Local Farmers and Fairness

Our second to last destination brought us to a small farm near the city of Sorento.  Compared to the nearby city of Naples, the farm was a quieter and more picturesque destination.  While we were there, we stayed in multi-person rooms on the property.  Although we had many issues with cold rooms and the water heaters, the space ended up being great.  Also, the ride up may have made some queazy, but the views were specacular.  

One of the great features of the farm we stayed at, was the fact that it produced local products.  It grew lemons, oranges, grapes and olives.  We always got to have a bit of the local tastes for breakfast or dinner.  Never have I tasted such fresh foods.  The idea of local farmers fits in nicely with the article Zach and I had to read.  Our article was titled Fairness, Farmers Markets, and Local Production.  Basically the article brought up the idea of organic, local, and non-GMO farming.  Fitting in very closely to our stay at the farm.  

With the article, it basically looks into whether people think inequality is considered when shopping for local products either at a farmers market or at a grocery store.  The authors state that people are adverse to advantageous inequality and disadvantageous inequality.  Basically the idea that we like to avoid inequality of wealth positive or negative.  

The study was performed in an Oklahoma town.  Basically the participants had to bid over four tickets.  The tickets represented tickets to local farmers and non-local farmers and also advantageous and disadvantageous inequality.  The experiment facilitators then created a secret price.  The secret price determined whether the participants won the bid.  This encouraged the participants to bid the highest to more accurately determine what they would actually bid.  

The results for this experiment were actually quite interesting.  Most of the people surveyed had shopped at a farmers market.  For those who shopped at farmers markets, they did so mostly for food quality and to support the local community.  one of the more interesting facts dealt with inequality.  From the results, the authors find that "people shopping at farmers markets were no more or less concerned about inequality of local farmers than were people shopping at a traditional grocery store."  That fact was actually quite surprising to me.  I'm guessing that the community that the experiment took place in was agriculturally focused.  With that being said, I bet the participants knew a local farmer or were interested in their sucess.  My guess is if you asked a person in a New York City grocery store about their concern for local farmers, they would have less concern than that of a person shopping at a farmers market.  I think It all depends where the question is asked.  Overall it was a very interesting study. 

On our way from Orvieto to Rome this afternoon, we stopped to explore the ancient ruins of the roman city Ostia, just 30 minutes or so out of Rome. Our article for today was an examination of the various options for accommodation in the city of Ostia throughout 3rd century B.C, a time when a large majority of the population lived in rented apartments. Unlike most housing markets that we are accustomed to today, the rental market was left to run its course without any significant governmental interference or regulation. Often today we see things such as rental price ceilings in large cities, subsidies for housing mortgage markets, or government owned housing, however this was not the case in Ostia. Instead, the government felt very little need to interfere in the housing market and only provided public housing in the case of extreme catastrophe.

There were essentially two options available, Cenacula, or apartment suites, and Deversoria which were essentially just rooms available for rent. The apartment suites were much like an apartment complex as we know it today. Landlords leased out each individual apartment within their suite and leasers were legally allowed to sublease rooms from their apartments to subletters. While walking around the ruins of the city, we were able to see lots of areas where such large apartment buildings existed. Though of course they were only partially there, it was cool to see their prevalence and strategic placement throughout the city. The Cenacula option was marketed more towards wealthier individuals or families because the lease agreements tended to be long, rent was expensive and payments were expected after periods of six months, instead of at the beginning as we now see today. This system relied heavily on the relationship between the landlord and his tenant as there was a fair amount of both risk and trust involved for the landlord with the contract.

            The second type of housing, Deversoria, housed more poor and lower class people and referred more generally to accommodations such as mezzanines, one or two bedroom flats, or the backrooms of the ground-floor shops in which people worked. The contract terms are less known, however because poorer people were less likely to be able to hold long leases and pay large lump sums of rent every six months, their contracts were probably much shorter. Further, often the landlord marketed his large building to an array of people, sometimes offering temporary rooms for travelers (like hotel rooms) or cheap, run down areas for more long term use. Rent was generally paid on a per night basis and for those who chose more decent quarters experienced a large increase in rent.  

