欧洲经济学历史知识笔记(英文版)word版.docx

Economic systems existed in Europe- Economics 4130Feudalism Timing of feudalism1. Firmly established by 800 AD2. Systematic decline after 12503. Rapid decline after 13504. Gone by 1500 ADThree important problems1. Why the rise of feudalism -there are varies approaches2. What was economic system of feudalismwhat problem it had solved?3. Why feudalism decline?Why the rise of feudalism -Three varies approachesThe explanation for rise of feudalism has at least 3 different modals- based on presence or absence of trade1. The 1st approach is the traditional view, adopted by most textbook2. The 2nd approach is North/Thomas modal-based on absence of trade 3. The 3rd approach is Pirenne Viewwhy we have rise of economic of feudalism 1ST APPROACH: THE TRADITIONAL VIEWFeudalism only presents at absence of trade, which spurs self-contained local economy. It assume when there is trade, there can be no feudalism.The development of trade-three different economic systems1) Trade in Western Europe-feudalism 2) Trade through out Mediterranean area and west Europe-this where trade first beganMediterranean areaa. turns out 3000 BCdevelopment of civilizationemerge into powerful economy. Trade through out Mediterranean area. b. around 1500 BCeconomy went awaywhy?big tsunami destroy major citiesc. the collapse of civilization made the center of economics Fenisian start trading with western Europefirst go beyond into AtlanticReasons-(1)*seek something like shellsea snearl?People take these, extract stuff to make substance as purple dye, which used to make clothes for people from upper class or in church. 20,000 shells just make 1 gram. They used up and ran out these creatures. They tried to look for new places that have these. (2)* find the source of tin Deposits of tin can be found in England. Tin was used along with copper to make tools or weapons. Along the trip, they engaged trade with residents along the way.E.g. Cornwall somewhere in England, has plenty deposits of tin(down in Penzance and Penryn). The coastline of Cornwall is extremely rocky (rocks all over the place). This makes the transporting difficult. Eventually, they found the idea place to land somewhere near Penzance. Its a little island(tidal island). When tide in, its an island; when tide out, its not an island, people brought tin and loaded it on ships meanwhile waited for tide. d. The raise of Greece countyMacedonia establish the empire round 300 BC. The empire of Alexander the Great trade with Mediterranean and far-east e. Roman empire took over-expansion of Roman empiref. Huns from Mongoliaconflict with Roman-Roman collapsesWith the decline of Roman Empire, the trade broke down. People in western Europe has to be self-contained. They chose feudalism. Every thing is produced at local level in religion, military or economic. 3) Trade in Far-east area Alexander the Great started to trade. 2ND APPROACH-NORTH/THOMAS Traditional view is correct, the collapse of Roman Empire-controversial view They held different view: focus on why they choose the particular type of feudalism. N/T viewagricultural approach (landlord owns land)-share of input scheme-land is divided into domain and non-domainA various contracts-(1) fixed rent (2) fixed wage (3) share of output (4) share of inputLocus riskTransaction cost： N/T focus only on bargaining cost only (the cost on the agreeing on value and price)Whether there is or no market:1. Presence of market-will be no bargaining cost2. No market-there is bargaining cost for fixed rent, fixed wage or share of output, but no bargaining cost With the collapse of trade, there is small population (very few people) and lots of land that owned by the landlords. What is valuable in production is the labor force. The labor force went to negotiate with the landlords: they voluntarily agreed to take labor dues(劳役) to the landlord, in return, the landlord had to provide them protection and justice.Reason behind this: With Roman Empire collapsing, chaotic period came out. Fighting and lots of people went around. People were afraid, and landlord has military force. Protection has its value.Exact nature of economic of feudalism landlords own the land, land is called landlords manorthey divide the manor into two parts:(1) Landlords domains (2) Non-domainsWorkers will work all of the land. Output of non-domains goes to worker (labor, serfs) and output of domain goes to the landlord. (good year, bad year, doesnt matter)Question: why did they do this? N/D is called the share of input scheme-whole view: scheme of contract, agriculture contract North/Thomas argue What others they could choose, what the difference does it make whether there is a market?1. If they choose scheme of contractLittle Review: notion of transaction costmake economics exchange a. finding a buyer or seller b. agreeing price of the valuebargain costc. enforcement of contract you get intosupervision costWhen North/Thomas consider transaction cost is very important, focus on the bargain cost (only)agreeing price of the value. In agriculture, what a difference would make if you have a market?Contract, Locus of risk, Transaction cost ContractLocus of riskTransaction Cost (Bargain cost)in presence of market or in absence of marketFixed rent The laborYesFixed wage The landlordsYesShare of agreement when you have a market. look at the variety of contract.(1) Fixed rent- It is very risky business. Totally depend on the weather. Who bears the risk: the labor(2) Fixed wage-landlord fire someone, and pay the wage- for fixed wage. The landlord bears the risk(3) Share of agreementa. Share agreement about output-ratio (6：9) e.g. 100 acresplant corn40% goes to landlord, 60% goes to serfs. they share the riskb. Share agreement of input scheme (North/Tomas, feudalism) Domain, Non-domain. The condition is different. 