IDEAS home Printed from https://ideas.repec.org/a/fle/journl/v56y2022i1p191-218.html
   My bibliography  Save this article

Northern Is Better? A Quantitative Transaction Costs Analysis of the Northern Invasion Phenomenon, Genoa 1590-1616

Author

Listed:
  • Antonio Iodice

    (University of Exeter
    Università di Genova)

  • Luigi Oddo

    (Università di Genova)

Abstract

This paper quantitatively analyses the role of transaction costs in Northern vessels' operating expenses versus their Mediterranean competitors between 1590 and 1616. It is based on an understudied risk-sharing institution, General Average (GA), and on data extrapolated from the AveTransRisk database and unpublished archival sources. We apply a Structural Vector Autoregression Model (SVAR) analysis by considering the Northern Invasion phenomenon as a series of structural shocks on Mediterranean seaborne trade. The SVAR model will test how the greater reliability of Northern vessels, constantly highlighted by the literature on the Northern Invasion, impacted on the repartition of damages following a GA, considered as a proxy of transaction costs. Results support the interpretation according to whom the transaction costs played a relevant role in the persistency of the Northern Invasion in the Mediterranean Sea.

Suggested Citation

  • Antonio Iodice & Luigi Oddo, 2022. "Northern Is Better? A Quantitative Transaction Costs Analysis of the Northern Invasion Phenomenon, Genoa 1590-1616," Annals of the Fondazione Luigi Einaudi. An Interdisciplinary Journal of Economics, History and Political Science, Fondazione Luigi Einaudi, Torino (Italy), vol. 56(1), pages 191-218, June.
    • Handle: RePEc:fle:journl:v:56:y:2022:i:1:p:191-218
    DOI: 10.26331/1177
    as

    Download full text from publisher

    File URL: https://www.annalsfondazioneluigieinaudi.it/images/LVI/2022-1-012-Iodice-Oddo.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26331/1177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Uhlig, Harald, 2005. "What are the effects of monetary policy on output? Results from an agnostic identification procedure," Journal of Monetary Economics, Elsevier, vol. 52(2), pages 381-419, March.
    2. North,Douglass C., 1991. "Institutions, Institutional Change and Economic Performance," Cambridge Books, Cambridge University Press, number 9780521394161.
    3. Arias, Jonas E. & Caldara, Dario & Rubio-Ramírez, Juan F., 2019. "The systematic component of monetary policy in SVARs: An agnostic identification procedure," Journal of Monetary Economics, Elsevier, vol. 101(C), pages 1-13.
    4. Fenoaltea, Stefano, 1976. "Risk, transaction costs, and the organization of medieval agriculture," Explorations in Economic History, Elsevier, vol. 13(2), pages 129-151, April.
    5. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    6. Stefano Fenoaltea, 1988. "Transaction Costs, Whig History, and the Common Fields," Politics & Society, , vol. 16(2-3), pages 171-240, June.
    7. Nicolini, Esteban A., 2007. "Was Malthus right? A VAR analysis of economic and demographic interactions in pre-industrial England," European Review of Economic History, Cambridge University Press, vol. 11(1), pages 99-121, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robin Braun & Ralf Brüggemann, 2017. "Identification of SVAR Models by Combining Sign Restrictions With External Instruments," Working Paper Series of the Department of Economics, University of Konstanz 2017-07, Department of Economics, University of Konstanz.
    2. Raffaella Giacomini & Toru Kitagawa & Matthew Read, 2021. "Identification and Inference Under Narrative Restrictions," Papers 2102.06456, arXiv.org.
    3. Herwartz, Helmut & Wang, Shu, 2023. "Point estimation in sign-restricted SVARs based on independence criteria with an application to rational bubbles," Journal of Economic Dynamics and Control, Elsevier, vol. 151(C).
    4. Dario Caldara & Edward Herbst, 2019. "Monetary Policy, Real Activity, and Credit Spreads: Evidence from Bayesian Proxy SVARs," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(1), pages 157-192, January.
    5. Rüth, Sebastian K., 2020. "Shifts in monetary policy and exchange rate dynamics: Is Dornbusch's overshooting hypothesis intact, after all?," Journal of International Economics, Elsevier, vol. 126(C).
    6. Ramey, V.A., 2016. "Macroeconomic Shocks and Their Propagation," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 71-162, Elsevier.
    7. Herwartz, Helmut & Rohloff, Hannes & Wang, Shu, 2022. "Proxy SVAR identification of monetary policy shocks - Monte Carlo evidence and insights for the US," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    8. Victor Pontines, 2021. "The real effects of loan-to-value limits: empirical evidence from Korea," Empirical Economics, Springer, vol. 61(3), pages 1311-1350, September.
    9. Philippe Andrade & Filippo Ferroni & Leonardo Melosi, 2023. "Identification Using Higher-Order Moments Restrictions," Working Paper Series WP 2023-28, Federal Reserve Bank of Chicago.
    10. Marco Capasso & Alessio Moneta, 2016. "Macroeconomic responses to an independent monetary policy shock: a (more) agnostic identification procedure," LEM Papers Series 2016/36, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Cheng, Kai & Yang, Yang, 2020. "Revisiting the effects of monetary policy shocks: Evidence from SVAR with narrative sign restrictions," Economics Letters, Elsevier, vol. 196(C).
    12. Cieslak, Anna & Pang, Hao, 2020. "Common shocks in stocks and bonds," CEPR Discussion Papers 14708, C.E.P.R. Discussion Papers.
    13. Giacomini, Raffaella & Kitagawa, Toru & Read, Matthew, 2022. "Robust Bayesian inference in proxy SVARs," Journal of Econometrics, Elsevier, vol. 228(1), pages 107-126.
    14. Uhrin, Gábor B. & Herwartz, Helmut, 2016. "Monetary policy shocks, set-identifying restrictions, and asset prices: A benchmarking approach for analyzing set-identified models," University of Göttingen Working Papers in Economics 295, University of Goettingen, Department of Economics.
    15. Angelini, Giovanni & Sorge, Marco M., 2021. "Under the same (Chole)sky: DNK models, timing restrictions and recursive identification of monetary policy shocks," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    16. Michael B. Devereux & Charles Engel & Giovanni Lombardo, 2020. "Implementable Rules for International Monetary Policy Coordination," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(1), pages 108-162, March.
    17. Francesco Fusari, 2023. "Identifying Monetary Policy Shocks Through External Variable Constraints," School of Economics Discussion Papers 0123, School of Economics, University of Surrey.
    18. Stefan Schiman & Harald Badinger, 2020. "Measuring Monetary Policy with Residual Sign Restrictions at Known Shock Dates," WIFO Working Papers 608, WIFO.
    19. Pooyan Amir‐Ahmadi & Thorsten Drautzburg, 2021. "Identification and inference with ranking restrictions," Quantitative Economics, Econometric Society, vol. 12(1), pages 1-39, January.
    20. Alessio Volpicella, 2019. "SVARs Identification through Bounds on the Forecast Error Variance," Working Papers 890, Queen Mary University of London, School of Economics and Finance.

    More about this item

    Keywords

    Northern Invasion; Transaction Costs; General Average; Shipping; SVAR;
    All these keywords.

    JEL classification:

    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fle:journl:v:56:y:2022:i:1:p:191-218. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mario Aldo Cedrini (email available below). General contact details of provider: https://edirc.repec.org/data/fleinit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.