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Amartya Sen revisited : trade, inequality and growth in central Spain, 1700-1800

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  • Santiago-Caballero, Carlos

Abstract

This paper studies the effects of trade and inequality in central Spain during the eighteenth century, taking as case study the province of Guadalajara and the surrounding regions. The first part of the paper presents a specific factors model as theoretical framework that will later be applied to the empirical data. The second part introduces an analysis of income inequality in the province during the eighteenth century and concludes that inequality decreased, especially during the last third of the century. Finally the paper addresses this unexpected result and concludes that it was consequence of the success of the land reform carried out by the central government in the late 1760s. The reform was a success in Guadalajara thanks to the characteristics of its population and the lack of bargaining power of pressure groups. Following Sen’s ideas, the reduction in inequality meant that markets could work properly and that a majority and not only a few could take full advantage of the benefits of trade.

Suggested Citation

  • Santiago-Caballero, Carlos, 2010. "Amartya Sen revisited : trade, inequality and growth in central Spain, 1700-1800," IFCS - Working Papers in Economic History.WH wp10-04, Universidad Carlos III de Madrid. Instituto Figuerola.
  • Handle: RePEc:cte:whrepe:wp10-04
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F1 - International Economics - - Trade
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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