Governments frequently establish institutions to govern the transition in property rights when they acquire territory or experience radical changes in political regimes. By examining a specific example—the United States' acquisition of California from Mexico in 1848, this article investigates general questions about these institutions and institutional choice. The article fmds that the specific institution that Congress chose for California best balanced the interests of the federal government, American owners of land grants, and American squatters and settlers. Further, despite the lobbying, litigation, and delay associated with the institution, the institution was more efficient than prior institutions.

The paper traces the development of Keynes's views of free trade and protection and their relationship to British economic policy from 1922 to 1946.

“Is there anything that a tariff could do which an earthquake could not do better?”

This article examines the workers' standard of living in the cotton textile industry of Northwest England from 1806 to 1850. Hedonic earnings regressions using 1835 data suggest that power-loom weavers required substantial compensation for the high rents and poor sanitation of urban locations. Adjusting earnings in the factory sector for the impact of urbanization cuts growth in living standards by 10 percent, or up to one-quarter of gains realized by 1850. Inclusion of those employed in the handloom sector implies that any improvements in the living standards of all workers in the industry appeared only during the 1840s.

Despite the widespread acceptance of Friedman and Schwartz's interpretation of the 1936/37 increase in member bank reserve requirements as the major cause of the 1937/38 recession there is surprisingly little straightforward evidence on this issue, perhaps because data limitations and structural instability preclude econometric modeling. We exploit a simple alternative, comparing member banks with nonmember banks not subject to changes in reserve requirements. The results support the hypothesis that the increase in reserve requirements reduced the availability of bank credit and contributed to the recession.

It is widely accepted by students of the slave trade that slave mortality during the Middle Passage fell between the seventeenth and early nineteenth centuries. The first person to make the claim of declining mortality was Philip Curtin, who reopened research on slave mortality in his book The Atlantic Slave Trade: A Census. Curtin examined a number of sources, and his conclusion was that “… there is a decreasing rate of loss over the eighteenth and nineteenth centuries.” Curtin's book stimulated a great deal of further research, much of it by Herbert Klein. Klein's conclusion was the same as Curtin's: “it is undoubtedly true that over the whole of the 18th century, mortality in the Middle Passage was on the decline.” This result has since been repeated in a number of places. Riley has recently summed up the consensus view on the subject: “Most students of this question report that mortality declined over time, but the available data are sporadic in time and place.” The only dissenting view has come from Postma who found “no discernible trend toward decrease or increase in the overall pattern” in the Dutch trade.

An analysis of grain prices from Zhili (Hebei) province in North China for the period from 1738 to 1911 demonstrates that while the province's local grain markets gradually fragmented, the provincial market as a whole simultaneously grew more closely integrated with external markets, first with Fengtian (Manchuria) and later with the Lower Yangzi region. The Qing state's food policies, the deterioration of transport routes, and the condition of rural markets provide a context for understanding these seemingly paradoxical trends.

Self-selection of converts is an under-studied explanation of inter-religion socioeconomic status (SES) differences. Inspired by this conjecture, I trace the Coptic-Muslim SES gap in Egypt to self-selection-on-SES during Egypt’s conversion from Coptic Christianity to Islam. Selection was driven by a poll tax on non-Muslims, imposed from 641 until 1856, which induced poorer Copts to convert to Islam leading Copts to shrink into a better-off minority. Using novel data sources, I document that high-tax districts in 641–1100 had in 1848–1868 relatively fewer Copts, but greater SES differentials. Group restrictions on apprenticeships and schooling led the initial selection to perpetuate.

In an attempt to divide and marginalize the black population, the apartheid regime forcefully relocated some 3.5 million South Africans to rural homelands between 1960 and 1980. This event, considered one of history’s largest social engineering exercises, created overcrowded and economically deprived communities of displaced people. This article uses geo-coded data to explore the long-term effects of removals on current measures of social capital. Comparing people within the same homeland, I show that those living close to former resettlement camps have higher levels of trust towards members of their social network, people in general, and members of other ethnic groups. These findings are important, as solidarity among suppressed people is believed to be a critical factor in explaining the demise of the apartheid regime.

Relying mainly on the manuscript records of the Royal African Company, we explore the factors that contributed to the large gap between slave prices in Africa and the Caribbean. Twenty-two voyages from the mid-1680s are analyzed. These were conducted with hired ships and the payments to the shipowners and captains were recorded. In addition to transport costs, mortality and morbidity had a big effect on slave prices; while the earnings from the trade in gold and ivory had a moderating influence. The effect of mortality and transport costs on slave prices during the eighteenth century is also explored.

