If both downturns were caused by workers' improved ability to bargain collectively, then why was the Great Depression so much more severe than its precursor? According to our model, an increase in monopoly power amplifies the impact of collective bargaining on output and employment. Hence, if...

The emergence of medieval markets has been seen in the literature as hampered by lack of contract enforcement and institutions like merchants’ communal responsibil-ity. Merchants traveling to a different marketplace could be held liable for debts in-curred by any merchant from their...