            As you can imagine, this system led to an extremely inefficient rental market in Ostia. The rich paid more than they should have to compensate for the risk resulting from the longevity of their contracts, while ironically the poor also paid more because of the shortness of their contracts and the increased uncertainty and risk involved with renting to them. We found this to be interesting because often times, when governments do step in and begin to regulate or interfere in the market, it leads to inefficiencies as well. Particularly in the housing market, we can see shortages in the market as well as some “black market” activities in regards to rental properties. This forced us to wonder if there really is a right answer when inefficiency arises both with and without government intervention.

Marriage: A Loveless Look at Dowries

While touring Tuscany and enjoying the rich culture found there we have had many opportunities to examine the culture of today and how it relates to the culture of the 14^th and 15^th century. I was quite surprised to find out that dowries were common place until only a few decades ago. I was selected to present the ideas of an article examining dowries and the various ideas surrounding them.

 Dowries are sums of wealth transferred from the family of a bride to the family of the groom upon marriage. These transactions play a very substantial role in 15^th century Italy, as they represent significant (nearly nine times the average annual salary) movement of economic power between families often to a family of a lower class than the bride. In the 15^th century every single woman was expected to have dowry. Examples were given that there were public funds generated by wealthy persons leaving a portion of wealth to be used as dowries for orphans. A family would even be expected to have a dowry set aside for women who entered convents to become nuns. Dowries are interesting also because while the transfer of wealth is from one family to another at the time of marriage the bride retains ownership of the dowry even if her father in law is expected to manage it.

This paper looked at dowries in two different but related ways. The first from a net value perspective. The second is from an altruistic perspective.

From a net value standpoint the entire marriage arrangement was based on the value of a woman as compared to her expected benefit to the married household during her expected lifetime which essentially broke down to the older she is the less productive she will be. Thus the older a woman the larger her dowry would have to be to compensate for lost productivity in the marriage household. This creates a very strong pressure to marry young because the longer she lives with the parents the more she costs the parents (both in living expenses and a larger dowry) and the harder it is for her to find a “suitable” husband

This pressure in addition to a general shortage of women and a very small percentage of the population holding a large percentage of the country’s wealth leads women to often “marry down” selecting a man who would not necessarily be of the same social, political or financial status.

In the altruistic model the parents of the bride, caring about the future of their daughter, would provide a larger dowry proportional to how far she “married down” in order to ensure that the newly married couple would be able to get established and enjoy the same standard of living that the woman was used to but may be impossible for a lower class husband to provide.

Now there were many problems with this study the largest of which is that it had a relatively small sample size consisting primarily of the upper class. The data collected by this study was from census data and compared against often illegible marriage contracts. The author expressed a desire to examine the archives in Florence where a larger more complete collection of census data exists in order to gain a better understanding of the role that dowries played in early Italian economics 

An Economic Analysis of the Protestant Reformation

The 8^th and final article that Sydney and I presented on is titled “An Economic Analysis of the Protestant Reformation.” It talked about a lot of things, but the first half mainly dealt with the sale of indulgences. The Medieval Roman Church modified doctrine to permit the monetary sale of forgiveness of sins, which was key for spiritual redemption. This was what the members were really purchasing from the church. It was very interesting to walk through the Vatican and see where a lot of that money went. There was a lot of incredible artwork and sculptures that would not have been cheap, and I would not have thought about where that money came from without the article. We were really able to see the immense wealth that church gained during this time, in large part due to the sale of indulgences.

It discussed the use of price discrimination, and how stable wealth dispersion and tight knit communities would help them set the indulgences prices. When cultures were pretty rural and family based, the church would know how much a person makes, and therefore how much they could charge for their product. They also used the idea of purgatory to convince members to buy indulgences for relatives that had passed, which would result in less time in “limbo” between earth and heaven.

