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Can Kings Create Towns that Thrive? The long-term implications of new town foundations

Enflo, Kerstin LU orcid and L. Cermeño, Alexandra LU orcid (2019) In Journal of Urban Economics 112. p.50-69
Abstract
We examine the long-term effects of a series of Swedish towns founded by the Crown during the early modern period. Their advantage over rural parishes consisted in having monopoly rights to trade with the local hinterland. Since the optimum sites were occupied by medieval towns, the Crown could only aim for second-rate locations. Using difference-in-difference combined with Propensity Score Matching, we find that a reduction in the distance to town increased gross production and population up to 30-40 km away. However, there is no evidence of increasing per capita production or yields. These natural constraints could only support a sluggish growth in the towns themselves. However, after the Industrial Revolution, the towns began to thrive.... (More)
We examine the long-term effects of a series of Swedish towns founded by the Crown during the early modern period. Their advantage over rural parishes consisted in having monopoly rights to trade with the local hinterland. Since the optimum sites were occupied by medieval towns, the Crown could only aim for second-rate locations. Using difference-in-difference combined with Propensity Score Matching, we find that a reduction in the distance to town increased gross production and population up to 30-40 km away. However, there is no evidence of increasing per capita production or yields. These natural constraints could only support a sluggish growth in the towns themselves. However, after the Industrial Revolution, the towns began to thrive. We argue that town status signalled the commitment of the Crown to nurture these locations creating positive expectations despite their natural constraints. During industrialization, agglomeration economies led them to become significantly large urban areas persistent until today. (Less)
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author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
place-based policies, path dependency, urbanization, agricultural surplus
in
Journal of Urban Economics
volume
112
pages
50 - 69
publisher
Elsevier
external identifiers
  • scopus:85066936854
ISSN
1095-9068
DOI
10.1016/j.jue.2019.06.001
project
The evolution regional economies in the Nordic region – A long run approach
language
English
LU publication?
yes
id
cdc58665-3cd4-4642-892d-fa4cc84ed6a2
date added to LUP
2019-06-10 13:52:12
date last changed
2022-04-26 01:08:47
@article{cdc58665-3cd4-4642-892d-fa4cc84ed6a2,
  abstract     = {{We examine the long-term effects of a series of Swedish towns founded by the Crown during the early modern period. Their advantage over rural parishes consisted in having monopoly rights to trade with the local hinterland. Since the optimum sites were occupied by medieval towns, the Crown could only aim for second-rate locations. Using difference-in-difference combined with Propensity Score Matching, we find that a reduction in the distance to town increased gross production and population up to 30-40 km away. However, there is no evidence of increasing per capita production or yields. These natural constraints could only support a sluggish growth in the towns themselves. However, after the Industrial Revolution, the towns began to thrive. We argue that town status signalled the commitment of the Crown to nurture these locations creating positive expectations despite their natural constraints. During industrialization, agglomeration economies led them to become significantly large urban areas persistent until today.}},
  author       = {{Enflo, Kerstin and L. Cermeño, Alexandra}},
  issn         = {{1095-9068}},
  keywords     = {{place-based policies; path dependency; urbanization; agricultural surplus}},
  language     = {{eng}},
  month        = {{06}},
  pages        = {{50--69}},
  publisher    = {{Elsevier}},
  series       = {{Journal of Urban Economics}},
  title        = {{Can Kings Create Towns that Thrive? The long-term implications of new town foundations}},
  url          = {{https://lup.lub.lu.se/search/files/96418912/CEPR_Can_Kings_Create_Towns_that_Thrive.pdf}},
  doi          = {{10.1016/j.jue.2019.06.001}},
  volume       = {{112}},
  year         = {{2019}},
}