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Complexity Economics Building A New Approach To Ancient Economic History 1St Ed Edition Koenraad Verboven Full Chapter
Complexity Economics Building A New Approach To Ancient Economic History 1St Ed Edition Koenraad Verboven Full Chapter
Complexity
Economics
Building a New Approach to
Ancient Economic History
Edited by
Koenraad Verboven
Palgrave Studies in Ancient Economies
Series Editors
Paul Erdkamp
Vrije Universiteit Brussel
Brussels, Belgium
Ken Hirth
Pennsylvania State University
University Park, PA, USA
Claire Holleran
University of Exeter
Exeter, Devon, UK
Michael Jursa
University of Vienna
Vienna, Austria
J. G. Manning
Yale University
New Haven, CT, USA
Osmund Bopearachchi
Institute of East Asian Studies
University of California, Berkeley
Berkeley, CA, USA
This series provides a unique dedicated forum for ancient economic histo-
rians to publish studies that make use of current theories, models, con-
cepts, and approaches drawn from the social sciences and the discipline of
economics, as well as studies that use an explicitly comparative methodol-
ogy. Such theoretical and comparative approaches to the ancient economy
promotes the incorporation of the ancient world into studies of economic
history more broadly, ending the tradition of viewing antiquity as some-
thing separate or ‘other’.
The series not only focuses on the ancient Mediterranean world, but
also includes studies of ancient China, India, and the Americas pre-1500.
This encourages scholars working in different regions and cultures to
explore connections and comparisons between economic systems and pro-
cesses, opening up dialogue and encouraging new approaches to ancient
economies.
Complexity
Economics
Building a New Approach to Ancient
Economic History
Editor
Koenraad Verboven
Department of History
Ghent University
Ghent, Belgium
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Switzerland AG 2021
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electronic adaptation, computer software, or by similar or dissimilar methodology now
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publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information
in this book are believed to be true and accurate at the date of publication. Neither the
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The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Contents
v
vi Contents
Part III Epidemics 295
Index357
Notes on Contributors
vii
viii NOTES ON CONTRIBUTORS
ix
x List of Figures
Graph 7.1 Diagram of shares public and private architecture at Potentia 221
Graph 7.2 Diagram of shares public and private architecture at Trea 226
xvii
List of Tables
xix
CHAPTER 1
Koenraad Verboven
1
For example, Verboven, “The Knights Who Say NIE”.
2
See for instance Harper, The Fate of Rome.
K. Verboven (*)
Department of History, Ghent University, Ghent, Belgium
e-mail: koen.verboven@ugent.be
3
See for instance Verboven and Erdkamp, Structure and Performance in the Roman
Economy; Manning and Morris, The Ancient Economy; Scheidel and Von Reden, The Ancient
Economy; Remesal Rodríguez, Revilla Calvo, and Bermúdez Lorenzo, Cuantificar las
economías antiguas; for an earlier example see Finley, Ancient History.
4 K. VERBOVEN
store these data in (big) digital data collections suitable for rapid informa-
tion retrieval or for feeding into visualisation or modelling software.
Integrating the results in economic history research has profoundly
changed the way we look at and think about ancient economies.
But the process of collecting, classifying, processing, and visualising
data is not in itself revealing the dynamics underneath that caused the pat-
terns we find in the data. It is not telling us how economic processes and
outcomes are connected to broader societal structures and dynamics—
social, political, or cultural. Millions of sherds recorded in a database, pro-
cessed through graphs, plotted on maps, will not tell what was in the
minds of their makers, the obstacles they faced, and how they overcame
them. What does it mean if a dataset shows a diachronic shift from wheat
to barley? Does the increased mining activity documented in the ice-core
samples signal high economic performance, or does it merely show that
the Roman state devoted massive resources to exploit silver and gold
deposits in much the same predatory way as the Spanish crown did in
South America more than a millennium later?4 Are the disease burdened
bones from Pompeii showing us how unhealthy urban populations were,
or are they indicating efficient coping strategies for diseases that would
otherwise have killed their victims? What is the outcome of all this in terms
of living standards and well-being? And whose living standards and well-
being are we talking of? It is hard to establish how patterns in disparate
and discontinuous datasets are related to each other. What is the connec-
tion, for instance, between patterns in amphorae finds and output of wine
in production areas, given that barrels and wineskins have left little or no
traces in the archaeological record? It is even harder to establish how they
relate to patterns in non-material historical reality. Can we link urbanisa-
tion patterns to institutional changes? How many micro-level studies do
we need to make statements about trends at meso- and macro-levels?