土质不同，气候不同，收成不同，The landlord take the risk in domain, the serfs take the risk in non-domain.focus on bargain cost.North/Thomas: self-contained in local level. What the difference whether there is market or not?(1) With the presence of market.The value of rent is determined by a rent market. The market provides info about value, and cost no transaction fee. The price is there, take it or leave it! You dont have to make the decision, the rent or wage is fixed.(2) Without the presence of marketa. The absence of market for fixed rent/wage-for fixed rent/wage When there is limited trade and limited market system, people have to sort out how to make contract and organize the agriculture system. North/Thomas tried to figure out why they particularly chose the feudalism. Given by the nature of agriculture, there will be transaction fee with contract because people are dealing with the real goods and services. And the value of the real goods and services changes over time. *e.g. Serf: How much should I pay for the rent?Landlord: I want one horse per month. (no money)But terrible things happen. 97% horses die. The value of horse go up.Serf: Im paying really high rent!Landlord: Ok, one horse per two months.They have to negotiate how much to pay the rent because the real value changes.b. The absence market for share of outputProblem is in agriculture, products never be the same.For example, 100 bushel of grain. There are clean one and bad or bad one with seeds or dirt. You have to sort out different percentage for each of them. c. The absence market for share of input Domain or non-domain is determined. There is nothing to discuss. Thus, no bargain cost.总结: In a agricultural society, if we focus on bargain cost in presence of absence of trade or market. The contract of sharing the input is the optimal choice.Once the market remerged in western Europe, what happened to feudalism? It went away. What happened to contract? From sharing the input cost to the other kinds of contract.In general, different area of western Europe adopted different share contracts. Some use output sharing, some use input sharing.History background:After the collapse of Roman, all the England was controlled by few people. They gave the field to churches as long as the churches claim to support them. The church gave fields to landlords as long as the landlords support church. A lot of people dont do anything(king, queen), they just consume. They live on domain of villages at local level. Share of input(feudalism): what happen in domain goes to landlord, what happen in non-domain goes to the serfs.Who determine the share of manner of domain and non-domain? It is the landlords who try to get as much domain as they can, in the meantime keep the labor forces healthy. If there is too much domain, there will be rebellion. Criticism: This is voluntary agreement？ The protection and justice was regarded as public good in N/T, actually there was no voluntary arrangement. First, landlords own the military force and the protection was not a public good. Landlords build castle with the gate/ door, which can exclude people from using it. If landlords want, they can just close the door, then the protection was no longer a public good. Second, people who offer the labor were born to be a serf according to traditions. They are forced to choose that option. Third, N/T does not take supervision cost into account. 1. 根本不是voluntaryNorth/ Thomas felt that there was a voluntary agreement between landlord and labor force: landlord owns land while labors own labor. If you provide protection, we will work the land and give the output.a. Actually, there was no manual records of the contract at the beginning of feudalism. The records had been found out when the feudalism has already been there. b. Labor force had no choice but become serfs. They do not get the chance to vote to be landlord or serf. Its a tradition in village. Landlords have trained weapons (military force).2. The protection provided is not public goods. It seems that the landlords provide public goods to serfs. Non rival, non exclusive, each one can consume. But landlords build castle and have troop. When the village is assault, all serfs run into castle. They are safe in castle, and they are consuming the protection. But the problem is that castle has doors and gates. They have the ability to exclude serfs by closing the gate. If you pay me, then I can protect you.总结： 我不是自愿，你也不是无偿。3. They do not take supervision cost into account.Supervision cost is another transaction cost. It is critical to make the economy work. When there is a contract, someone have to supervise or reinforce it.In North/Thomas theory which based on absence of market,1. For fixed rent-there will be no supervision costlabors pay the rent, landlords do not care what the labors do.2. For fixed wageyes, SClandlord: Im paying people to work on my land, I have find tough guy to supervise them, to make sure they are working3. Share of output-No SC4. Share of inputYES, SCIn fact, the SC in feudalism is quite high because when serfs work on the domain, the output goes to landlord. Landlords have to make sure they work hard, there must be SC.If we look at BC only, share of input is great. But if we add the cost together(BC, SC). High SC may offset the benefits brought by the no BC. Why dont they choose share of output scheme? No idea.Traditional view and N/T view are based on the presence of absence of trade. N/T works on why they choose this particular type.Traditional view and N/T view are based on the