Creative Destruction in the European State System : 1000-1850 Please do not Circulate

  title={Creative Destruction in the European State System : 1000-1850 Please do not Circulate},
  author={David Sch{\"o}nholzer and Eric Weese},
  • David Schönholzer, Eric Weese
  • Published 2018
We argue that the optimal level of competition between states is subject to a tradeoff between short-term losses and long-term gains in economic growth. In a process of creative destruction, higher quality states displace lower quality states in the market for governance at a cost. We provide evidence for both the costs and benefits of state competition using newly available data on the universe of boundary changes for all European states combined with city population data over 1000-1850. In… CONTINUE READING


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