IDEAS home Printed from https://ideas.repec.org/p/ecl/corcae/04-06.html
   My bibliography  Save this paper

REgional

Author

Listed:
  • Barseghyan, Levon
  • Molinari, Francesca
  • Velde, Francois

Abstract

Shortly after the Revolution of 1789 France experienced a period of major hyper- inflation, which lasted until 1796, when the French government abolished the paper money and returned to the specie. In 1798 the French government ordered the local authorities in all departments to construct the aggregate price index. Even though similar in trend, these price series display striking di¤erences both in level and short run dynamics. Some of these differences are undoubtedly caused by the absence of a uniform rule for constructing the price indices, and possibly are magnified by such distortionary factors as the laws of maximum, the heavy concentration of military con- tracts in particular locations, and the different taxation schemes. However, level of economic integration in 18th century France had a major impact on the price evo- lution during the Revolution. In this paper, using different proxies for a measure of economic distance, we show that price formation among "close" departments displayed significantly higher correlation than the one among "distant" departments.

Suggested Citation

  • Barseghyan, Levon & Molinari, Francesca & Velde, Francois, 2004. "REgional," Working Papers 04-06, Cornell University, Center for Analytic Economics.
    • Handle: RePEc:ecl:corcae:04-06
    as

    Download full text from publisher

    File URL: https://cae.economics.cornell.edu/04-06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. White, Eugene Nelson, 1989. "Was There a Solution to the Ancien Régime's Financial Dilemma?," The Journal of Economic History, Cambridge University Press, vol. 49(3), pages 545-568, September.
    2. Sargent, Thomas J & Velde, Francois R, 1995. "Macroeconomic Features of the French Revolution," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 474-518, June.
    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. James Conklin, 1998. "The Theory of Sovereign Debt and Spain under Philip II," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 483-513, June.
    2. Leonor Freire Costa & Susana Münch Miranda, 2023. "Reputational recovery under political instability: Public debt in Portugal, 1641–83," Economic History Review, Economic History Society, vol. 76(3), pages 871-891, August.
    3. Vesperoni , Alberto, 2013. "War Finance and the Modern State," NEPS Working Papers 6/2013, Network of European Peace Scientists.
    4. Mark Dincecco, 2010. "The Political Economy Of Fiscal Prudence In Historical Perspective," Economics and Politics, Wiley Blackwell, vol. 22(1), pages 1-36, March.
    5. Eugene N. White, 2004. "From privatized to government‐administered tax collection: tax farming in eighteenth‐century France," Economic History Review, Economic History Society, vol. 57(4), pages 636-663, November.
    6. Edward J. Green & Richard M. Todd, 2001. "Thoughts on the Fed's role in the payment system," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 25(Win), pages 12-27.
    7. Carmen M. Reinhart & Kenneth S. Rogoff, 2011. "The Forgotten History of Domestic Debt," Economic Journal, Royal Economic Society, vol. 121(552), pages 319-350, May.
    8. repec:hal:spmain:info:hdl:2441/6154 is not listed on IDEAS
    9. Patrick K. O’Brien & Nuno Palma, 2019. "Danger To The Old Lady Of Threadneedle Street? The Bank Restriction Act And The Regime Shift To Paper Money, 1797-18211," Working Papers 0082, Utrecht University, Centre for Global Economic History.
    10. Kim Oosterlinck & Loredana Ureche-Rangau & Jacques-Marie Vaslin, 2014. "Baring, Wellington and the resurrection of French public finances following Waterloo," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 74(4), pages 1072-1102, November.
    11. Campbell Leith & Eric Leeper, 2016. "Understanding Inflation as a Joint Monetary-Fiscal Phenomenon," Working Papers 2016_01, Business School - Economics, University of Glasgow.
    12. repec:hal:wpspec:info:hdl:2441/6154 is not listed on IDEAS
    13. Patrick K O'Brien & Nuno Palma, 2020. "Danger to the Old Lady of Threadneedle Street? The Bank Restriction Act and the regime shift to paper money, 1797–1821," European Review of Economic History, Oxford University Press, vol. 24(2), pages 390-426.
    14. Hassan Ayoub & Jérôme Creel & Étienne Farvaque, 2008. "Détermination du niveau des prix et finances publiques : le cas du Liban, 1965 – 2005," Revue d’économie du développement, De Boeck Université, vol. 16(3), pages 115-141.
    15. Donato Masciandaro & Davide Romelli & Stefano Ugolini, 2023. "Fiscal Dominance, Monetary Policy and Exchange Rates: Lessons from Early-Modern Venice," BAFFI CAREFIN Working Papers 23205, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    16. Kim Oosterlinck & Loredana Ureche-Rangau & Jacques-Marie Vaslin, 2013. "Waterloo: a Godsend for French Public Finances?," Working Papers 0041, European Historical Economics Society (EHES).
    17. Stefania Albanesi, "undated". "The Time Consistency of Optimal Monetary Policy with Heterogeneous Agents," Working Papers 207, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    18. P. Antipa & C. Chamley, 2017. "Monetary and Fiscal Policy in England during the French Wars (1793-1821)," Working papers 627, Banque de France.
    19. Newby, Elisa, 2012. "The suspension of the gold standard as sustainable monetary policy," Journal of Economic Dynamics and Control, Elsevier, vol. 36(10), pages 1498-1519.
    20. Chien, YiLi & Wen, Yi, 2022. "The determination of public debt under both aggregate and idiosyncratic uncertainty," Journal of Economic Theory, Elsevier, vol. 203(C).
    21. Chun, Rodney M., 2000. "Compensation vouchers and equity markets: Evidence from Hungary," Journal of Banking & Finance, Elsevier, vol. 24(7), pages 1155-1178, July.
    22. Sascha Füllbrunn, 2009. "A comparison of Candle Auctions and Hard Close Auctions with Common Values," FEMM Working Papers 09019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.

    More about this item

    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:ecl:corcae:04-06. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cacorus.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.