Uncertainty increases every time we posit connections between datasets
or we generalise from sample sets. Nevertheless, these questions need to
be addressed. Economic history is not just about documenting change. It
is about understanding and explaining it. Why was the Roman Empire so
good at producing and distributing not just the basic necessities of life,
but so much more that constitutes “a good life” or “civilisation”: high-
quality tools, materials, and know-how to build comfortable houses, high-
calorie, protein-rich food, good shoes, basic health-care, art, and
4
Scheidel, “In Search of Roman Economic Growth”, 50.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 5
5
Verboven, “Ancient Cliometrics”.
6
Hopkins, Conquerors and Slaves, 19–20; Hopkins, “Taxes and Trade”, 43; see the discus-
sion in Verboven, “Ancient Cliometrics”, 347–50.
6 K. VERBOVEN
7
Hopkins, “Models, Ships and Staples”, 85; see also Hopkins, “Taxes and Trade”;
Hopkins, “Rome, Taxes, Rents and Trade”; Hopkins, “Rents, Taxes, Trade and the City
of Rome”.
8
Wilson, “Approaches to Quantifying Roman Trade”.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 7
that may have emerged?9 The paradigm has achieved a lot and proved use-
ful to explain short-term economic developments in stable situations,
when exogenous shocks are absent or mild enough to be absorbed. The
evident downside of the approach, however, is that it starts from the ques-
tion “why doesn’t reality conform to the model?” There is a clear tension
between the equilibrium-drive inherent in the logic of walrassian markets,
and the imperfections, contingencies, and uncertainties of life; the acci-
dents, misunderstandings, ignorance, lack of information, miscalculations,
and change of minds and hearts of real people.10 As Douglass North put
it: “The rationality assumption of neoclassical economics assumes that the
players know what is in their self-interest and act accordingly. Ten millen-
nia of human economic history says that is a wildly erroneous assumption.”11
Not surprisingly, using Walrasian logic to explain economic history—to
retrodict rather than to predict—has rarely been successful. Comparative
advantage, to give only one example, may be a useful concept to explain
why it made sense that Egypt exported grain and Italy wine. It is not very
useful to explain why this eventuality materialised only from the first cen-
tury BCE onwards and remained heavily state-regulated throughout the
rest of Roman history.
Part of the difficulty is that from the viewpoint of general equilibrium
theory history is always a succession of exogenous shocks. This makes it
hard for any economy to “discover” its equilibrium in the real world.12
Equilibrium economics deals with this by identifying the shocks and
changing externalities, and establishing how these prevent or change the
equilibrium predicted by economic theory. For instance, text-book
wisdom predicts that pandemics increase the price of labour (now scarce)
and decrease the price of land (now abundant). We assume that long-term
strong and stable polities (such as the Roman Empire) support and are
supported by resilient economic systems, capable of absorbing minor local
9
Cf. Arthur, Complexity and the Economy, 3: “[E]conomics early in its history took a sim-
pler approach, one more amenable to mathematical analysis. It asked not how agents’ behav-
iors would react to the aggregate patterns these created, but what behaviors (actions,
strategies, expectations) would be upheld by—would be consistent with—the aggregate pat-
terns these caused. It asked in other words what patterns would call for no changes in micro-
behavior, and would therefore be in stasis, or equilibrium” (emphasis by the author).
10
On the advantages of equilibrium economics and its limits see Arthur, 3–4.
11
North, “Some Fundamental Puzzles in Economic History/Development”, 237.
12
The terminology is revealing. It suggests that equilibrium is really “out there”. It is
merely hard to find because life keeps getting in the way.
