Economic History

North begins his book by stating that "institutions are the rules of the game in a society or, more formally, are the humanly devised constraints that shape human interaction."(3) That being said North then proposes to examine institutions, changes in them, and their impact on economic performance over time.

This article examines five common misunderstandings about case-study research: (a) theoretical knowledge is more valuable than practical knowledge; (b) one cannot generalize from a single case, therefore, the single-case study cannot contribute to scientific development; (c) the case study is most useful for generating hypotheses, whereas other methods are more suitable for hypotheses testing and theory building; (d) the case study contains a bias toward verification; and (e) it is often difficult to summarize specific case studies. This article explains and corrects these misunderstandings one by one and concludes with the Kuhnian insight that a scientific discipline without a large number of thoroughly executed case studies is a discipline without systematic production of exemplars, and a discipline without exemplars is an ineffective one. Social science may be strengthened by the execution of a greater number of good case studies.

La Ligue des communistes, association ouvrière internationale qui, dans les circonstances d'alors, ne pouvait être évidemment que secrète, chargea les soussignés, délégués au congrès tenu à Londres en novembre 1847, de rédiger un programme détaillé, à la fois théorique et pratique, du Parti et destiné à la publicité. Telle est l'origine de ce Manifeste dont le manuscrit, quelques semaines avant la révolution de Février 1 , fut envoyé à Londres pour y être imprimé. Publié d'abord en allemand, il a eu dans cette langue au moins douze éditions différentes en Allemagne, en Angleterre et en Amérique. Traduit en anglais par Miss Hélène Macfarlane, il parut en 1850, à Londres, dans le Red Republican, et, en 1871, il eut, en Amérique, au moins trois traductions anglaises. Il parut une première fois en français à Paris, peu de temps avant l'insurrection de juin 1848 2 , et, récemment, dans Le Socialiste de New York. Une traduction nouvelle est en préparation. On en fit une édition en polonais à Londres, peu de temps après la première édition allemande. Il a paru en russe à Genève, après 1860. Il a été également traduit en danois peu après sa publication.

This article presents results from the first statistically significant study of cost escalation in transportation infrastructure projects. Based on a sample of 258 transportation infrastructure projects worth US$90 billion and representing different project types, geographical regions, and historical periods, it is found with overwhelming statistical significance that the cost estimates used to decide whether such projects should be built are highly and systematically misleading. Underestimation cannot be explained by error and is best explained by strategic misrepresentation, that is, lying. The policy implications are clear: legislators, administrators, investors, media representatives, and members of the public who value honest numbers should not trust cost estimates and cost-benefit analyses produced by project promoters and their analysts.

This chapter describes the process of transport growth and development in eighteenth-and nineteenthcentury Britain, including its political, organisational and developmental impact. Transport systems (including communications) move people, goods and information. The large size and capital-intensive nature of transport operations caused unprecedented organisational challenges for companies. The identification of transport as a form of social overhead capital, supporting production across the economy, helps account for its broad-ranging impact on economic development. In this role transport contributed to the efficient allocation of resources over space, thereby promoting competition between producers, and providing information about alternative consumption possibilities to consumers.

This essay builds on foundations laid by Edward Harris in his essay 'Workshop, Marketplace and Household' (2002). In that essay, Harris set out the evidence for some 170 occupational terms and discussed the division of labour in the Athenian economy. This essay adds subsequent findings, bringing the list of occupational terms to 276. It then asks how many of these terms denote activities that could have provided individuals with an entire livelihood; I thus exclude part-time tasks and tasks that represent part of the chaîne opératoire involved in the production of this or that commodity, but a part that could not in itself have provided a complete livelihood to its practitioner. The chapter is under embargo by CUP, so pop me an email if you would like a copy.

Back cover text: If the new fin de siècle marks a recurrence of the real, Bent Flyvbjerg’s Rationality and Power epitomizes that development and sets new standards for social and political inquiry. The Danish town of Aalborg is to Flyvbjerg what Florence was to Machiavelli: a laboratory for understanding the real workings of power, and for grasping what they mean to our more general concerns of social and political organization. Politics, administration, and planning are examined in ways that allow  a rare, in-depth understanding. The reader witnesses, firsthand, the classic and endless drama which defines what modernity and democracy are and can be.

The neo-classical approach to the question of why growth rates differ between countries, typified by the meticulous studies of Denison (1967; 1976) and Maddison (1970; 1972), concentrates on the supply side of the economy using the concept of the production function. Having specified the functional form, the growth of output is apportioned between the growth of capital, the growth of labour, and the growth of total factor productivity obtained as a residual. By this approach, growth rate differences are " explained " in terms of differences in the growth of factor supplies and productivity. While the approach is fruitful, interesting and mathematically precise, it does not tell us why the growth of factor supplies and, productivity differs between countries. To answer this question some would say that a more Keynesian approach is required which stresses demand. For the Keynesian, it is demand that " drives " the economic system to which supply, within limits, adapts: taking this approach, growth rates differ because the growth of demand differs between countries. The question then becomes why does demand grow at different rates between countries? One explanation may be the inability of economic agents, particularly governments, to expand demand. This explanation by itself, however, is not very satisfactory. The more probable explanation lies in constraints on demand. In an open economy, the dominant constraint is the balance of payments. In this paper it is shown how closely the growth experience of several developed countries approximates to the rate of growth of exports divided by the income elasticity of demand for imports, which, on certain assumptions, can be regarded as a measure of what I call the balance of payments equilibrium growth rate. In fact, the rate of growth of exports divided by the income * Paper originally published in vol. 32 n. 128 (1979), pp. 45-53, of BNL Quarterly Review. Current author contacts are reported in the first article of the present issue.

