Anarchy, Property Rights, and Violence: The Case of Post Gold Rush California Karen Clay Heinz School of Public Policy and Management Carnegie Mellon University Pittsburgh, PA 15213
[email protected] This Version: June 22, 2005 . This paper uses new data from the squatter wars of the 1850s and 1860s in California, a period in which property rights were extremely uncertain, to investigate two issues related to property rights: i) the links among anarchy, production, and violence and ii) why contracts, which were available and enforceable in California, were so rarely used to mitigate the negative effects of uncertain property rights. The results have implications for understanding the historical development of agriculture in the United States, since squatting on agricultural land was prevalent throughout the United States, and for understanding agriculture in the Third World, since uncertain property rights in agricultural land are still an issue today. I would like to thank Avner Greif, Roxanne Nilan, Alan Olmstead, and Lee Alston for helpful discussions at many stages of this project; Lou Cain, Lance Davis, Stan Engerman, Shawn Kantor, Peter Lindert, Ken Sokoloff, participants at the Conference on Land, Labor, and Tenure and the 1996 Economic History Association meetings, and seminar participants at UCLA, Caltech, Northwestern, University of Illinois, and Stanford University for helpful comments; Lauren Clay and Jeff Brown for excellent research assistance; and Tom Weiss and especially Michael Haines for sharing data. I owe a special debt of gratitude to Jack Hirshleifer for pushing me to complete the project. Financial support from the Huntington Library and the Social Sciences and Humanities Research Council of Canada is gratefully acknowledged.