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The Institutions of Roman Markets

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  • Benito Arruñada

Abstract

The chapter analyzes the basis of the market economy in classical Rome, from the perspective of personal vs impersonal exchange and focusing on the role of the state in providing market-enabling institutions. It starts by reviewing the central conflict in all exchanges between those holding and those acquiring property rights, and how solving it requires reducing information asymmetry without endangering the security of property. Relying on a model of the social choice of institutions, the chapter identifies the demand and supply factors driving the institutional choices made by the Romans, and examines the economic circumstances that influenced these factors in the classical period of Roman law. Comparing the predictions of the model with the main solutions used by Roman law in the areas of property, business exchange, and the enforcement of personal obligations allows the chapter to propose alternative interpretations for some salient institutions that have been subject to controversy in the literature, and to conclude with an overall positive assessment of the market-enabling role of the Roman state.

Suggested Citation

  • Benito Arruñada, 2015. "The Institutions of Roman Markets," Working Papers 813, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:813
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    References listed on IDEAS

    as
    1. Ulrike Malmendier, 2009. "Law and Finance "at the Origin"," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 1076-1108, December.
    2. Benito ArruÒada, 2003. "Property Enforcement as Organized Consent," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(2), pages 401-444, October.
    3. Arrunada, Benito & Garicano, Luis & Vazquez, Luis, 2001. "Contractual Allocation of Decision Rights and Incentives: The Case of Automobile Distribution," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 17(1), pages 257-284, April.
    4. Scheidel,Walter & Morris,Ian & Saller,Richard P. (ed.), 2007. "The Cambridge Economic History of the Greco-Roman World," Cambridge Books, Cambridge University Press, number 9780521780537.
    5. Benito Arruñada, 2010. "Institutional Support of the Firm: A Theory of Business Registries," Working Papers 508, Barcelona School of Economics.
    6. Peter Temin, 2006. "The Economy of the Early Roman Empire," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 133-151, Winter.
    7. Laiou,Angeliki E. & Morrisson,Cécile, 2007. "The Byzantine Economy," Cambridge Books, Cambridge University Press, number 9780521615020.
    8. Laiou,Angeliki E. & Morrisson,Cécile, 2007. "The Byzantine Economy," Cambridge Books, Cambridge University Press, number 9780521849784.
    9. Kevin Greene, 2000. "Technological innovation and economic progress in the ancient world: M. I. Finley re-considered," Economic History Review, Economic History Society, vol. 53(1), pages 29-59, February.
    10. Koyama, Mark, 2010. "Evading the 'Taint of Usury': The usury prohibition as a barrier to entry," Explorations in Economic History, Elsevier, vol. 47(4), pages 420-442, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Property rights; enforcement; transaction costs; registries; Roman law; impersonal exchange; personal exchange; New Institutional Economics; Law and Economics;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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