grain trade in France, deregulation, 67 Great Depression, 1930s, 8, 36, 38 Great Famine, northern Europe 131522, 22 Great Fire of London, 1666 fire insurance, 122 Hansa cities, Baltic coast reciprocal trading agreements, 21 Hanseatic League, 93 decline, 1590, 70 German trading, 69 Henry VIII, divorce outcome for England, 27 herring fishing off Holland, 32 Holland as non-absolutist state, success of, 60 Holland, settlement of, 59, 60 Hollands Golden Age of economy independence from Spain, 31 hunter-gatherer society, 12 Iberian success, 26 import discouragement, 74 income equality in Holland, 59 India market-based policies, 45 slums and billionaires, 5 Indian Ocean exploration, 93 spice trade with Venice, 100 Industrial Revolution, British, 11, 358, 62, 66, 105, 149, 159, 1723 industrialization in England, 66 response to colonial demand, 34 infant industry protection, 1789 information flows, 173 institutions, 127, 1326 bankruptcy law, 1767 data affecting market integration, 144 democracy, 176 fiscal centralization, 155 intellectual property rights, 176 market development, 142 parliamentary democracy, 155 state system, 155 insurance from capital markets, 122 from risk, 6

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Index Lubeck city, Germany rich trades, 69 luxury goods, 16 to Europe from east, 734 Magna Carta, 17 Malthusianism, 34 manufacturing on Mediterranean, 967 marine insurance, 127, 171 shipwrecks and piracy, 122 maritime powers of Mediterranean, 92 maritime trade, Italy and north-west Europe, 2021 market activity in Britain, 64 adjustment, 48, 108 deterioration in early west, 14 disadvantages, 175 disintegration, 181 Dutch deterioration, 612 failures, 56 market development, 778, 10513, 12537 determinants, 41, 125 market histories of countries, 4877 market instability, 1756 market integration, 434, 91, 102, 10523, 10910, 144 market measurement, 10, 428 market regulation, 1356 market solution self-interest for common good, 168 markets Dutch Republic, early advancement, 60 economic growth, 8, 14966 future of, 182 geography, institutions, and state, 1367 global, 36 undeveloped in Ottoman Empire, 76 marriage, higher age of, 24, 116 mathematical knowledge, lack, 119 mean-variance approach, 175 medieval commercial development, Poland, 71 medieval communes, 17 Mediterranean early modern market integration, 914 products from the different countries, 92

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nation states solution to problems, 1323 natural resources, 179 Navigation Act, 1651, England, 62, 122, 134 Netherlands market development, 1389 market history, 5962 strong trading nation, 312 Netherlands geography, coast and low elevation, 128 Netherlands republicanism, 33 New Classical Model, 175 north-west region early modern market integration, 91 superiority in volatility, 85 European wealth, 91 oak trees, mass deforestation in England, 35 olive trees and vines for Mediterranean, 95 open field village system, 167 Orient, interest in, 25 Ottoman Empire, 737 domestic markets, 75

Mediterranean and north-west markets, 100104 coefficient of variation, 103 integration with rest of Europe, 102 market development levels, 102 speeds of adjustment, 103 Mediterranean integration with north-west, 97 Mediterranean manufacturing north of the Alps, 967 Mediterranean trade in Roman times, 126 Mediterranean wealth decline, 91 mercantilist policy, 613, 134, 161 merchant class lack in Spain, 54 merchant guilds, 1718, 170 Merovingians in Gaul, 13 migration, 132 military activity in France, fall in, 140 mixed economy, 37 money lenders, Jewish, 119 moral hazard, 6 Muslim Europe technological advance to thirteenth century, 13

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and European market, 75 international trade, 73 lack of infant industry, 74 land ownership by state, 76 market history 737 Ottoman merchants abroad, lack of support, 76 Oxford University, 17

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wheat price data, 47 of workers wages, 117 price fluctuations, 86 price gaps, Belgium, 58 betweencountry and within country, 47, 110 early England, 646 France, 679 Paris University, 17 for nonwheat products, 8990 parliaments and market development, 1334 Germany, 70 patents, 6 Istanbul, 77 peasants Italy, 5052 feudalism, 1516 Mediterranean and north-west, 101 freedom restrictions, Poland, 723 Spain, 545 power, 23 price volatility, 10, 423, 478 Peasants Revolt, England, 23 property rights, 4, 27, 115, 170 peat bogs in Holland, 59 Persson, K. G., Grain Markets in Europe, 107 protectionist policies, 52, 63, 1779 pin-making example, 2 railway building, 36 plague victims, 22 in Ottoman region, 75 Poland, market history, 713 raw price gaps policing of the seas, 98 between countries, cities, 8082 Polish trade disruptions, Ottoman expanReagan, Ronald, policies, 8 sion, 72 real wage and markets, 153 political institutions in Britain, 177 real wage growth political fragmentation, 18081 for economic growth, 163 population real wages, 30, 14950 collapse and economy, 23 recessions, 7 density benefits, 127, 13032, 1368, Reformation onset, 27 142, 153 religious intolerance, 27 high, in Italy, 50 religious toleration in Netherlands, 33 population growth Renaissance period, 25, 171 advantages of, 17071 resource curse, 179 in Britain, 62, 160 road transport methods, 126 for economic growth, 163 Roman banks, 12 encouragement for trade and Roman coins, 12 market expansion, 171 Roman economy in east, 13 result of, 278 in Roman times, 12 Roman Empire population recovery, 30 feudalism, 169 Portuguese explorations, 93 invasion of Britain AD 42, 1112 Portuguese spice trade, 25, 578 political fragmentation after, 132 power at state level, 156 property rights, 170 price adjustment (see speed of price adjustRoyal Navy, 133 ment) savers, 3 price convergence, 10, 423, 95, 108, 10910, 112113 saving and borrowing, 119 in Italy, 52 scientific advance, economic growth, 171