8 K. VERBOVEN
13
Freeman and Carchedi, Marx and Non-Equilibrium Economics, viii.
14
Beinhocker, The Origin of Wealth.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 9
interact with each other and adjust their actions and strategies to the per-
ceived outcome of previous actions. Economic systems are themselves
subsystems of larger social and ecological complex adaptive systems.
Complex societies can be defined as complex adaptive social systems char-
acterised by the interaction of many diverse interacting components (indi-
viduals, groups, organisations, etc.) and by elaborate diversified rule sets,
some of which support societal subsystems, such as the economic system.15
A variety of techniques can be used to study the emergent patterns of
complex adaptive systems. One of these, familiar to historians, is Network
Analysis to visualise both the structure and behaviour of systems. Another,
more familiar to archaeologists, is using the framework of thermodynam-
ics to identify the controlling variables and thresholds of a society’s Socio-
ecological system (SES). Yet another familiar to archaeologists, is
agent-based modelling, whereby the results derived from computer simu-
lations are compared to observed real-world patterns to verify or falsify
assumptions regarding the cause of these patterns.
Contrary to neoclassical economics, complexity economics analyses
data as the outcome of network dynamics and the logic of change, rather
than as deviations or confirmations of theoretical supply and demand
curves. The questions then relate to the structure of these networks, the
regularities in their behaviour and their degree of inter-connectedness.
The advantage for ancient economic historians (and more generally eco-
nomic historians working on preindustrial economies with poorly quanti-
fiable data) is that it opens up for analyses source-data that are relevant to
study economic development but are poorly suited for neoclassical analy-
ses. Thus, for economic historians, complexity economics complements
the more established (or familiar) neoclassical approaches.
15
For a more elaborate discussion see the chapters by Verboven.
10 K. VERBOVEN
16
The chapter is useful also to links this book to a previous book in the same research
programme: Verboven and Erdkamp, Structure and Performance in the Roman Economy.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 11
17
Temin, The Roman Market Economy; Bang, The Roman Bazaar.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 13
depending on size and suggest occupation ratios. This provides new esti-
mates for population densities in the range of 75–125 persons per hectare,
considerably below the commonly used density figures of 120–150 per-
sons per hectare, based on Pompeii and Herculaneum combined with
comparative figures from medieval and early modern times. The authors
suggest these low-density figures reflect the nature of small towns as ser-
vice centres rather than population centres.
Rinse Willet in Chap. 8 argues that “[c]ities and their formation are
good examples of how the actions of a number of individual agents pro-
duce structures that display complexity and behave as complex systems”.
Empirical studies of modern cities and urban networks reveal scalar prop-
erties (or self-similarity)—similar patterns and functions emerge at differ-
ent scales; for instance, neighbourhoods have shrines or chapels, larger
units churches or temples, cities cathedrals or temples servicing a wider
area, and so on. The emergence of these properties is less studied and
understood for premodern urban systems. Willet argues that cities in
Roman Asia Minor were part of wider urban networks. We can study these
as complex adaptive systems by using archaeological proxy data, such as
(but not limited to) surface sizes and public buildings. The uneven geo-
graphic distribution of cities cannot be explained by topography and envi-
ronment alone. The increase in the number of cities in the Roman period
and their geographic spread reflect institutional changes betraying
increased division of labour, social hierarchy, and inequality—signs of
increasing complexity in the overall urban system. Public buildings pro-
vide more information. Willet focuses on theatres and bath-houses. Both
required considerable investments; the latter, in addition, substantial infra-
structure and organisation to ensure water and fuel supply—both signify-
ing greater societal and economic complexity. The data show a dramatic
increase of numbers and sizes during the Roman period. Rank-size analy-
sis, using surface areas, shows a convex pattern, which may reflect a less
than perfect systemic integration. The province of Asia, however, shows
markedly less convexity, indicating a greater, although still imperfect, inte-
gration. We cannot yet make out whether this integration was (also) the
result of economic integration or (merely) of political factors, but it seems
to be path-dependent and related to the urbanisation process during
Roman times. Roman administration and economic commercialisation
increased the interdependence of cities. Hierarchy in the urban system was
an emergent property of this development.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 15
18
Verboven, “Ancient Cliometrics”.
