Commercial revolutions, search and development
Working paper de l'OFCE
Paris : OFCE
Working paper de l'OFCE : 2016-08
Privileges, Resistence to trade, Speculative Strategies
A society can reap more benefits from an improvement in communication and transportation when the gap between privileged and less-privileged individuals is narrow. This hypothesis is investigated in a Kiyotaki-Wright search environment where people enjoy different rental positions. Historical evidence concerning the rise of Italian seaport cities during the Middle Ages, of the Netherlands in the 17th century, and the nobility ís resistance to trade in pre-revolutionary France is used to support the hypothesis.