Index scientific approach factor, European growth, 161 scientific societies, Enlightenment activity, 158 Scottish Widows, insurance in Scotland, 122 serfdom (feudalism) decline, 16 shipbuilding in Italy and Holland, 126 shipbuilding industry, British, 62 shipping, 979 dominance of Holland, 70, 94 improved practice, 19 Mediterranean, 989 progress in, 126 Silk Road from China, 13 silver in Ming China, trade with Venice, 100 slave economy, 26, 168 Smith, Adam, Wealth of Nations, 12, 4, 9, 91, 158 soap, price convergence for, 95, 11113 social mobility in Holland, 59 Soviet Union, fall of communism, 4 Spain inland, no transport improvements, 142 market development, 141 market history, 526 politically fragmented country, 54 Castile and Aragon, 524 speed of price adjustment, 10 spice trade, 25, 99100 from Ottoman Empire, 74 stagflation, 7 Staple Act 1663, England, 134 state European growth, 161 formation, 24 intervention, 7 vital role in economic development, 174 1812 state system in England, 64 states, fragmented, negative aspects, 156 Statute of Artificers, England, 115 Statute of Labourers, England, 115 steam shipping, 36, 75 stock market, 1756 sugar trade, Europe and America, 113 Swedish-Polish war (1655-60), 72 Switzerland, geographical disadvantage success, despite geographical advances, 173 tariffs, 36 tax system, 12, 24, 174 early England, 63 technique appropriation, 17980 technological change, 155 Britain, 35 economic growth, 171 factor prices, 160 technological diffusion in Europe, 15 technological knowledge expansion in early Europe, 18 technology, cost of using, 159 technology improvements, 171 technology transfer, 41 technology use in developing world problem of, 159 tenant farmers in Britain wage labour 13001520, 24 textile industry Catalan, 53 Holland, 32 Thatcher, Margaret, policies, 8 Thirty Years War, 161848, 27 income and population decline, 70 trade Belgium, 578 east, through Italy, 19 east-west, through Europe, 71 England, 65 Far East to Balkans, 71 international, 25, 36, 45, 178 on Venetian ships, 97 trade unions, 8, 37 transaction costs, 4, 125 transport costs, 1257 of trade, 32, 41, 1256, 173 transport improvements England and Netherlands, 142 transport infrastructure, 6, 12 transport, medieval, 64 travel motives, 169 Treaty of Verdun, 843 technological diffusion, 15 tree ring growth in Europe 15001899, 12930 tulip mania 1637, 59

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Markets and Growth in Early Modern Europe War of the Spanish succession, 61 wars, effect on market integration, 135, 1434 Wars of Religion, France 156098, 66 wealth in Roman economy, 12 weights and measures, standardization of, 64 welfare of aged and infirm, 116 welfare ratios of building labourers, 15001799, 30 wheat consumption in Europe, 44 price data, 7881 wheat price gap, 47, 55, 803 wheat price speed of adjustment cities, 869 wheat price volatility data city-level, 835 wheat prices evidence, 1078 womens work as servants, 116 wool trade, England and continent bills of exchange, 119 woollen cloth industry Belgium, 56, 57 England, 57 world capital markets, 1746 world trade growth, 25, 45

unemployment, mass, 78 unemployment in 1970s and 1980s, 37 Union of Utrecht, 59 urban labour markets, 114 urbanization, 149, 152 and markets, 153 England, 33 rates in Europe, 15001850, 28 of Roman times, 12 Spain, 53 usury laws, for Christians, 119 Vasco da Gama, explorer, 25, 100, 113 vector error correction model (VECM), 48, 86, 110 Venetian manufacture, luxury items, 96 Venetian shipping, 979 Venice, spice trade, 25, 49, 923, 99100 Viking invasions, 13 virtuous circle, 171 Visigoths in Spain, 13 volatility calculation, 43, 478, 86, 1067 wages growth, 153 high, England, 34 skilled and unskilled workers, 11617

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