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Abstract:
Inequality is an important threat to the globalization of the world economy. This contribution uses a new measure of inequality: height inequality. It covers, for the 1950-80 period, not only wage recipients, but also the self-employed, the unemployed, housewives, children, and other groups who may not be participating in a market economy. It turns out that within-country inequality is higher in periods of greater openness.

We also find that inequality leads to a "globalization backlash". The closing of commodity and capital markets has always taken place during inequality peaks or 5-10 years afterwards.

Inequality, Globalization, Anthropometrics

Abstract:
Trends in mortality, nutritional status and food supply are compared to other living standard indicators for the Weimar Republic (1919-1933) and for the early years of the Nazi regime (1933-1937). The results imply that Germany experienced a substantial increase in mortality rates in most age groups in the mid-1930s, even relative to those of 1932, the worst year of the Great Depression. Moreover, children's heights - an indicator of the quality of nutrition and health - were generally stagnating between 1933 and 1938, but had increased significantly during the 1920s. Persecution, by itself, does not explain such an adverse development in biological welfare; the non-persecuted segments of the German population were affected as well. The reason for this adverse development was caused by the fact that military expenditures increased at the expense of public health measures. In addition, food imports were curtailed, and prices of many agricultural products were controlled. There is ample evidence that this set of economic policies had an adverse effect on the health and nutritional status of the population. The highly developed areas of Germany with large urban sectors and the coastal regions of the Northwest were affected most from the policy of restricting imports of protein-rich agricultural products.

Autarchy, Market Disintegration, Health

Abstract:
We compare trends in mortality, nutritional status and food supply to other living standard indicators for the early years of the Nazi period. We find that Germany experienced a substantial increase in mortality rates in most age groups in the mid-1930s, even relative to those of 1932, the worst year of the Great Depression. Expenditures on rearmament grew at the expense of public health measures. Food imports were curtailed, and prices of many agricultural products were controlled. There is ample evidence that this set of economic policies had an adverse effect on the health of the population.

Abstract:
The size effect is an important capital market anomaly, which could not be explained by standard theory so far: stocks of smaller firms do often better than large caps. Risk measures did not invalidate these results in previous studies. Our hypothesis is that the size effect appears (and will re-appear) during the wars and the decade after wars as well as other economic and political crises, because risk-averse investors might tend to buy blue chips. In order to test this, we estimate the size effect for the pre-WWI period (1872-1913) and the WWI period and its aftermath. We connect those time series with Stehle's (1997) estimates for 1954 through 1990, so that a number of hypotheses can be tested with N=78.

Size effect, asset pricing, capital market, financial history

Abstract:
This study is the first to explore long-run trends of numeracy for the 1820-1949 period in 165 countries, and its contribution to growth. Estimates of the long-run numeracy development of most countries in Asia, the Middle East, Africa, America, and Europe are presented, using age-heaping techniques. Assessing the determinants of numeracy, we find school enrolment as well as Chinese instruments of number learning to have been particularly important. We also study the contribution of numeracy as measured by the age-heaping strategy for long-run economic growth. In a variety of specifications, numeracy mattered quite strongly for growth patterns around the globe.

human capital, age heaping, growth, industrial revolution, numeracy

Abstract:
A rapidly growing literature in industrial economics and regional economics uses data sets of individual firms or regional firm creation rates to answer the central question: What makes entrepreneurs? Which factors encourage some people to set up their own business and create jobs, and what prevents potential entrepreneurs from doing so? This contribution explores the determinants of regional differences in firm creation rates by using a new data set of 4036 individual firms from Southwest Germany around 1900. Agglomeration effects and earlier firm creations stimulate current firm creation. In addition, a small and medium firm environment allows the formation of specific human capital - another favourable factor for a dynamic firm creation process in some regions.

Abstract:
Endogenous growth theory suggests that human capital formation plays a significant role for the 'wealth and poverty of nations.' In contrast to previous studies which denied the role of human capital as a crucial determinant of for really long-term growth, we confirm its importance. Indicators of human capital like literacy rates are lacking for the period of 1450-1913; hence, we use per capita book production as a proxy for advanced literacy skills. This study explains how, and to what extent, growth disparities are a function of human capital formation.