This article investigates Victorian investor financial portfolio strategies in England and Wales during the second half of the nineteenth century. We find that investors held on average about half of their gross wealth in the form of four or five liquid financial securities, but were reluctant to adopt fully contemporary financial advice to invest equal amounts in securities or to spread risk across the globe. They generally held under-diversified portfolios and proximity to their investments may have been an alternative to diversification as a means of risk reduction, especially for the less wealthy.

This note investigates the sources of variation in the growth of per capita personal incomes across U.S. states during the Great Depression. States entering the economic contraction with relatively low per capita incomes tended to suffer larger percentage declines in per capita income than did high income states. By contrast, low-income states tended to experience larger percentage gains during the recovery. Hence, state per capita incomes diverged during the contraction phase and converged during the recovery phase.

Colonial economies suffered from a scarcity of specie that traditionally has been attributed to a chronic external drain. An analysis of the Canadian currency in the early nineteenth century suggests that the explanation for the specie scarcity lies in the multi-coin monetary standard imposed by the currency laws. Gresham's Law accurately predicts the coins that circulated in Canada, and it is concluded that the colonists suffered from a lack of quality rather than quantity of specie.

Unlike the case of many low-income countries, farm-level survey data show no major differences across farm sizes with regard to decision-making and economic efficiency. This similarity is attributed to the operation of efficient and competitive markets which households used effectively to offset imbalances in resource endowment. If this holds true from the 1880s to the 1930s, perhaps the benefits of commercialization were more evenly distributed than previously believed.

With passage of the Federal Reserve Act in 1913, the institutional structure necessary to support an American market for bankers' acceptances was created. This article examines the development of the secondary market for bankers' acceptances during its first 20 years. It provides evidence that discount market liquidity increased dramatically during the 1920s and helped the dollar acceptance challenge the sterling bill as an important source of trade finance around the world. The Federal Reserve Banks played a key role by reducing the risk borne by private dealers and propelling the market to a high-liquidity equilibrium.The author thanks Mike Haupert, William Roberds, and Ellis Tallman for their useful comments and suggestions, and Susan Isaac for her excellent editorial assistance. All errors are the responsibility of the author.

Throughout the period 1871–1938, the average British worker was better off than the average German worker, but there were significant differences between major sectors. For the aggregate economy, the real wage gap was about the same as the labor productivity gap, but again there were important sectoral differences. Compared to their productivity, German industrial workers were poorly paid, whereas German agricultural and service sector employees were overpaid. This affected the competitiveness of the two countries in these sectors. There were also important differences in comparative real wages by skill level, affecting the extent of poverty.

The boll weevil spread across the South from 1892 to 1922 with devastating effect on cotton cultivation. The resulting shift away from this child labor–intensive crop lowered the opportunity cost of school attendance. We investigate the insect’s long-run effect on educational attainment using a sample of adults from the 1940 census linked back to their childhood census records. Both white and black children who were young (ages 4 to 9) when the weevil arrived saw increased educational attainment by 0.24 to 0.36 years. Our results demonstrate the potential for conflict between child labor in agriculture and educational attainment.

In 1805–1882, Egypt embarked on one of the earliest state industrialization programs. Using a new data source, the Egyptian nineteenth-century population censuses, I examine the impact of the program on the long-standing inter-religious human capital differentials, which were in favor of Christians. I find that there were inter-religious differentials in reaping the benefits (or losses) of industrialization. The first state industrialization wave was “de-skilling” among Muslims but “up-skilling” among Christians, while the second wave was “up-skilling” for both groups. I interpret the results within Lawrence F. Katz and Robert A. Margo (2013) framework of technical change.

Historians disagree about whether geographic mobility on the frontier reflected economic hardship or opportunity because of the inability to observe the outcomes of non-persisters. This article uses a new sample of frontier families linked between the 1860, 1870, and 1880 U.S. censuses to study mobility and wealth accumulation. Using the incidence of Confederate guerilla warfare in frontier counties to generate exogenous migration, I find the effect of persistence on wealth accumulation is insignificant. Also, young, blue-collar, and landless families—those with the highest net benefits of migration—were the most likely to move. These findings reflect widespread economic opportunity on the frontier.

I examine how production of a child labor–intensive crop (cotton) affected schooling in the early twentieth-century American South. Because cotton production may be endogenous, presence of an agricultural pest (the boll weevil) is employed as an instrument. Using newly collected county-level data for Georgia, I find a 10 percent reduction in cotton caused a 2 percent increase in black enrollment rate, but had little effect on white enrollment. The shift away from cotton following the boll weevil's arrival explains 30 percent of the narrowing of the racial differential in enrollment rates between 1914 and 1929.