The Seventeen Contradictions is an x-ray of tensions, trends and tendencies in capital and capitalism that empowers us to look forward. Taking the still ongoing 2008 economic crisis as a starting point, Harvey investigates how the capitalist economy that produces such crises is embedded in contradictions. Seventeen of these are discussed throughout the book.

This article presents results from the first statistically significant study of traffic forecasts in transportation infrastructure projects. The sample used is the largest of its kind, covering 210 projects in 14 nations worth U.S.$59 billion. The study shows with very high statistical significance that forecasters generally do a poor job of estimating the demand for transportation infrastructure projects. For 9 out of 10 rail projects, passenger forecasts are overestimated; the average overestimation is 106%. For half of all road projects, the difference between actual and forecasted traffic is more than ±20%. The result is substantial financial risks, which are typically ignored or downplayed by planners and decision makers to the detriment of social and economic welfare. Our data also show that forecasts have not become more accurate over the 30-year period studied, despite claims to the contrary by forecasters. The causes of inaccuracy in forecasts are different for rail and road projects, with political causes playing a larger role for rail than for road. The cure is transparency, accountability, and new forecasting methods. The challenge is to change the governance structures for forecasting and project development. Our article shows how planners may help achieve this.

Recent research highlights that countries differ with respect to their experience with capital flows and do not systematically gain from capital account liberalization. This paper is related to the empirical literature that investigates the particular conditions under which international financial integration (IFI) is growth-enhancing. Relying on non-linear panel techniques, we find that countries that are able to reap the benefits of IFI satisfy certain threshold conditions regarding the level of economic, institutional and financial development, and the inflation rate. Our results also reveal a differentiated behaviour of foreign direct investment and portfolio liabilities compared to debt liabilities.

After almost three centuries of investigations into the question of what it means to be human and the historical processes of becoming human, archaeologists have amassed a huge volume of data on prehistoric human interactions. One of the largest data sets available is on the global distribution and exchange of materials and commodities. What still remains insufficiently understood is the precise nature of these interactions and their role in shaping the diverse cultures that make up the human family as we know it. A plethora of theoretical models combined with a multitude of methodological approaches exist to explain one important aspect of human interaction—trade—and its role and place in shaping humanity. We argue that trade parallels political, religious, and social processes as one of the most significant factors to have affected our evolution. Here we review published literature on archaeological approaches to trade, including the primitivist-modernist and substantivist-formalist-Marxist debates. We also discuss economic, historical, and ethnographic research that directly addresses the role of traders and trade in both past and contemporary societies. In keeping with the complexities of interaction between trade and other aspects of human behavior, we suggest moving away from the either/or perspective or strong identification with any particular paradigm and suggest a return to the middle through a combinational approach to the study of trade in past societies.

How and why does distant political and economic history shape the functioning of current institutions? This paper argues that individual values and convictions about the scope of application of norms of good conduct provide the "missing link." Evidence from a variety of sources points to two main findings. First, individual values consistent with generalized (as opposed to limited) morality are widespread in societies that were ruled by non-despotic political institutions in the distant past. Second, well-functioning institutions are often observed in countries or regions where individual values are consistent with generalized morality, and under different identifying assumptions this suggests a causal effect from values to institutional outcomes. The paper ends with a discussion of the implications for future research.

Modern economics tantalizes historians, promising them a set of simple verbal and mathematical formulas to explain and even retrospectively predict historical actions and choices. Colin P. Elliott challenges economic historians to rethink the way they use economic theory. Building upon the approaches of Max Weber, R. G. Collingwood, Ludwig von Mises and others, Elliott reconceptualizes economic theories such as the quantity theory of money and Gresham’s law as heuristic constructs – constructs which help historians identify and understand the unique modes of thought and embedding contexts which characterized economic action in the Roman Empire. The book offers novel analyses of key events in Roman monetary history, from Augustus’ triumph over Mark Antony and Cleopatra, to third-century AD coinage debasements. Roman history has long been a battleground for polarizing methodological debates, but this book’s accessible style and conciliatory tone invites historians, economists, sociologists and other scholars to use economic theory for understanding.

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This series was created in 2003 to promote, debate, and disseminate information and analysis and convey the excitement and complexity of the most topical issues in economic and social development in Latin America and the Caribbean. It is sponsored by the Inter-American Development Bank, the United Nations Economic Commission for Latin America and the Caribbean, and the World Bank. The manuscripts chosen for publication represent the highest quality in each institution's research and activity output and have been selected for their relevance to the academic community, policy makers, researchers, and interested readers.

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The paper develops data on the history of wages and prices in China from the eighteenth century to the twentieth. These data are used to compare Beijing, Canton, Suzhou and Shanghai to leading cities in Europe, India, and Japan in terms of nominal wages, the cost of living, and the standard of living. In the eighteenth century, the real income of building workers in Asia was similar to that of workers in the backward parts of Europe and far behind that of workers in the leading economies in northwestern Europe. Industrialization led to rising real wages in Europe and Japan. Real wages declined in China in the eighteenth and early nineteenth centuries and rose slowly in the late nineteenth and early twentieth. There was little cumulative change in the standard of living of workers in Beijing, Canton, and lower Yangzi cities for two hundred years. The income disparities of the early twentieth century were due to long run stagnation in China combined with economic development in Japan and Europe.