16 K. VERBOVEN
19
By Verboven, Preiser-Kapeller, Brughmans, Van Limbergen and Vermeulen, Willet
and Elliot.
1 INTRODUCTION: FINDING A NEW APPROACH TO ANCIENT PROXY DATA 17
held in Sagalassos, Turkey, in 2015 funded by this network and by the Sagalassos
Archaeological Research Project. Special thanks are due to Jeroen Poblome, direc-
tor of the Sagalassos Project for making this possible.
Bibliography
Arthur, W. Brian. Complexity and the Economy, 2015.
Bang, Peter Fibiger. The Roman Bazaar: A Comparative Study of Trade and
Markets in a Tributary Empire. Cambridge; New York: Cambridge University
Press, 2008.
Beinhocker, Eric D. The Origin of Wealth: Evolution, Complexity, and the Radical
Remaking of Economics. Boston, Mass: Harvard Business School Press, 2006.
Finley, M. I. Ancient History: Evidence and Models. New York, N.Y., U.S.A.:
Viking, 1986.
Freeman, Alan, and Guglielmo Carchedi. Marx and Non-Equilibrium Economics.
Cheltenham, UK; Brookfield, US: Edward Elgar, 1996.
Harper, Kyle. The Fate of Rome: Climate, Disease, and the End of an Empire.
Princeton: Princeton University Press, 2017.
Hopkins, Keith. Conquerors and Slaves. Cambridge; New York: Cambridge
University Press, 1978.
Hopkins, Keith. ‘Models, Ships and Staples’. In Trade and Famine in Classical
Antiquity, edited by Peter Garnsey and Charles Richard Whittacker, 84–109.
Cambridge Philological Society Supplementary Volume No. 8.
Cambridge, 1983.
Hopkins, Keith. ‘Rents, Taxes, Trade and the City of Rome’. In Mercati perma-
nenti e mercati periodici nel mondo romano. Atti degli Incontri capresi di storia
dell’economia antica: (Capri 13–15 ottobre 1997), edited by Elio Lo Cascio,
253–67. Bari: Edipuglia, 2000.
Hopkins, Keith. ‘Rome, Taxes, Rents and Trade’. Kodai 6 (1995/1996): 41–75.
Hopkins, Keith. ‘Taxes and Trade in the Roman Empire (200 B.C.–A.D. 400)’.
Journal of Roman Studies 70 (1980): 101–25.
Manning, Joseph Gilbert, and Ian Morris, eds. The Ancient Economy: Evidence and
Models. Stanford, Calif.: Stanford University Press, 2005.
North, Douglass C. ‘Some Fundamental Puzzles in Economic History/
Development’. In The Economy as an Evolving Complex System II, edited by
W. Brian Arthur, Steven N Durlauf, and David A Lane, 223–37. Reading:
Addison-Wesley, Advanced Book Program, 1997.
Remesal Rodríguez, José, Victor Revilla Calvo, and Juan Manuel Bermúdez
Lorenzo, eds. Cuantificar las economías antiguas: problemas y métodos =
Quantifying Ancient Economies: Problems and Methodologies. Collecció
Instrumenta 60. Barcelona: Universitat de Barcelona. Edicions, 2018.
18 K. VERBOVEN
Theoretical Frameworks
and Methodologies
CHAPTER 2
Koenraad Verboven
K. Verboven (*)
Department of History, Ghent University, Gent, Belgium
e-mail: Koen.Verboven@ugent.be
1
Scheidel and Friesen, “The Size of the Economy and the Distribution of Income in the
Roman Empire”, 1, on inequality as a structural feature of historical states and empire see
Scheidel, The Great Leveler; compare also Piketty, Le capital au XXIe siècle; Milanovic,
Lindert, and Williamson, “Pre-Industrial Inequality*”; Milanović, Global Inequality. On the
size and development of the Roman economy see also Harper, The Fate of Rome; but see also
the critical remarks by Haldon et al., “Plagues, Climate Change, and the End of an Empire”.
