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  5. The Dawn of Civilization Metal Trade and the Rise of Hierarchy

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

The Dawn of Civilization Metal Trade and the Rise of Hierarchy

  • Matthias Fluckiger
  • Mario Larch
  • Markus Ludwig
  • Luigi Pascali
American Economic Review (Forthcoming)

Abstract

In the 4th millennium BC, our ancestors witnessed a remarkable transformation, progressing from petty chiefdoms to political states and cities. The causes of this “Urban Revolution” remain unclear. We conjecture that the discovery of bronze and the ensuing long-distance trade played a crucial role. Using novel panel data and 2SLS techniques, we demonstrate that trade corridors linking metal mines to fertile lands were more likely to experience the Urban Revolution. We propose that transit bottlenecks facilitated the emergence of a new taxing elite. We formally test this appropriability theory and provide several case studies in support.

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