UCLA

This dissertation studies the determinants of political institutions and their impact on economic development in various historical contexts. The first chapter asks: Why did the Catholic Church’s power decline earlier in Northwestern Europe than in the East and South? I argue that differential demand for collective security in the face of the possible invasion by the “infidels” was an important factor in the Church-state relations. Catholic states had to cooperate to achieve military success and, therefore, delegated legal and fiscal authorities to the Church. To measure the Church’s political power, I have assembled a novel dataset on appointments of bishops between 1198 and 1517. I find that in the dioceses located closer to the “infidels,” bishops were differentially more likely to be selected by the pope or cathedral chapters than by secular rulers.

The second chapter examines the economic origins of discrimination against Jewish entrepreneurs in the Russian Empire. Several changes in government policy between 1889 and 1894 freed large amounts of domestic private capital that now had to be reinvested in the equity market. I explore the relationship between anti-Jewish restrictions in the equity market, that began in 1890, and capital intensity of manufacturing industries. Using the RUSCORP database of all manufacturing corporations created in 1891–1902 and novel data on all Russian factories in 1890, I find a positive association between capital intensity and the probability of restrictions.

In the third and final chapter, I study the role of labor mobility restrictions, that existed under serfdom, in shaping economic development. In the Russian Empire, twenty-three million people, who were serfs in 1858 and were not allowed to move to cities, were freed by 1870. I develop a structural model of rural-urban migration incorporating restrictions on mobility, features of the countryside and cities, and the travel costs. I estimate this model using novel detailed data on peasants, cities, and railroads in 1811–1910. The estimated parameters suggest that construction of railroads was the single most important factor explaining rural-urban migration. This is likely because allocation of rural labor was not efficient historically, independently from the impact of serfdom.