Book Production, Economic Growth, Human Capital

Abstract:
We employ a non-parametrical approach to growth accounting (Data Envelopment Analysis, DEA) to disentangle the proximate sources of labour productivity growth in 41 nations between 1929 and 1950 by decomposing productivity growth into four components: technological change, efficiency catch-up (movements towards the production frontier), capital accumulation and human capital accumulation. We show that efficiency catch-up generally explains productivity growth, whereas technological change and factor accumulation were limited and distorted by the effects of war. War clearly hampered efficiency. Moreover, an unbalanced ratio of human capital to physical capital (a gap to the technological leader) was crucial for efficiency catching-up.

DEA, growth accounting, productivity, interwar period

Abstract:
The average height of children is an indicator for the quality of nutrition and health care. Heights have never declined over longer time spans in Eastern Germany since 1880 - except for the most recent period 1997-2006. In the Eastern German Land of Brandenburg, a data set of 253,050 pre-school height measurements was compiled and complemented with information on parents' schooling and employment status. Unemployment might have negative psychological effects, with impact on health care. Both a panel analysis of districts and an assessment at the individual level yield the result that increasing unemployment was in fact the major driving force.

height, unemployment, Eastern Germany, welfare measurement

Abstract:
Making profits in wartime: corporate profits, inequality, and GDP in Germany during the First World War. This article reconsiders, and rejects, Kocka's (1973) hypothesis that a strong income redistribution from workers to capital owners occurred in Germany during the First World War. A small number of firms profited from the war, but the majority experienced a decline in real income, similar to the decline in workers' real wages. This finding also has important implications for the political history of the Weimar Republic. The authors also use their figures to improve German GDP estimates for the war period, since their sample makes it possible to estimate private service sector development. Economic indicators were worse for the war year of 1917 than previously believed.

Abstract:
We use a newly developed data set of 39,343 high-value patents granted between 1877 and 1918 to demonstrate that technological progress during German industrialization occurred in at least four different technological waves. We distinguish the railway wave (1877-86), the dye wave (1887-96), the chemical wave (1897-1902), and the wave of electrical engineering (1903-18). Evidence is presented that inter-industry knowledge spillovers between technologically, economically, and geographically related industries were a major source for innovative activities during German industrialization. We also show that technological change affected the geographical distribution of innovative regions. Using an index of technologically revealed comparative advantage we find that regions that increased their innovativeness during the waves of technological progress revealed special strength in technological clusters like electrical engineering, mechanical engineering, or chemicals.

Abstract:
Age data frequently display excess frequencies at attractive numbers, such as multiples of five. We use this "age heaping" to measure cognitive ability in quantitative reasoning, or "numeracy". We construct a database of age heaping estimates with exceptional geographic and temporal coverage, and demonstrate a robust correlation of literacy and numeracy, where both can be observed. Extending the temporal and geographic range of our knowledge of human capital, we show that Western Europe had already diverged from the East and reached high numeracy levels by 1600, long before the rise of mass schooling or the onset of industrialization.

Age Heaping, Europe, Human Capital, Literacy, Long-term Growth

Abstract:
We use a newly developed data set of 39,343 high-value patents granted between 1877 and 1918 to demonstrate that technological progress during German industrialization occurred in at least four different technological waves. We distinguish the railway wave (187786), the dye wave (188796), the chemical wave (18971902), and the wave of electrical engineering (190318). Evidence is presented that inter-industry knowledge spillovers between technologically, economically, and geographically related industries were a major source for innovative activities during German industrialization. We also show that technological change affected the geographical distribution of innovative regions. Using an index of technologically revealed comparative advantage we find that regions that increased their innovativeness during the waves of technological progress revealed special strength in technological clusters like electrical engineering, mechanical engineering, or chemicals.

Abstract:
Age data frequently display excess frequencies at round or attractive ages, such as even numbers and multiples of five. This phenomenon of age heaping has been viewed as a problem in previous research, especially in demography and epidemiology. We see it as an opportunity and propose its use as a measure of human capital that can yield comparable estimates across a wide range of historical contexts. A simulation study yields methodological guidelines for measuring and interpreting differences in age heaping, while analysis of contemporary and historical datasets demonstrates the existence of a robust correlation between age heaping and literacy at both the individual and aggregate level. To illustrate the method, we generate estimates of human capital in Europe over the very long run, which support the hypothesis of a major increase in human capital preceding the industrial revolution.

Human Capital, Age Heaping, Growth, Industrial Revolution, Numeracy