Debt, deficits, and crowding out: England, 1727 1840
AbstractBy the 1820s, as a result of the protracted struggle with France, the market value of the British Government debt was twice British GDP. It has been argued that this debt represented a huge institutional failure by the government, significantly slowing growth in the Industrial Revolution period by crowding out private investment. This article constructs measures of private rates of return in the years 1725 1839 and shows these imply that neither the government deficits nor the mounting debt are associated with much higher private rates of return on capital. The reason the government could issue so much debt without raising rates of return is unclear. One possibility is that crowding out was occurring, but population growth in 1770 1839 was reducing rental income as a fraction of GDP, creating a demand for other asset income so that we do not observe tightness in capital markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cambridge University Press in its journal European Review of Economic History.
Volume (Year): 5 (2001)
Issue (Month): 03 (December)
Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page: http://journals.cambridge.org/jid_EREProvider-Email:firstname.lastname@example.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Peter Temin & Joachim Voth, 2004.
"Credit rationing and crowding out during the Industrial Revolution: Evidence from Hoare's Bank, 1702-1862,"
Economics Working Papers
859, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2005.
- Temin, Peter & Voth, Hans-Joachim, 2005. "Credit rationing and crowding out during the industrial revolution: evidence from Hoare's Bank, 1702-1862," Explorations in Economic History, Elsevier, vol. 42(3), pages 325-348, July.
- Temin, Peter & Voth, Hans-Joachim, 2004. "Credit Rationing and Crowding-Out During the Industrial Revolution: Evidence from Hoare's Bank, 1702-1862," CEPR Discussion Papers 4453, C.E.P.R. Discussion Papers.
- Peter Temin & Hans-Joachim Voth, 2004. "Credit Rationing and Crowding out during the Industrial Revolution: Evidence from Hoare's Bank, 1702-1862," Working Papers 211, Barcelona Graduate School of Economics.
- Michael Bar & Oksana Leukhina, 2009.
"Supplemental Notes to "Demographic transition and industrial revolution: A macroeconomic investigation","
08-85, Review of Economic Dynamics.
- Michael Bar & Oksana Leukhina, 2010. "Demographic Transition and Industrial Revolution: A Macroeconomic Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(2), pages 424-451, April.
- Mikael Priks, 2005. "Optimal Rent Extraction in Pre-Industrial England and France – Default Risk and Monitoring Costs," CESifo Working Paper Series 1464, CESifo Group Munich.
- Voth, Joachim, 2005. "Credit Rationing and Crowding Out During the Industrial Revolution," Department of Economics, Working Paper Series qt4qw3v8q6, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- David R Stead, . "Fixed Rent Contracts in English Agriculture, 1750-1850: A Conjecture," Discussion Papers 05/01, Department of Economics, University of York.
- Guillaume Daudin, 2004. "Profitability of slave and long distance trading in context : the case of eightheenth century France," Sciences Po publications info:hdl:2441/687, Sciences Po.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.