urban economics


Urban political structures and the historical roots of wealth inequality

The evolution of wealth inequality is driven in part by past political structures. This column presents a case study from Germany, focusing on the history of the southern city-state, Nördlingen. The results of the study highlight how past political elites were able to exploit extreme moments of crisis, such as wars and epidemics, to enrich themselves, driving up wealth inequality. In fact, the extent to which a region had an oligarchic political structure transpires to be a clear driver of wealth inequality trends, today as in the past.