2
See Verboven 2015 for a more detailed discussion of New Institutional Economics and
its use in ancient economic history.
2 PLAYING BY WHOSE RULES? INSTITUTIONAL RESILIENCE, CONFLICT… 23
3
Alesina and Giuliano, “Culture and Institutions”. Propose “(formal) institutions” and
“culture” as “more appropriate and less confusing” labels (902).
24 K. VERBOVEN
7
See Ogilvie, “Whatever Is, Is Right?”, and there for more references; see for instance the
debate on the guilds between Greif, Institutions; Dessi and Ogilvie, “The Political Economy
of Merchant Guilds”; Ogilvie, “Whatever Is, Is Right?”; Ogilvie, “Guilds, Efficiency, and
Social Capital”; Ogilvie, “Rehabilitating the Guilds”; Ogilvie, Institutions and European
Trade; Epstein, “Craft Guilds in the Pre-Modern Economy”; Gelderblom, Cities of
Commerce; Ogilvie, The European Guilds. For the now more popular state-centred approach,
see Johnson and Koyama, “States and Economic Growth”.
26 K. VERBOVEN
Clearly, however, Rome did not conquer the Seleucid empire or Gaul
because its economy was more efficient, but because its army was. The
demand for cheap labour in second-century BCE Italy may have drawn
enslaved war captives, but these were not captured because the slave-mode
of production in Italy was more efficient than traditional agriculture in the
conquered territories. Caesar did not win power because the market
favoured him, but because he was a better and luckier military commander.
Rome was a huge metropolitan market, but Augustus well understood
that market incentives alone would not suffice to secure the capital’s needs.
The imperial food supply system—the anonna—was designed as a mix of
direct control, compulsory services and subsidised trade.
But if markets are merely part of the story and if institutional change is
neither only driven by or necessarily directed towards better market insti-
tutions, why did institutional arrangements in the Roman empire give so
much scope to free enterprise and market exchanges compared to other
empires such as Han China? How important was market competition in
institutional change in the Roman empire?
Designed institutions (laws, statutes, procedures, etc.) are relatively
easy to change in principle. In practice, however, conflicts of interests and
entanglement with other institutions can obstruct even the most essential
changes—especially in societies where resources are distributed unequally
in favour of elites who monopolise or control the right to create or change
formal institutions and determine their enforcement. Conflicts or compe-
tition over the distribution of resources—induced by exogenous factors
(such as wars, epidemics, or resource depletion) or endogenous tensions
(such as elite competition or social conflicts)—are the main reason why
formal institutions are adapted. In the long(er) run changing cultural
beliefs as well may lead to changes in designed institutions. Same-sex mar-
riages are an example in our time. The right for mothers to inherit from
their children ab intestate is a Roman example. Most are only minor
changes (for instance Nero’s senatorial decree of 61 CE laying down new
rules for sealing legal documents),8 but some introduce major changes.
The Lex Aebutia, for instance—which generalised the formulary proce-
dure in litigation making the edicts of praetor urbanus and the aedilis
8
Suet., Ner. 17; Paulus, Sent. 5,25,6; cf. Meyer, Legitimacy and Law in the Roman
World, 165–68.
2 PLAYING BY WHOSE RULES? INSTITUTIONAL RESILIENCE, CONFLICT… 27
9
Gai., Inst. IV, 30; Gell., NA XVI, 10; Jolowicz and Nicholas, A Historical Introduction
to the Study of Roman Law, 218–25; Schiller, Roman Law, Mechanisms of Development, 405.
10
See Alesina and Giuliano, “Culture and Institutions” for an overview.
11
Williamson, “The New Institutional Economic: Taking Stock, Looking Ahead”, 596;
Eggertsen, “A Note on the Economics of Institutions”, 13. On the long persistence of cul-
tural traits see for instance Putnam, Leonardi, and Nanetti, Making Democracy Work. For
attempts to model the impact of institutional change on cultural beliefs and values see Alesina
and Giuliano, “Culture and Institutions”.
12
See Alesina and Giuliano, “Culture and Institutions”, who stress the interaction between
culture and formal institutions, rather than any one-sided causality.
28 K. VERBOVEN