It then started its main test, which was trying to create a link between the countries stance on primogeniture and the probability of converting to Protestantism during the reformation. Primogeniture is the act of leaving everything you own (most of the time land) to your first born son when you die. This is unfortunate if you do not have a son or if you are the second born son. The basis of this link was that people would be willing to pay a high price for indulgences if they could assure all of their children’s futures (ex. they could work in the church), but if your country did not practice primogeniture, you could already practice the freedom of dispersing your wealth as you pleased when you passed, so you would not be willing to pay a high price for indulgences, because there was a cheaper and very similar product (Protestantism).

Their second test tried to create an inverse link between the growing urban societies and the practice of primogeniture. They tried to do this because it would create a link between urban societies and conversion to Protestantism. They argued that a son’s inherited wealth was no longer measured by land, because there were more industries to work in and less land per person, primogeniture was less likely to occur, and therefore conversion would be more common. They also argued that in those societies, there was less reliance on the church to help them in legal areas, and more reliance on the community as a whole.

It is really interesting to walk around Rome and see all of the old (many of them Catholic) buildings. It is strange to think about where the money to build those came from, and how the immoral actions of the Catholic Church helped fund some of the best known religious buildings and art we have today. It is also really interesting to think about how much they still make from those buildings, with a line of hundreds of people to get into the Vatican museum during January to see that great art, and at least 7 gift shops throughout the tour.

Olive Oil Production Throughout Italy

Olive oil has always been a very prominent aspect of Italian culture. Olive oil production can’t just be done anywhere. The climate is a huge factor that can make or break a batch of olives. Italy has an ideal climate that is made for making olives and olive oil. Italy ranks 2^nd in the world for olive oil production (behind Spain) and in the last 4 years Italy has produced an outstanding 550,000 tons of olive oil. While they may be producing massive quantities, Italy is the worlds top consumer of olive oil so they are still importing these goods from other countries as well. 

There are three different production areas in Italy: Southern/Insular, Central Southern, and Central Northern. Southern Insular is the largest production area because it has the optimal climate conditions to obtain high yields of oil. This area includes Sicily to give you an idea of where this extraction occurs. Southern areas can produce the highest quality of olive oil, whereas Northern areas have an environment that changes so frequently that it is not ideal for olive oil extraction.

We had the opportunity to see an old oil press and learned a little about how olive oil was produced centuries ago. You can find the photo below of what this press looked like. It was run with donkeys that circled around the machine in order to get the press working. As of late, olive oil production has started to become more technologically savvy. This is extremely vital to keeping up with our ever changing environment. You won’t see olive presses like this one anymore.

As we toured a farm in Sorrento we were also able to see how newer technology is changing the olive industry. Below you'll see a photo of the nets that this farm used to "catch/pick" their olives. Olive oil is almost like wine here. We did a taste-test of olive oil as well and learned how there are a wide variety of oil tastes. The tasting has helped me understand and appreciate olive oil production a lot more.
-Amy Wooten

Economics of Religion- The Vatican

After a long day adventuring through the Vatican, enjoying a change in pace of meals with some Asian cooking, and some interesting historical insight provided by Professor Wurm, a game of cards over drinks with friends before a night of excitement and music was certainly called for. Monday night in Rome during the middle of winter might not be the most exciting time, but when you're nearing the end of a long trip abroad with a group of newly founds friends there isn't nearly enough time in the world.

Though there was an absurdly beautiful level of detail at the Vatican, I was taken off guard by some of my assumptions going into the city. The museum was much more of a traditional museum than I had anticipated, and although everything was either owned in the Pope's collection or was a part of the Vatican itself, I wasn't expecting the outing to be as much of tourist trap as it was. The Sistine Chapel was underwhelming, though I believe this was because of the lack of lighting. Where I had expected a large dome fresco of God reaching to Adam I found a naturally lit chamber filled with tourists and security that ranted the gospel of 'No Photos'. Economically this makes sense, as if I was unable to take photos then I would be more likely to purchase a keepsake photo of the painting. However, that rule has yet to stop me, and many photos were captured. 

