Measuring exceptional growth? A reappraisal of the Athenian economy in the 4th century BC

Thesis

This thesis interrogates two interlocked approaches that lie at the forefront of our current understanding of the Classical Athenian economy. The qualitative insights of New Institutional Economics, a paradigm that evaluates economies’ development transhistorically through market formation, transaction costs, and institutional safeguards, are joined by quantitative measurements of performance. Together, they dovetail to present an influential picture of 4th century Athens as a vibrant economy, resembling modern frameworks in its organization and undergoing an efflorescence rarely achieved by pre-industrial societies. The thesis probes both the conclusions and premises of this portrait, claiming that its explanatory power is low.

On the quantitative side, the use of statistical models to discern Athenian inequality, wages, and other indicators of living standards is beset by manifold problems regarding the data’s construction. The thesis maintains that numbers are less open to scrutiny by fellow ancient historians, yet they frequently suffer from cognitive fallacies, misleading conclusions, and poor proxy data without requisite uncertainties. It is then demonstrated that even when accepting the premises of a modernist, institutionally-driven Athenian economy, the data purporting to measure its unusually-high performance is itself driven by the hypothesis it is supposed to verify. A revised consumption basket—the first metric of its kind to be constructed specifically for the Athenian household—illustrates that both Athenian consumption needs and incomes were low, and provides more robust figures for subsistence household production.

The Athenians subsisted within their means without being destitute; there is little support for economic growth or unusual development. On the qualitative side, much progress has been made by scholars who deployed New Institutional Economics to reveal complex market participation and a dynamic economy. The thesis acknowledges the advances made by the ‘formalist’ side of a longstanding debate about the nature of ancient economies, but offers the argument that a neo-substantivist viewpoint has superior explanatory power in ascertaining the nature of Athenian economic activity. Rather than a formal structure that behaved in rational, modern-equivalent ways, the Athenian economy was frequently subject to exogenous shocks and subordinate to non-economic concerns about political stability, individual social relations, and even ethical considerations. The thesis does not backpedal to previous stances in the formalist-substantivist debate, but considers new nuances of co-existence—including the very real role of divinities as economic agents. Neither growth nor measurement has much of a place in the Athenian economy of the 4th century, which exhibited features recognizable to modern economists yet more often remained alien and characterized by unquantifiable actors and intents.

Authors: Nitu, S

• DOI: 10.5287/ora-wrappgzag
• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: University of Oxford
• Language: English
• Keywords: Athenian economy; new institutional economics; historical methodology; economic history; cliometrics
• Subjects: History; Economic development; History, Ancient