The development of the standard of living in the Third Reich : a happiness economic perspective

.The goal of this paper is to provide an explanation for the remarkable difference in the contemporary Germans positive self-assessment of their living conditions and the development of the most important economic welfare indicators (like GDP or consumption per capita) during the Third Reich. To explain this discrepancy, findings of the new research field of happiness economics are applied to the peacetime of the Third Reich to analyze the development of the standard of living in this period. First, the theory of adaption and aspiration is used to explain the growing satisfaction of the Germans after the Great Depression. In the second step, based on current life satisfaction studies, the development of the most important economic determinants of happiness during the 1930s is examined

Does medieval trade still matter? Historical trade centers, agglomeration and contemporary economic development

This study empirically establishes a link between medieval trade, agglomeration and contemporary regional development in ten European countries. It documents a statistically and economically significant positive relationship between prominent involvement in medieval trade and commercial activities and regional economic development today. Further empirical analyses show that medieval trade positively influenced city development both during the medieval period and in the long run; they also reveal a robust connection between medieval city growth and contemporary regional agglomeration and industry concentration. A mediation analysis indicates that a long-lasting effect of medieval trade on contemporary regional development is indeed transmitted via its effect on agglomeration and industry concentration. This research thus highlights the long-run importance of medieval trade in shaping the development of cities as well as the contemporary spatial distribution of economic activity throughout Europe. The path-dependent regional development processes caused by medieval commercial activities help explain the observed persistent regional development differences across the European countries considered

Does medieval trade still mater? Historical trade centers, agglomeration and contemporary economic development

This study empirically establishes a link between medieval trade, agglomeration and contemporary regional development in ten European countries. It documents a statistically and economically significant positive relationship between prominent involvement in medieval trade and commercial activities and regional economic development today. Further empirical analyses show that medieval trade positively influenced city development both during the medieval period and in the long run; they also reveal a robust connection between medieval city growth and contemporary regional agglomeration and industry concentration. A mediation analysis indicates that a long-lasting effect of medieval trade on contemporary regional development is indeed transmitted via its effect on agglomeration and industry concentration. This research thus highlights the long-run importance of medieval trade in shaping the development of cities as well as the contemporary spatial distribution of economic activity throughout Europe. The path-dependent regional development processes caused by medieval commercial activities help explain the observed persistent regional development differences across the European countries considered

Identity, Instability, and Investors. An Empirical Investigation of the Home Bias

In this paper, we present novel data from the German-speaking area on 13,422 venture capital investments between 1999 and 2019, and document a novel and yet unexplained contributor to investors’ home bias. We propose a new measure of regional identity based on a recent vehicle license plate liberalization in Germany, and leverage on a unique dataset of historical borders to show how regional identity is formed. We use an instrumental strategy to establish a causal link between historical political instability, regional identity, and the home bias. Our results indicate that a common regional identity is highly relevant for investment decisions

Illuminating the World Cup effect : night lights evidence from South Africa

This paper evaluates the economic impact of the $14 billion preparatory investments for the 2010 FIFA World Cup in South Africa. We use satellite data on night light luminosity at municipality and electoral district level as a proxy for economic development, applying synthetic control methods for estimation. For the average World Cup municipality, we find significantly positive, short-run effects before the tournament, corresponding to a reduction of unemployment by 1.3 percentage points. At the electoral district level, we reveal distinct effect heterogeneity, where especially investments in transport infrastructure are shown to have long-lasting, positive effects, particularly in more rural areas

The long shadow of history : roman legacy and economic development - evidence from the German limes

This paper contributes to the understanding of the long-run consequences of Roman rule on economic development. In ancient times, the area of contemporary Germany was divided into a Roman and non-Roman part. The study uses this division to test whether the formerly Roman part of Germany show a higher nightlight luminosity than the non-Roman part. This is done by using the Limes wall as geographical discontinuity in a regression discontinuity design framework. The results indicate that economic developmentas measured by luminosityis indeed significantly and robustly larger in the formerly Roman parts of Germany. The study identifies the persistence of the Roman road network until the present as an important factor causing this development advantage of the formerly Roman part of Germany both by fostering city growth and by allowing for a denser road network

Participative political institutions and city development 800-1800

This study investigates the effect of participative political institutions (PPIs) that emerged in many central European cities from the late 13th century. The empirical analysis of the paper is based on newly compiled long-run data for the existence of different types of PPIs in 104 cities in the Holy Roman Empire. The effect of both an overall index of participativeness of political institutions as well as of the individual PPIs is tested empirically. When pooled over all periods and observations, there seems to be a significant positive overall effect of PPIs in the German-speaking area but not in the Low Countries. The study founds considerable spatial and temporal heterogeneity in the effect of PPIs. Furthermore, the effect of different types of PPIs differs substantially and in general seems to be short-lived. That is, the results show that the positive initial effect of some PPIs declined the longer they existed and over time

Why it matters what people think : beliefs, legal origins and the deep roots of trust

This paper analyses the connection between legal origins and generalized trust. Based on recent results of institutions and trust research it argues that legal origins and trust are connected via the beliefs of agents. Next, it develops hypotheses about a complex and self-reinforcing causal relation between both. It then shows empirically that indeed, legal origins and contemporary trust are robustly connected with each other. In a next step, it investigates the deep historical roots of trust to construct proxies for historical trust levels in 1500 AD. By making use of the historical trust scores and information about the exogenous or endogenous introduction of legal origins in certain countries it assess some of the claims about causality made before. Here, it found confirming evidence for the propositions of Aghion et al. (2010), namely that (i) countries for which legal origins are endogenous did develop other legal traditions depending on their ex-ante (historical) trust values and (ii) that the effects of an exogenous introduction of legal origins vary depending on ex-ante trust levels

