Did the Glorious Revolution Contribute to the Transport Revolution? Evidence from Investment in Roads and Rivers
59 Pages Posted: 25 Aug 2009
Date Written: 2009
The Glorious Revolution has been linked with Britain's economic development in the eighteenth century. This paper examines its impact on early transport improvements. First, it shows that several road and river undertakers in the 1600s had their rights violated because of political changes and actions taken by the Crown or Parliament. Second, it shows that the likelihood of rights violations was lower after 1689. Third, it uses structural breaks tests to demonstrate that the level of road and river investment was substantially higher after the mid-1690s. Together the evidence suggests that the institutional changes following the Glorious Revolution reduced political risk and uncertainty for infrastructure undertakers and that they responded by proposing and financing more projects.
Keywords: Property Rights, Investment under Uncertainty, Glorious Revolution, Transport Revolution
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