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Political Competition and Economic Divergence: European Development Before and After the Black

Author

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  • Dittmar, Jeremiah
  • Bosshart, Luis

Abstract

We document how the Black Death activated political competition and led to economic divergence within Europe. Before the pandemic, economic development was similar in Eastern and Western German cities despite greater political fragmentation in the West. The pandemic led to a divergence that reflected regional differences in politics. After the pandemic, construction and manufacturing fell by 1/3 in the East relative to underlying trends and the Western path. Politics institutionalizing local self-government advanced in the West, but not in the East. This divergence is observed across otherwise similar cities along historic borders and foreshadows a subsequent divergence in agriculture.

Suggested Citation

  • Dittmar, Jeremiah & Bosshart, Luis, 2021. "Political Competition and Economic Divergence: European Development Before and After the Black," CEPR Discussion Papers 16447, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16447
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    More about this item

    Keywords

    Institutions; Political economy; Cities; Growth;
    All these keywords.

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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