The Economy of Classical Athens (Routledge Explorations in Economic History)

In parallel to the development of democracy, the Athenians of the Classical period established a series of sophisticated economic institutions for the time through which they developed a maritime and commercially oriented economy. This book provides a thorough analysis of this transformation and the functioning of the Athenian economy during the Classical period. Through the approach of New Institutional Economics (NIE), the book explores the establishment of key institutions including property rights protection, the legal protection of commercial contracts, prices determined by the forces of supply and demand, institutions against profiteering, banking services, the provision of loans through interest rates, consumer credit, insurance companies and a (primitive) version of joint-stock companies. Furthermore, the book focuses on the structure of the public sector, on how the state budget was determined and on how decisions on public revenues and expenditures were made. It also provides an integrated and detailed analysis of the social welfare policies that were implemented through the provision of a variety of public goods in Classical Athens. Moreover, it focuses on a series of socio-economic aspects such as the social status of women, slaves and foreigners and the viewpoints of prominent Athenian philosophers regarding economic organization. Finally, the book investigates whether an Athenian economic-political model of governance, based on a combination of advanced economic institutions (of free market type logic, even if in a primordial form) and direct democracy principles, can provide any lessons for modern societies. The book will be of great interest to readers of the economy, history and society of Ancient Greece as well as economic historians, ancient historians and policymakers more broadly. In parallel to the development of democracy, the Athenians of the Classical period established a series of sophisticated economic institutions for the times through which they developed a maritime and commercially oriented economy. Cover 1 Endorsement Page 2 Half Title 4 Series Page 5 Title Page 6 Copyright Page 7 Dedication 8 Table of Contents 10 List of Tables 15 List of Figures 17 List of Images 18 List of Abbreviations (ancient texts) 19 List of Abbreviations (modern terms) 20 Foreword 21 Acknowledgments 26 Chapter 1 Introduction 28 Notes 33 Ancient Greek authors (Perseus Digital Library) 34 Modern Authors 34 Chapter 2 The Ancient Economy: Some Further Introductory Issues 36 2.1 The Debate Regarding the “Backwardness” or “Modernity” of the Ancient Greek Economy 36 2.1.1 Implementing the New Institutional Economics Interpretative Tools and Concepts in the Case of Classical Athens 42 2.1.2 The Issues of Historical Anachronism and Economic Rationality in the Case of Classical Athens 46 2.2. The Relationship between Economics and Institutions: Path Dependence and Institutional Change 49 2.3. The Reforms of Cleisthenes and the Establishment of the Political Institutions of Athenian Democracy 55 2.4. Financing the Political Institutions of the Athenian Democracy 64 Notes 68 Ancient Greek authors (Perseus Digital Library) 70 Modern authors 70 Chapter 3 Adopting a “Turn to the Sea” Strategy and the Transformation of the Athenian Economy 81 3.1 The Gradual Creation of a Maritime Infrastructure during the Archaic Period and the Trireme Warship 81 3.2 Year 483/482 BCE: Themistocles’s Naval Decree: Exogenous Shock and Path Dependence and Change 85 3.2.1 Choosing between Two Paths: A Mathematical Formulation 89 3.2.2 Maritime Infrastructure and the Shipyards of Attica 90 3.2.3 The Athenian Fiscal Expansionary Policy for the Public Good of Defense 93 3.3 The Trierarchy 3P Institution and the Antidosis Procedure 94 3.4 The Athenian Thalassocracy during the Classical Period: A Defense Economics Perspective 100 Notes 107 Ancient Greek authors (Perseus Digital Library) 109 Modern authors 110 Chapter 4 The Protection of Private Property and the Rule of Law 115 4.1 The Importance of Property Rights Protection for Achieving a Prosperous Economy 115 4.2 Property and Commercial Contracts Protection in the Athenian Daily Practice 117 4.3 Dikai Emporikai 120 Notes 122 Ancient Greek authors (Perseus Digital Library) 123 Modern authors 123 Chapter 5 The Athenian Market 126 5.1 The Athenian Agora 126 5.2 Profit-making and the Forces of Supply and Demand 131 5.3 Consumer Protection and Measures against Profiteering 135 5.4 The “Secondary” Sector of the Economy and the Port of Piraeus 139 5.5. Neosoikoi, Philon’s Arsenal and the Athenian Long Walls 143 5.6 The Ancient Greek Philosophers on International Trade Theory 147 5.6.1 Transactional Cost Reductions and the Logic of Comparative Advantage 148 5.6.2 Market Specialization and the Issue of Technological Innovations 150 5.7 Trade and the Athenian Institutions behind International Commercial Treaties 157 5.8 