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Sons of Something: Taxes, Lawsuits and Local Political Control in Sixteenth Century Castile

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  • Mauricio Drelichman

    (University of British Columbia)

Abstract

The widespread ennoblement of the Spanish bourgeoisie in the sixteenth century has been traditionally considered one of the main causes of Iberian decline. I document and quantify the surge in ennoblement through a new time series of nobility cases preserved in the Archive of the Royal Chancery Court of Valladolid and use the insights provided by lawsuits from several localities to model the rent seeking mechanisms at work in a game theoretical framework. I then validate the game against the data and use it to draw inferences about the unobserved redistributive activity in local politics. Contrary to established scholarship, I find that: 1) the tax exemptions granted to nobles cannot alone explain the flight to privilege, since ennoblement was more costly than the present value of the future tax benefits; 2) the central motivation behind ennoblement was to gain control of local governments and acquire decision-making power over common resources; 3) while ennoblement reflected a high level of redistributive activity, there is no evidence in the archival record linking it to the stagnation and decline of Spain.

Suggested Citation

  • Mauricio Drelichman, 2005. "Sons of Something: Taxes, Lawsuits and Local Political Control in Sixteenth Century Castile," Economic History 0508004, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpeh:0508004
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    References listed on IDEAS

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    1. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
    2. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 2008. "Why Is Rent-Seeking So Costly to Growth?," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 213-218, Springer.
    3. Philip R. Lane & Aaron Tornell, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March.
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    Cited by:

    1. Drelichman, Mauricio, 2009. "License to till: The privileges of the Spanish Mesta as a case of second-best institutions," Explorations in Economic History, Elsevier, vol. 46(2), pages 220-240, April.
    2. Charotti, Carlos Javier & Palma, Nuno & dos Santos, Joao Pereira, 2022. "American treasure and the decline of Spain," CEPR Discussion Papers 17020, C.E.P.R. Discussion Papers.
    3. Arteaga, Fernando & Desierto, Desiree & Koyama, Mark, 2024. "Shipwrecked by rents," Journal of Development Economics, Elsevier, vol. 168(C).
    4. Nuno Palma, 2019. "American Precious Metals and their Consequences for Early Modern Europe," Working Papers 0174, European Historical Economics Society (EHES).
    5. Kedrosky, Davis & Palma, Nuno, 2021. "The Cross of Gold: Brazilian Treasure and the Decline of Portugal," CAGE Online Working Paper Series 574, Competitive Advantage in the Global Economy (CAGE).
    6. Elisa Borghi & Donato Masciandaro, 2023. "Political Elites, Urban Institutions And Long-Run Persistence : The King Owned Towns," BAFFI CAREFIN Working Papers 23193, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.

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    More about this item

    Keywords

    rent seeking; nobility; local government; litigation; redistribution; institutions; institutional analysis; empirical method; game theory; Castile; Spain;
    All these keywords.

    JEL classification:

    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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