presence of absence of trade. N/T works on why they choose this particular type.3RD APPROCH: VIEW FORM HARRY PIRENNEDifferent from traditional or N/T view which based on an internal event to Europethe falls of Roman Empire, Pirenne appears to an external eventthe rise of Islamic empire. In economic view, the falls of Rome is no big deal. Because of three reasons:1. Many cities remained-there was some rearrangement of cities. Like the rise of Venice2. Churches, which are very important economic institutions, remained3. Trade remainedHe had evidence of the continuation of trade between the Mediterranean and Europe area.Some certain goods are used after the fall of Rome Empire , include：a. Papyrus(used as something to write on)b. Spicesthey came from far east (far eastMediterranean-western Europe, like cinnamonc. luxurious clothmade of purple dye, which originate from Mediterranean.d. Mediterranean winestill consume in Europee. Slavesin some battle, the captured enemy from west Europe were sold as slaves in Mediterranean. f. Gold coinsyou can find gold coins with the dates after fall of Roman Empire.Pironnie appear to the external eventthe raise of Islamic empirel Brief history: 1632-began to mergestart from Arabian-move to Indian, eastern, Mediterranean-they captured main islands in Mediterraneaneven went into Roman once. 1711conquer Spain, across mountain-into France-want to take all the Western Europemet Charles Matel in town Bourisfailed退回Spain. Mediterranean change from Roman like to Islamic like because there is new region, new language and new legal system. Communication and trade broke down, then the Western Europe became isolated.l Pironnie argues that feudalism comes much later. With the rise of Islamic empire and broken trade, the feudalism rises. He has evidence of this trade disappear after the rise of Islamic empirePapyrus, luxurious cloth, spices and gold coins are no longer used.Criticism of P.V.1. The Islamic rebuilt the Suez Canal. The Suez Canal makes the transport between the western Europe and Mediterranean easier. 2. If the Islam is not going to trade with European. It should have the complete control of Mediterranean to prevent people from trading with Europe3. Papyrus did disappear from trade, but at the same time, there came the emergence of paper, which originate from China and is superior to papyrus. Maybe paper was trade instead.4. The emergence of silver coins between Mediterranean and Europe. Disappearance may mean it was replaced by the silver coins.5. Papyrus, gold coins, luxurious cloth, and spice are the products used by small minoritywealthy people. The theory of arising of feudalism based on the presence of absence on goods like this, not focus on something that used everyday. Like fish, grain. What was economic system of feudalismwhat problem it had solved? According to what we have discussed, feudalism exists either because of the rise of the Roman Empire or the Islamic Empire. Whats it like? There is a good snapshot taken during 11th century in one country. The story has something to do with the Vikings. History:In January 1066,the King of England Edward died (Edward-the Confessor). His brother in law Harold Saxon inherited the England. However, William, a distant relative who lived in Normandy claimed that he was blood related and said Edward had promised him the crown of England. William has Viking blood, then made a Viking movement. *About Vikings. They came from Norway, Denmark, and Swedan. Due to the little land (no farm land), and with the population growing (in 6th, 7th century), some people get in long boat, sailed across the rivers and oceans. 1st recorded conquer by Viking was in 793, a little island in England called Holly island was conquered. Then began the Viking Age. Once, the Vikings wept all over Europe, even far beyond Moscow. According to recording, they owned 700 Viking ships loaded with 30,000 men. The great thing they did-the pirates! Because of the ugly but strong pirates, France made a negotiation by giving them a land in France called Normandy-the island of Northman.Pictures showing:(1) Denmark and Sweden is flat, however the Norway is not plat. There is very little arable land but a lot of mountains and rivers. As the population grew and the land ran out, the Viking started raiding.(2) Viking Museum (in Osico) The ships are symmetrical. They can go in every river in Europe.(3) 793, Viking invaded England, they conquer the little island (Holly Island). This is the 1st recorded Viking raid.911, the King of French officially gave Vikings the Normandy(to the south of England) , for the sake of protecting Paris. In September 1066, William organized invasion of England, across the channel in boats, tried to take over the place with 10,000 men and 3,000 horses, 3 pre-fabricated foat.(?) He landed in Pevensey (Sep.28th). Meanwhile, Harold was in London.In October 1066, the battle began and ended in Harolds failure(Battle of Hastings). William won and gave us the snapshot of what the feudalism is like. Why Harold lost the battle?A. Prior event William landed in beach of South England. Harold fought against another Viking invasion which began in August, 1066. The Danes (the enemy) who didnt know William, had the same force size as William does. They had a battle at Stamford bridge. The King of Norway was killed in the battle and lost the battle(Sep. 25th) Harold went down to meet William as soon as the battle concluded with his army exhausted.B. Bad military intelligenceWhen Harold got there, he sent spies to Northman camp to count how many Norman. Because of the special appearance of the Northman(long hair, bread, dirty) and Saxon priests were clean cut, th