Transplanting Craft Guilds to Colonial Latin America: A Large Language Model Analysis

What can we learn about institutional transplantation by analyzing craft guilds in colonial Latin America? We use large language models (LLMs) to investigate colonial guild ordinances, addressing two major bottlenecks in assessing institutions: digitizing qualitative sources efficiently and analyzing them quantitatively. Our newly designed methodology reveals both long-term continuities and striking differences between craft guilds in colonial Mexico and Peru, particularly with regard to human capital and product quality. The LLM-based approach identifies patterns that were previously not discernible using standard methods in economic history, its results are reproducible, and it can easily be extended to other historical settings.