How Merchant Towns Shaped Parliaments: from the Norman Conquest of England to the Great Reform Act
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How Merchant Towns Shaped Parliaments: From the Norman Conquest of England to the Great Reform Act Charles Angelucci, Simone Meraglia, Nico Voigtländer (Columbia) (Exeter) (UCLA and NBER) March 3, 2020 Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 1 / 46 Towns’ (and thus merchants’) foothold on power crucial during later critical junctures – e.g., major trade expansions (AJR 2005; Pascali 2017) ) How did merchant towns gain direct representation in parliaments? ) How did they interact with parliaments over subsequent centuries? Motivation Political institutions are important drivers of economic development (North and Thomas 1973; North, Wallis and Weingast 2009; Acemoglu and Robinson 2012) Historically, institutions were shaped by “coalition of power holders” I Medieval period: king, nobility, high clergy I Early modern period: towns ascended to coalition of power holders – and gained representation in parliaments across Western Europe Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 2 / 46 ) How did merchant towns gain direct representation in parliaments? ) How did they interact with parliaments over subsequent centuries? Motivation Political institutions are important drivers of economic development (North and Thomas 1973; North, Wallis and Weingast 2009; Acemoglu and Robinson 2012) Historically, institutions were shaped by “coalition of power holders” I Medieval period: king, nobility, high clergy I Early modern period: towns ascended to coalition of power holders – and gained representation in parliaments across Western Europe Towns’ (and thus merchants’) foothold on power crucial during later critical junctures – e.g., major trade expansions (AJR 2005; Pascali 2017) Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 2 / 46 ) How did they interact with parliaments over subsequent centuries? Motivation Political institutions are important drivers of economic development (North and Thomas 1973; North, Wallis and Weingast 2009; Acemoglu and Robinson 2012) Historically, institutions were shaped by “coalition of power holders” I Medieval period: king, nobility, high clergy I Early modern period: towns ascended to coalition of power holders – and gained representation in parliaments across Western Europe Towns’ (and thus merchants’) foothold on power crucial during later critical junctures – e.g., major trade expansions (AJR 2005; Pascali 2017) ) How did merchant towns gain direct representation in parliaments? Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 2 / 46 Motivation Political institutions are important drivers of economic development (North and Thomas 1973; North, Wallis and Weingast 2009; Acemoglu and Robinson 2012) Historically, institutions were shaped by “coalition of power holders” I Medieval period: king, nobility, high clergy I Early modern period: towns ascended to coalition of power holders – and gained representation in parliaments across Western Europe Towns’ (and thus merchants’) foothold on power crucial during later critical junctures – e.g., major trade expansions (AJR 2005; Pascali 2017) ) How did merchant towns gain direct representation in parliaments? ) How did they interact with parliaments over subsequent centuries? Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 2 / 46 2 Self-governing towns ) direct representation in parliament (13-14th century) 3 Self-governing towns ) resisted patronage and strengthened parliament This Paper: Overview 1 How towns obtained self-governance during the Commercial Revolution (11-13th century) Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 3 / 46 3 Self-governing towns ) resisted patronage and strengthened parliament This Paper: Overview 1 How towns obtained self-governance during the Commercial Revolution (11-13th century) 2 Self-governing towns ) direct representation in parliament (13-14th century) Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 3 / 46 This Paper: Overview 1 How towns obtained self-governance during the Commercial Revolution (11-13th century) 2 Self-governing towns ) direct representation in parliament (13-14th century) 3 Self-governing towns ) resisted patronage and strengthened parliament Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 3 / 46 This Paper: England Study England – “the mother of parliaments” Starting point: England in medieval times, before parliament I Norman Conquest in 1066 ) ‘strong’ monarchy, imposes homogeneous formal (de jure) institutions I “Commercial Revolution” starting in 12C I