IDEAS home Printed from https://ideas.repec.org/a/cup/reveco/v43y2025i3p413-434_4.html

Gambling with ocean hazards: interest rates and sea loans in colonial connections (Portugal, 1600–1800)

Author

Listed:
  • Costa, Leonor Freire
  • Albuquerque, Tomas Pinto

Abstract

This study examines sea loans in the Portuguese Empire (1600–1800). Structured as contingent contracts, this kind of credit served as a risk-sharing agreement for financing transoceanic trade routes. Using notarial protocols and court records, the study examines how maritime regulations, international political relations, and information problems influenced the pricing of loan agreements. The study demonstrates that the introduction of the convoy system, which distinguished Portugal–Brazilian connections, coincided with a downward trend in sea loan rates, which converged with those of safer short-term lending instruments. In contrast, periods of war and free navigation increased uncertainty, making maritime insurance and sea loans complementary instruments for risk management.

Suggested Citation

  • Costa, Leonor Freire & Albuquerque, Tomas Pinto, 2025. "Gambling with ocean hazards: interest rates and sea loans in colonial connections (Portugal, 1600–1800)," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 43(3), pages 413-434, December.
    • Handle: RePEc:cup:reveco:v:43:y:2025:i:3:p:413-434_4
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0212610925100797/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    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:cup:reveco:v:43:y:2025:i:3:p:413-434_4. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/rhe .

    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.