To quickly rescue from some of the group's unimpressed sentiment, we arrived at the Church of St. Peter. Entering the building that required on tickets was refreshing, and with such immense size and history many jaws dropped. Though I do believe that the rest of the Vatican City that is closed off to the public would remedy some of the feeling of disappointment, the cathedral certainly was the cure.

Tomorrow we wake early again and attend a site of more brutal Roman history- The Colosseum.   

Patterns in Medieval Trade:The Commerce of Amalfi Before the Crusades

The Amalfi coast was a commercial powerhouse and major center for global trade during the eighth to 11th century, before the Norman conquest. The article that Amy and I read, called "Patterns in Medieval Trade:The Commerce of Amalfi Before the Crusades" by Armand Citarella, focused on the trade between the Amalfitan merchants and the Arabs in the markets of North Africa during this time period.

Trade in Amalfi was based on a triangular pattern, according to Citarella. Wheat, timber, linen and agricultural goods from southern Italy were exported to North Africa in exchange for oil, wax and gold from Tunisia and oriental spices and gold from Egypt. Since the beginning of the ninth century, Amalfitans have had significant influence on the commerce in southern Italy, as well as global political power for maintaining strong relations with the Arabs and the Byzantine empire. Grain, timber, linen cloth and agricultural products such as fruits, nuts and wine were the main exports of Amalfi, which were produced in other areas of southern Italy and then shipped from the Amalfitan ports.

The reason that the Amalfitans were so successful in trading with the Arabs was that there were consistent markets in North Africa for the products of southern Italy. Grain was of high importance to the Arabs due to the famine conditions in North Africa and the inability to grow crops consistently. Timber was another major export from Amalfi because the Arabs did not have access to a reliable supply of timber: the dry, arid climate did not lend itself to timber production well. High quality linen and cloth materials from Naples and Cava were also highly valued in the markets of North Africa, to the extent that the city of Naples was referred to as "the city of linen cloth." The last major export from Amalfi that the author mentions are agricultural products; specifically wines, seasonal fruits, and nuts like hazelnuts, walnuts and chestnuts. These products were in high enough demand in the North African markets that the agricultural industry was revived in the cities of Naples, Capua, Benevento, Caserta and Salerno.

Since the Amalfitans traded so heavily with the Arabs, it makes sense that they would adopt certain cultural elements from the Arabs. Citarella alludes to the adoption of Arabian currency in Amalfi during the peak of this trade empire. This seems quite sensible since the Amalfitans were doing a large amount of their business transactions in Arabian currency and thus had considerable local circulation of that currency.

In addition to the adoption of Arabian currency, the influence of Arabian architecture is also apparent in Amalfi still today. On our hike along the Amalfi coast, called "The Gods' Footpath," I noticed that the buildings that freckled the steep hillsides looked slightly different than some of the other coastal towns we have visited. The materials used for roofing and the stucco on the facades of some buildings were atypical of other towns, and the architecture in general was slightly less uniform, suggesting that external influences had affected the construction of the town.

Unfortunately, in 1343, Amalfi faced a tragic storm that destroyed much of the harbor and its ports. The strong trade industry that the region had built was never able to recover, and thus had to resort to other industries to keep the economy afloat. Similar to many other towns in Italy, tourism has become the main industry dominating Amalfi.

Even though much of the historical trade industry has disappeared from Italy, traces of the historic culture can still be found and appreciated. This is the case in many of the tourist towns of Italy, and it is difficult to maintain cultural heritage as well as inform tourists of said heritage. However, learning about the cultural and historical significance of a location can make for a much richer experience as a tourist. I am incredibly thankful that I have been able to learn so much about not only the economy in Italy, but also the rich and varied history of the country and will look back on this trip with very fond memories.