A methodological approach to estimating the money demand in pre-industrial economies: probate inventories and Spain in the 18th century
The study of monetary phenomena and the understanding of price determination in Modern Europe are too often limited by the scarcity of good-quality data sets on the evolution across time of variables like money holdings, income, or wealth. In this paper we show that the information contained in probate inventories can be extremely useful to circumvent that problem. In particular, combining a data set of 114 inventories from Palencia (North of Spain) between 1750 and 1770 with census information (Catastro de Ensenada) we make a cross-section estimation of a money demand which is the first one ever produced for any period before the 19th century. The results provide meaningful insights about the relation between money demand and wealth, urbanization and structural change in a pre-industrial economy and highlight the potential of probate inventories to improve our knowledge of the monetary history of Modern Europe.
|Date of creation:||Mar 2006|
|Contact details of provider:|| Web page: http://portal.uc3m.es/portal/page/portal/instituto_figuerola|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lewis, Mervyn K. & Mizen, Paul D., 2000. "Monetary Economics," OUP Catalogue, Oxford University Press, number 9780198290629.
- Allan H. Meltzer, 1963. "The Demand for Money: The Evidence from the Time Series," Journal of Political Economy, University of Chicago Press, vol. 71, pages 219-219.
- Officer, Lawrence H., 2005. "The quantity theory in New England, 1703-1749: new data to analyze an old question," Explorations in Economic History, Elsevier, vol. 42(1), pages 101-121, January.
- Sargent, Thomas J & Velde, Francois R, 1999.
"The Big Problem of Small Change,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 31(2), pages 137-161, May.
- Thomas J. Sargent & Francois R. Velde, 1997. "The big problem of small change," Working Paper Series, Macroeconomic Issues WP-97-08, Federal Reserve Bank of Chicago.
- Goldfeld, Stephen M. & Sichel, Daniel E., 1990. "The demand for money," Handbook of Monetary Economics,in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 1, chapter 8, pages 299-356 Elsevier.
- Fisher, Douglas, 1989. "The Price Revolution: A Monetary Interpretation," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 883-902, December.
- Papademos, Lucas & Modigliani, Franco, 1990. "The supply of money and the control of nominal income," Handbook of Monetary Economics,in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 1, chapter 10, pages 399-399 Elsevier.
- Flynn, Dennis O., 1978. "A new perspective on the spanish price revolution: The monetary approach to the balance of payments," Explorations in Economic History, Elsevier, vol. 15(4), pages 388-406, October.
- Casey B. Mulligan & Xavier Sala-I-Martin, 1992. "U.S. Money Demand: Surprising Cross-Sectional Estimates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(2), pages 285-343.
- Sala-i-Martin, X. & Mulligan, C.B., 1992. "U.S. Money Demand: Surprising Cross-Sectional Estimates," Papers 671, Yale - Economic Growth Center.
- Palencia, Fernando Carlos Ramos, 2001. "Pautas de consumo familiar en la Castilla preindustrial: Palencia, 1750–1850," Revista de Historia Económica, Cambridge University Press, vol. 19(S1), pages 37-59, March.
- Bomberger, William A, 1993. "Income, Wealth, and Household Demand for Deposits," American Economic Review, American Economic Association, vol. 83(4), pages 1034-1044, September.
- Allen, Robert C., 1988. "Inferring Yields from Probate Inventories," The Journal of Economic History, Cambridge University Press, vol. 48(01), pages 117-125, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cte:whrepe:wh061902. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Poveda)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.