Economic Innovations in Early Modern Europe

A theory stating that population growth outpaces resource growth, leading to poverty and misery. This theory is based on the concept that population growth is checked by factors such as famine, disease, and war.

Factors that increase the death rate, limiting population growth. Examples include famines, epidemics, and wars.

Factors that decrease the birth rate, restricting population growth. Examples include birth control, cultural norms about marriage age, and restrictions on extramarital births.

In the Malthusian model, pre-industrial societies can increase per capita income by limiting births.

In the Malthusian model, anything deadly (like war, famine, or disease) increases per capita income in pre-industrial societies.

The Malthusian model suggests that technological advancements in pre-industrial societies do not lead to higher per capita income.

A model describing how pre-industrial economies functioned, emphasizing the impact of population growth and limited resources.

Recent research supports the Malthusian theory, confirming that pre-industrial societies were limited by factors like population growth and resource availability.

Output can grow without technological improvements by specializing in production and trading goods and services.

The idea that increased production leads to workers becoming more skilled and efficient, boosting output further.

The fluctuations of output in pre-modern economies due to the interplay of division of labor and learning-by-doing.

The idea that pre-industrial societies experienced significant fluctuations in income above subsistence levels, driven by factors like population growth and resource availability.

The period in ancient Mediterranean history where economic activity grew due to specialization, trade, and increased population.

Around 100 CE, income levels in the Italian peninsula were significantly above subsistence, similar to later periods of economic boom.

The period when the Roman Empire faced a decline in population, trade, and economic activity, leading to a weakening of its power.

The period following the fall of the Roman Empire, characterized by de-urbanization, reduced trade, and lower income levels.

The Black Death killed a significant portion of Europe's population, leading to a decline in labor supply, which resulted in higher wages and increased demand for food, ultimately causing urbanization.

Cities in Europe were prone to disease outbreaks due to poor infrastructure like overcrowding and limited sanitation, leading to higher urban mortality rates.

Europe's political fragmentation during the early modern period led to frequent wars, contributing to higher mortality rates.

The European Marriage Pattern (EMP) involved late marriages and a significant proportion of people not marrying at all, resulting in lower birth rates than would be biologically possible.

After the Black Death, higher wages encouraged participation in the labor market, especially for young people who often delayed marriage to dedicate their time to work as servants or apprentices.

Urbanization drives tax revenues, which are often channeled towards military expenditure, leading to a cycle of urbanization, taxation, and warfare.

The Black Death's impact on mortality was more persistent in Europe due to its urban infrastructure and political fragmentation, compared to other regions like Asia.

The European Marriage Pattern (EMP) and its associated low birth rates are considered a contributing factor to the Little Divergence, a period of relative economic growth in Europe compared to other regions.

The period between the 15th and 18th centuries, marked by significant growth in international trade, new financial instruments, and increased commercial activity.

The economic impact of European colonization of the Americas, Africa, and Asia, which entailed a complex network of trade in manufactured goods, slaves, and raw materials, fueling growth in Europe but perpetuating exploitation.

The use of financial instruments like the Bill of Exchange, which facilitated trade and investment by reducing transaction costs, allowing for more efficient resource allocation.

Marriage arrangements in Northwest Europe were not dictated by parents, allowing individuals to choose partners based on personal preferences and labor market opportunities.

In Northwest Europe, individuals had access to a relatively free labor market, meaning they could choose their occupations and negotiate wages, unlike in other regions where labor was more restricted.

Inheritance practices in Northwest Europe focused on inheritance upon a parent's death, not upon marriage, making it less appealing to marry early.

In China and India, arranged marriages at a young age were common, limiting women's autonomy and labor market participation.

In Eastern Europe, landlords strengthened serfdom to address labor shortages caused by the Black Death, restricting individuals' freedom and opportunities.

In Southern Europe, dowries increased with the age of the woman, encouraging early marriages to secure larger inheritances. This created a strong incentive to marry young.

The Black Death's impact on Northwest Europe was more persistent due to the region's unique institutional and cultural context, which facilitated individual agency and economic opportunities.

The Black Death's impact on Northwest Europe, coupled with the region's economic and social systems, led to a sustained decrease in fertility rates and a higher standard of living compared to other regions.

The theory that Western powers exploited developing countries by extracting resources and wealth, hindering their development. This exploitation supposedly contributed to a small percentage of Western European GDP for centuries.

The idea that until the 18th century, England primarily exported goods to the Mediterranean region, influencing its economy. This emphasizes the role of trade in shaping economic development.

The concept that the Atlantic slave trade, particularly in the context of American imports, was relatively minor in terms of economic impact. Cliometricians argue that its scale was too small to significantly influence the global economy.

An economic phenomenon observed in Spain and Portugal where the influx of American precious metals led to inflation and a decline in the competitiveness of their tradables sector.

The idea that reliance on abundant natural resources, like American precious metals, can weaken governments' responsiveness to their citizens' needs, hindering economic growth. It suggests that dependence on such resources can lead to a lack of incentives for institutional development.

The widening gap in institutional development between Northwest Europe and Southern Europe from 1385 to 1800, highlighting the role of institutions in economic growth and divergence.

The significant increase in money and income per capita in early modern England, marking a turning point in its economic trajectory. This positive trend suggests enhanced economic prosperity.

The sustained injections of gold and silver into Europe's economy, driven by trade with the Americas, facilitated market integration and the Commercial Revolution. This influx of precious metals helped to overcome financial frictions and nominal rigidities, leading to significant economic growth.