Trade and political institutions in late medieval European cities : origins and long-run consequences

The first part of the thesis establishes a link between medieval trade, agglomeration and contemporary regional development in ten European countries. It documents a significant positive relationship between involvement in medieval trade and regional economic development today. The analysis indicates that a long-lasting effect of medieval trade on contemporary regional development is transmitted via its effect on agglomeration and industry concentration. Further empirical analyses show that medieval trade positively influenced city development both during the medieval period and in the long run; they also reveal a robust connection between medieval city growth and contemporary regional agglomeration and industry concentration. This research highlights the long-run importance of medieval trade in shaping the development of cities as well as the contemporary spatial distribution of economic activity throughout Europe. Next, a new city-level data set on political institutions in pre-modern Europe is introduced. It comprises of three variables reporting the prevalence of the different existing types of participative political institutions between 800 and 1800 AD in 104 cities in the Holy Roman Empire. According to historical studies, the three included measures (guild participation in the city council, participative election procedures and the existence of institutionalized burgher representation) represent the universe of political institutions in cities in this era. Based on this data, the next chapter of the thesis investigates the origins of guild revolts and participation in the government of late medieval central European cities. It finds that structural factors, i.e. the prosperity of proto-industry and exogenous events like the agricultural crisis were factors triggering the revolts. Medieval trade cities had a lower probability of guild participation indicating that not economic prosperity per se is decisive but rather that formerly poor groups of citizens like craftsmen profited from the economic upswing. The study also finds evidence for the existence of spatial spillovers implying that strategic considerations played a role in the spread of the revolts. Finally, I investigate the effect of the rise of participative political institutions in late medieval central European cities on city development. The results show, that the enlargement of political participation is not always conducive to city development. The participation of guilds in the city council, for example had an overall neutral or negative effect. Furthermore, the effect of guild participation is declining over time, implying that this form of PPI is prone to institutional degeneration and increased rent-seeking. Election of city government by the citizens, in contrast, shows a stable and robustly positive effect on city development. Hence, the decisive point for more political participation being conducive for economic development is that the increase in participation is accompanied by increased accountability of the politicians and a politics that is oriented toward public welfare than the special interests of particular groups.Der erste Teil der Arbeit zeigt, dass mittelalterlicher Handel durch seinen positiven Einfluss auf Agglomeration und Industriekonzentrationsmuster in 10 Mitteleuropäischen Ländern einen persistenten Einfluss auf die regionale wirtschaftliche Entwicklung hatte. Dies bedeutet, dass mittelalterliche Handelsstädte auch heute noch reicher und größer sind als nicht-Handelsstädte. Kapitel 3 führt einen neuen Datensatz zu den politischen Institutionen in 104 Städten des Heiligen Römischen Reiches (HRR) ein. Kapitel 4 beleuchtet empirisch, basierend auf der historischen Debatte, die Ursachen der spätmittelalterlichen Zunftaufstände in den Städten des HRR. Es zeigt sich, dass vor allem in den Zentren der Proto-Industrie solche Revolten auftraten, allerdings spielte auch die spätmittelalterliche Agrarkrise und die Pest eine Rolle. Letztere Ereignisse führten zu einer Landflucht, welche zu Konflikten innerhalb der Städte führte. Kapitel 5 beschäftigt sich mit den Auswirkungen der unterschiedlichen politischen Institutionen in den Städten auf das langfristige Stadtwachstum. Es stellt sich heraus, dass Städte mit partizipativeren Institutionen sich nicht per se besser entwickelt haben. Die Beteiligung der Zünfte am Stadtregiment hatte beispielsweise nur sehr kurzfristig einen positiven Effekt, langrfristig war der Effekt der Zunftbeteiligung insignifikant oder sogar negativ, was einen Rückschluss auf etwaige Prozesse institutioneller Sklerose erlaubt. Die Einführung von Wahlen des Stadtrats bzw. des Bürgermeisters durch Teile der Bürgerschaft allerdings, hatte sehr wohl langfristige positive Effekte. Dies zeigt, dass es vor allem checks-and-balances und nicht so sehr die Ausweitung der politischen Partizipation per se gewesen ist, welche entscheidend war

The deep imprint of Roman sandals : evidence of long-lasting effectsof Roman rule on personality, economic performance, and well-beingin Germany

We investigate whether the Roman presence in the southern part of Germany nearly 2,000 years ago had a deep imprinting effect with long run consequences on a broad spectrum of measures ranging from present-day personality profiles to a number of socioeconomic outcomes and why. Todays populations living in the former Roman part of Germany score indeed higher on certain personality traits, have higher life and health satisfaction, longer life expectancy, generate more inventions and behave in a more entrepreneurial way. These findings help explain that regions under Roman rule have higher present-day levels of economic development in terms of GDP per capita. The effects hold when controlling for other potential historical influences. When addressing potential channels of a long term effect of Roman rule the data indicates that the Roman road network plays an important role as a mechanism in the imprinting that is still perceptible today