Trade and information shocks, and market development: Evidence from early modern Europe

50 Pages Posted: 24 Jul 2017 Last revised: 30 Aug 2021

See all articles by Prateek Raj

Prateek Raj

Indian Institute of Management (IIMB), Bangalore; University of Chicago - George J. Stigler Center for the Study of the Economy and the State; University College London - School of Management

Date Written: August 30, 2021

Abstract

In this paper, I theorize that trade and information shocks were necessary for developing modern impersonal markets. I develop a dataset on the decline of merchant guilds in Europe and find that merchant guilds declined in the sixteenth century in cities on the Atlantic coast that adopted printing early. These cities were exposed to simultaneous trade and information shocks of Atlantic trade and the Gutenberg printing press in the late fifteenth century, making market opportunities outside of guilds lucrative, triggering market development. These cities also had greater printing of “bourgeois” content in the late sixteenth century.

Keywords: Europe, Printing, Information Technology, Atlantic Trade, Guilds, Markets

JEL Classification: N13, N23, N43, N73, N93, Z13

Suggested Citation

Raj, Prateek, Trade and information shocks, and market development: Evidence from early modern Europe (August 30, 2021). Available at SSRN: https://ssrn.com/abstract=2994833 or http://dx.doi.org/10.2139/ssrn.2994833

Prateek Raj (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India
+918026993123 (Phone)

HOME PAGE: http://www.iimb.ac.in/profile/77

University of Chicago - George J. Stigler Center for the Study of the Economy and the State ( email )

Walker Hall
Chicago, IL 60637
United States

University College London - School of Management ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
251
Abstract Views
1,623
rank
156,242
PlumX Metrics