The modern concept of the wealth of nations emerged by the early twentieth century. Capital embodied in people—human capital—mattered. The United States led all nations in mass postelementary education during the “human-capital century.” The American system of education was shaped by New World endowments and Republican ideology and was characterized by virtues including publicly funded mass education that was open and forgiving, academic yet practical, secular, gender neutral, and funded and controlled by small districts. The American educational template was a remarkable success, but recent educational concerns and policy have redefined some of its “virtues” as “vices.”

The lending portfolio of a London banker is analyzed to better understand the relationship between public and private finance during England's Financial Revolution. The Glorious Revolution's political settlement appears to have reduced the risk premium on sovereign debt; but it seems to have raised, not lowered, rates on private debt. Two explanations for these higher private rates are suggested. During the war years 1690–1697, the government's improved capacity to borrow seems to have “crowded out” private borrowing. After peace was restored and the government's borrowing retrenched, the new political regime seems to have stimulated demand for loanable funds.

This article presents somewhat-more-direct evidence than has been available on the supply price of labor during the Depression. The new data comprise wages asked from situations-wanted ads for female clerical workers. Between 1929 and 1933 annual average clerical wages asked fell nominally by nearly 58 percent, markedly lower than wages of new or existing employees. Neither changes in labor quality nor self-selection explains the decline. Clerical wages asked fell by roughly the same percentage as did wages paid in agriculture. The data are strongly inconsistent with the market-clearing view of Depression-era labor markets.

We study a period of Javanese history when the consumption of opium was legal, but the supply of it was undergoing substantial institutional transformation. Through most of the nineteenth century the opium trade was organized into a system of “revenue farms,” which were privately owned local monopolies that bought raw opium from the government, refined it, and sold it to consumers. After 1893 this system was replaced by a government monopoly, the so-called opium regie, which controlled importation, refining, and retailing. Our main conclusion is that this change in policy substantially reduced opium consumption.

We investigate secular changes in the distribution of personal expenditure in Italy. To this end we present a new data set, consisting of 4,370 family-level budgets scattered over the years 1881–1961. Our methodology is innovative for this kind of study. Italy's secular trend proves to have been egalitarian, and to have accelerated in periods of fast output growth. Sectoral, residential, and demographic changes associated with “modern economic growth” account for a minor part of the observed changes in expenditure distribution, suggesting that other factors, such as wage differentials, play a dominant role in explaining the dynamics of inequality.

Based on data from probate inventories we construct and analyze an annual time series of slave prices for South Carolina from 1722 to 1809. Comparison of South Carolina slave prices with those in other parts of the Western Hemisphere and the relationship between slave prices and slave imports indicate that while the long-run supply of slaves was highly elastic, over periods of one to two decades the supply curve was upward sloping. Comparison of our slave price series with an index of agricultural export prices indicates that labor productivity growth in agriculture was modest over the eighteenth century.

Recent historical research tends to view the 1848 revolutions in Europe as caused by a surge of radical ideas and by long-term socioeconomic problems. However, many contemporary observers interpreted much of the upheaval as a consequence of short-term economic causes, specifically the serious shortfall in food supply that had shaken large parts of the Continent in 1845–1847, and the subsequent industrial slump. Applying standard quantitative methods to a data set of 27 European countries, we show that it was mainly immediate economic misery, and the fear thereof, that triggered the European revolutions of 1848.

Construction on the first commercial telegraph line in the United States began in 1845. Over the next 15 years, states promoted and regulated the industry through a variety of statutes. This article explores the patterns of telegraph legislation over time and across states. The patterns of telegraph legislation are shown to fit general regulatory patterns of economic activity during the nineteenth century.

It has often been argued that parliamentary enclosure decisively increased the wage dependence of English agricultural laborers, primarily by extinguishing their rights to keep cows on common land. Yet the extent to which laborers had in fact enjoyed common pasture rights has never been demonstrated. This article fills that gap, by documenting the extent of laborers' common rights for ten settlements in the south and east Midlands. It finds that most laborers in these villages did not have common rights prior to enclosure and cannot, therefore, have been proletarianized by their loss.

In order to examine the relation between exports and inequality, this article first estimates per-capita income, exports, and other indicators of economic development in Mato Grosso, Brazil. Manuscript data are analyzed to measure and interpret three kinds of inequality: of income, of total wealth, and of landholding. The results suggest that exports and foreign ownership contributed far less to inequality than is imagined in dependency theory.

