Testable implications of economic revolutions: An application to historic data on European wages
AbstractMotivated by an on-going debate in economic history we develop a simple method to quantify the impact of economic revolutions upon a novel historical data set listing the wages of building craftsmen and labourers in Southeast Europe. Structural breaks are found in the data and signify the effects of economic revolutions. With a small number of localised exceptions economic revolutions, caused by technological and administrative progress, lead to a decrease in the long-term level of wage volatility and overall results suggest close analogies between biological and economic evolution. The Commercial Revolution (mid 16th-early 18th centuries) acts as an important pre-requisite for the later Industrial Revolution (mid 18th-19th centuries). The Price Revolution (15th-16th centuries) results in some short-term increases in wage volatility.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32812.
Date of creation: 15 Aug 2011
Date of revision:
Historical Economics; Economic Revolutions; Economic Evolution; European Wages;
Find related papers by JEL classification:
- N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods
- N00 - Economic History - - General - - - General
- G00 - Financial Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-22 (All new papers)
- NEP-HIS-2011-08-22 (Business, Economic & Financial History)
- NEP-HME-2011-08-22 (Heterodox Microeconomics)
- NEP-LAB-2011-08-22 (Labour Economics)
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