#Econhist papers I (mostly) admire, Feb 2024

On Conservative Talk Radio, rice farmers and their math skills, hunter-gatherers and inequality, shipwrecks and much more...

Dive into the forefront of economic history research with my monthly ‘#Econhist papers I (mostly) admire’ series, where I handpick and review ten standout papers I enjoyed. As a paid member, you’ll unlock exclusive access to the full, curated list every month.

1. Shipwrecked by rents

By Fernando Arteaga, Desiree Desierto and Mark Koyama

Research question: The authors examine the economic and social consequences of the monopolistic practices in the Manila Galleon trade, particularly focusing on how these practices led to the overloading of ships and delayed departures, thereby increasing the likelihood of shipwrecks. It introduces a new dataset to analyze these events and constructs a model to show the relationship between monopoly rents, corruption, and inefficient cargo loading.

Main findings: Ships departing late with overloaded cargoes had a significantly higher probability of encountering shipwrecks. The study demonstrates the long-term inefficiencies and dangers introduced by rent-seeking behaviour within monopolistic trading systems, offering insights into the broader economic and social costs of such practices.

My takeaway: This is a great example of how the past is often analogous to the present. Industries such as pharmaceuticals, energy and telecommunications often deal with high costs, regulatory controls, and the potential for efficiency losses due to monopolistic behaviour. Perhaps regulators in these industries can learn a thing or two from the sixteenth, seventeenth and eighteenth-century trade routes between Manila and Mexico.