Theoretical Implications of Regional Effects

Abstract

Local economic institutions (systems of property rights and rules of land use) influenced the course of economic change in European history, as well as state formation and religious change. In this paper, I outline the theoretical implications of these regional effects. None of our existing macrolevel theories and explanations of the “rise of the West” can adequately incorporate them, so I present an alternative theory, based on rational choice premises. Yet the existence of these regional effects also highlights the deficiencies of a rational choice theoretical approach. First, the approach is unable to explain historical contexts, institutional legacies, or the effects of timing, which were vital for outcomes of social change but that lie outside the model itself. Second, although it can be very useful, the model of the actor motivated by material self-interest often proved inadequate in historical situations. Solutions are suggested.