The Athenian Philosophers’ Beliefs Regarding Entrepreneurship, Labor Productivity and Division of Labor 163 5.9 The Agricultural Sector and Husbandry 168 5.10 The Socio-economic Status of Women 170 5.11 The Socio-economic Status of Slaves 175 Notes 179 Ancient Greek authors (Perseus Digital Library) 181 Modern authors 182 Chapter 6 The Financial Institutions of the Athenian Economy 189 6.1 Banking Services and Maritime Loans 189 6.2 The Athenian Bankers 193 6.2.1 The Argyramoiboi (Money Changers) 195 6.2.2 The Development of Insurance, Securities and Mortgages 195 6.3 The Establishment of Primitive Joint-stock Companies 197 6.3.1 Joint-stock Companies in the Banking Sector 197 6.3.2 Joint-stock Companies in Other Relative Areas 202 6.4 The Institutional Mechanisms for Financing State Needs 204 6.4.1. The Demosion Fund (Demosion) 204 6.4.2 The Treasury of Delos or Allied Fund (AF) 207 6.4.3 The Treasuries – Temples of Athena (TTA) and the Other Gods (TTGs) 209 6.4.4 The Opisthodomos of the Parthenon 211 6.4.5. Public Borrowing from International Banks and from Individual Private Investors 215 Notes 216 Ancient Greek authors (Perseus Digital Library) 217 Modern authors 218 Chapter 7 The Role of Money in the Economy 222 7.1 The Adoption of Currency in the Greek World as a Means of Conducting the Exchange of Goods and Services 222 7.2 The Mining Procedures in Classical Athens and the Athenian Mint 230 7.3 Money Decentralization under Direct Democracy Procedures in Decision-making 237 7.4 Nicophon’s Law 240 7.5. Coin-testing Techniques 246 7.6 The Coinage Decree and the Athenian Attempts to Create an Ad Hoc Monetary Union in the Eastern Mediterranean 249 7.7. The Issue of Inflation 255 Notes 256 Ancient Greek authors (Perseus Digital Library) 257 Modern authors 258 Chapter 8 The Athenian Public Sector and State Budget 263 8.1 The Athenian Public Administration and Its Magistrates 263 8.2. Public Magistrates Collecting Funds as Public Revenues and the Board of Poletai 266 8.3. The Theorikon and the Stratiotikon Funds 269 8.4. Public Magistrates with Judicial and Secretarial Duties 271 8.5. Providing Various Types of Public Services: Water Management, Defense and Religious Festivals 272 8.6. The Supervisory Boards of Public Administration 274 8.7. State Auditing Institutions to Ensure Good Governance in the Public Sector 275 8.7.1. The Euthyna Procedure 276 8.7.2. Auditing Institutions to Ensure Good Governance in the Public Sector through Private Initiative 279 8.8 How the Athenian State Budget Was Determined 280 8.8.1 Managing the State Budget: The Merismos and the Tamias Tes Koines Prosodou 287 8.9 The Athenian Taxation System 290 8.9.1 The Eisphora Tax 290 8.9.2 The Liturgies 291 8.9.3 A Comment on the Fairness of the Athenian System of Taxation 293 Notes 295 Ancient Greek authors (Perseus Digital Library) 295 Modern authors 296 Chapter 9 Economic Growth Policies in Classical Athens 300 9.1 Estimating the Athenian GDP and GDP Growth 300 9.2 Six Important Elements for Economic Growth in Classical Athens 302 9.2.1 Large-scale Public works: The Fiscal Expansionary Programs of Pericles, Eubulus and Lycurgus 302 9.2.2 Population Growth 308 9.2.3 Life Expectancy 309 9.2.4 Better Housing Conditions 310 9.2.5 Urbanization 312 9.2.6 Technological Innovations 312 Notes 313 Ancient Greek authors (Perseus Digital Library) 313 Modern authors 314 Chapter 10 Social Welfare Policies through the Provision of Public Goods 317 10.1 The Provision of Public Goods by the Athenian State 317 10.1.1 The Offices Regarding Public Administration 318 10.1.2 Police Services 318 10.1.3 Ensuring an Effective Water Supply System 318 10.1.4 The Existence of a Functional Street and Road Network 319 10.1.5 Urban Spaces, Recreation and Beautification of the Athenian Polis 320 10.1.6 Measurement of Time as a Public Good 321 10.2 Public–Private Partnerships for the Provision of Public Goods 321 10.2.1 Defense 321 10.2.2 Diplomatic Missions 324 10.2.3 Hygiene Services 324 10.2.4 Health Care 325 10.2.5 Education 326 10.2.6 Athletic Infrastructure 328 10.2.7 Entertainment and Education on Moral Values 329 10.2.8 Religious Festivals 329 10.3 The Provision of Publicly Provided Private Goods: Social Security for Disabled Persons 330 Notes 332 Ancient Greek authors (Perseus Digital Library) 332 Modern authors 333 Chapter 11 Epilogue: The Athenian City-state Culture: Economy, Freedom, Democracy and the Rule of Law 336 Notes 346 Ancient Greek authors (Perseus Digital Library) 346 Modern authors 347 Glossary 350 Index 359 Classical,Athens;,Public,sector;,Economic,policy;,The,social,groups;,Economic,organisation;,Free,market,economy,institutions;,Athenian,philosophers;,Financial,institutions;,Public,goods;,Role,of,money;,Social,welfare,policies Classical Athens,Public sector,Economic policy,The social groups,Economic organisation,Free market economy institutions,Athenian philosophers,Financial institutions,Public goods,Role of money,Social welfare policies