First (‘Model’) Parliament in 1295 Create novel dataset for 554 towns (boroughs) 1066-1832 Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 4 / 46 ) Farm Grants (“Charters of Liberties”): Mutually beneficial contracts between monarch and merchant towns I Self-administered tax collection I Election of local officials (legal and fiscal) Diagram I Often granted during wars Step 1 of the Argument: (Period: 1086-1348) local self- merchant ) towns governance j j inefficient administration (judicial and fiscal) Royal officials (sheriffs) run towns’ administrations: “Tax Farming” But trade required specialized administration ) distortions Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 5 / 46 Step 1 of the Argument: (Period: 1086-1348) local self- merchant ) towns governance j j inefficient administration (judicial and fiscal) Royal officials (sheriffs) run towns’ administrations: “Tax Farming” But trade required specialized administration ) distortions ) Farm Grants (“Charters of Liberties”): Mutually beneficial contracts between monarch and merchant towns I Self-administered tax collection I Election of local officials (legal and fiscal) Diagram I Often granted during wars Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 5 / 46 2. Local institutions: Persistent effects until 1830s I Medieval Farm Grants ) history of electing local officials ) resist royal attempts to introduce patronage 3. Nationwide institutions: Strengthening Parliament I Farm Grants ) support parliamentarians during Civil War in 1640s I Farm Grants ) support for Great Reform Act of 1832 Step 2 of the Argument: local self- merchant ) ) institutional towns governance outcomes 1. Parliament: direct representation of towns (1295-1348) I Farm Grants: Fiscal and judicial autonomy (separated from shire administration) ) monarch summons Farm Grant boroughs to Parliament as separate constituencies to coordinate extra-ordinary taxation Diagram Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 6 / 46 3. Nationwide institutions: Strengthening Parliament I Farm Grants ) support parliamentarians during Civil War in 1640s I Farm Grants ) support for Great Reform Act of 1832 Step 2 of the Argument: local self- merchant ) ) institutional towns governance outcomes 1. Parliament: direct representation of towns (1295-1348) I Farm Grants: Fiscal and judicial autonomy (separated from shire administration) ) monarch summons Farm Grant boroughs to Parliament as separate constituencies to coordinate extra-ordinary taxation Diagram 2. Local institutions: Persistent effects until 1830s I Medieval Farm Grants ) history of electing local officials ) resist royal attempts to introduce patronage Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 6 / 46 Step 2 of the Argument: local self- merchant ) ) institutional towns governance outcomes 1. Parliament: direct representation of towns (1295-1348) I Farm Grants: Fiscal and judicial autonomy (separated from shire administration) ) monarch summons Farm Grant boroughs to Parliament as separate constituencies to coordinate extra-ordinary taxation Diagram 2. Local institutions: Persistent effects until 1830s I Medieval Farm Grants ) history of electing local officials ) resist royal attempts to introduce patronage 3. Nationwide institutions: Strengthening Parliament I Farm Grants ) support parliamentarians during Civil War in 1640s I Farm Grants ) support for Great Reform Act of 1832 Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 6 / 46 Data Collection Cover all 554 English boroughs (towns) that existed by 1348 I Timing and extent of Charters of Liberties (Farm Grants) Royal Rolls I Timing of Parliamentary enfranchisement (1295-1832) I Geography, ownership, commercial importance of boroughs We also collect data on: I Incorporation of boroughs I Boroughs’ franchise types and openness of local elections I Volunteer troops during the Civil War in 1642 I MPs’ voting behavior during Great Reform Act of 1832 (Aidt and Franck 2015). Detail Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 7 / 46 Checking validity of the exclusion restriction: For historical reasons, boroughs owned by lords almost never got Farm Grants Using subsample of lords’ boroughs: trade institutional ¨)H¨H geography outcomes Empirical Implementation trade ) Farm ) institutional geography Grants outcomes Angelucci, Meraglia, Voigtländer How Merchant Towns Shaped Parliaments Mar 3, 2020 8 / 46 Empirical Implementation trade ) Farm ) institutional geography Grants outcomes Checking validity of the exclusion restriction: For historical reasons, boroughs owned by lords almost never got Farm Grants Using subsample