This article examines the role of the agricultural crisis in the international transmission of the Great Depression and assesses the direct and indirect macroeconomic effects of the agricultural price decline. Using panel data for 16 countries, it is shown that the decline in agricultural prices adversely affected the general price level, consumption and investment. Furthermore, it is shown that the agricultural price decline was an important vehicle by which the Depression was transmitted internationally.

A large literature examines men's unemployment and their wives' labor-market participation. In response to her husband's unemployment, a woman may adjust her labor supplied to household production as well as to the market. This article tests for this effect and measures its impact using the U.S. Bureau of Labor Statistics Cost of Living survey of 1917–1919. Households altered both household-production decisions and the wife's labor supplied to the market in response to the husband's unemployment. But the household-production-response effect was smaller than the added-worker effect, in terms of women's labor hours and household consumption.

The relative price of capital goods, an important component of the user cost of capital, has rarely been incorporated into comparative studies of long-run capital accumulation. This article constructs and explores a data set for capital-goods and equipment prices covering the 1870–1950 period for 11 OECD countries. We document substantial differences across countries in the relative prices of capital goods, but also find convergence in those prices over time. Finally, we show that relative capital-goods prices are strongly negatively correlated with investment rates.

Mexico's initial industrialization was based on firms that were “grouped”: that is, linked to other firms through close affiliations with a common bank. Most explanations for the prevalence of groups are based on increasing returns or missing formal capital markets. We propose a simpler explanation that better fits the facts of Mexican history. In the absence of secure property rights, tangible collateral could not credibly be offered to creditors; but there remained the possibility of using reputation as a form of intangible collateral. In such circumstances, firms had incentives to group together for purposes of mutual monitoring and insurance.

This article analyzes the revolutionary impact the tractor had on rural America and examines the economic, technological, and institutional factors governing the machine's diffusion. Our simultaneous-equation regression model helps decipher the complex relationship between farm scale and diffusion. In addition, analyzing diffusion as a capital replacement problem reveals that the shift to the new technology was far more rapid than what has generally been thought and provides a new perspective on the long co-existence of both horses and tractors on farms.

Credit cooperatives were widespread in nineteenth-century Germany, which is surprising given that country's highly developed banking system. One general explanation for the success of credit cooperatives emphasizes their ability to capitalize on superior information and to impose inexpensive but effective sanctions on defaulters. These features supposedly permit cooperatives to lend to individuals whom banks would spurn, and to tailor loan terms more closely to borrowers' needs. I use the business records of several German credit cooperatives to test this claim. The results show that real efficiency advantages are at least part of the explanation for their success.

Economic historians have traced the origin of the uniform property tax in the United States to the insertion of uniformity clauses into state constitutions in the Northwest and to efforts to tax commercial wealth. This article shows that the tax was created by legislation in the Northeast and that the first constitutional clauses were adopted in the South to protect slaveholders. It is time for historians of the U.S. political economy to abandon the dated paradigms of the “progressive history” tradition.

The 1858 discovery of crude oil in Ontario led to the development of a refining industry initially composed of many small firms. Ontario's refiners relied upon generous tariff protection in order to compete with cheaper, higher-quality imports. We apply a regime-switching model to the pattern of monthly wholesale prices to find the extent to which trade policy affected collusive efforts. Tariff protection encouraged collusion, but ease of entry resulted in frequent price wars. An 1877 downward revision in tariffs, while reducing the gains to collusion, also reduced the likelihood of entry and supported efforts to rationalize capacity.

This article investigates the influence of health on the growth paths of ten industrialized countries over the course of 100 to 125 years. Changes in health increased their pace of growth by 30 to 40 percent, altering permanently the slope of their growth paths. This finding is robust across five measures of long-term health and it remains largely unchanged when “controlled” for investment in physical capital. Health-related variables correlate positively with years of schooling. However, schooling variables by themselves do not replicate the results obtained from health-related measures. Health improvements thus do not merely follow economic progress.

Rational-choice theories of the state have been used in attempts to explain how variations in policy result from differences in constraints. But these theories give little attention to how the state comes to know what the constraints are. This article provides a dramatic example of the process of discovering economic and political constraints by examining Iran's policies toward the opium trade during the reign of Reza Shah Pahlavi (1921–1941).