Working Paper: NBER ID: w22724
Authors: Sebastian Galiani; Gustavo Torrens
Abstract: Why did the most prosperous colonies in the British Empire mount a rebellion? Even more puzzling, why didn’t the British agree to have American representation in Parliament and quickly settle the dispute peacefully? At first glance, it would appear that a deal could have been reached to share the costs of the global public goods provided by the Empire in exchange for more political autonomy and/or formal representation for the colonies. (At least, this was the view of men of the time such as Lord Chapman, Thomas Pownall and Adam Smith.) We argue, however, that the incumbent government in Great Britain, controlled by the landed gentry, feared that giving political concessions to the colonies would undermine the position of the dominant coalition, strengthen the incipient democratic movement, and intensify social pressures for the reform of a political system based on land ownership. In particular, allowing Americans to be represented in Parliament was problematic because American elites could not credibly commit to refuse to form a coalition with the British opposition. Consequently, the only realistic options were to maintain the original colonial status or fight a full-scale war of independence.
Keywords: No keywords provided
JEL Codes: D74; N41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| American colonies rebelled (F54) | British government grants representation (H11) |
| British government grants representation (H11) | destabilizes political balance within metropolis (D59) |
| destabilizes political balance within metropolis (D59) | fears of coalition between American representatives and opposition (D72) |
| fears of coalition between American representatives and opposition (D72) | threatens political system based on land ownership (P26) |
| British government reluctance to grant representation (D72) | fears of coalition with opposition (D74) |
| political concessions (D72) | empower colonies and intensify demands for democratic reforms (F54) |
| low likelihood of colonies winning independence (F54) | high costs of fighting (H56) |
| colonial regime becomes unsustainable (F54) | series of rebellions culminating in independence or political incorporation (F54) |