CGEH Working Paper Series Soldiers and booze: The rise and decline of a Roman market economy in north-western Europe Eltjo Buringh, Utrecht University Jan Luiten van Zanden, Utrecht University Maarten Bosker, Erasmus University Rotterdam, Tinbergen Institute, CEPR June 2012 Working paper no. 32 http://www.cgeh.nl/working-paper-series/ © 2012 by Authors. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. 1 Soldiers and booze: The rise and decline of a Roman market economy in north-western Europe Eltjo Buringh, Utrecht University Jan Luiten van Zanden, Utrecht University Maarten Bosker, Erasmus University Rotterdam, Tinbergen Institute, CEPR Abstract This study quantifies the importance of the Roman military for the development of a market economy in north-western Europe. Distributions of low denomination coins show how the Roman arrival kick-started a local market economy. Additionally settlement densities of fluvial catchments are used as a proxy for economic development. Our newly constructed dataset of settlement sizes shows a high correlation with Roman military requirements. After the demise of the empire the local market economy faded away. This antique market economy had a different geographical distribution than its medieval successor, which was not mainly driven by military demand. Dum vixi bibi libenter bibite vos qui vivitis , engraved on a tombstone of a Roman veteran . Keywords: market economy, historical development, Roman Empire, north-western Europe, inland waterway transport, coin finds JEL codes: O18, N33, N63 Corresponding author: Eltjo Buringh,
[email protected] Acknowledgements: We would like to thank Jaco Zuijderduijn, Jan Pelsdonk and Paul Beliën from the Geldmuseum in Utrecht for their comments on this text and helping us with NUMIS.