THE eND OF hISTORY:

We use the impact of the Dissolution of the English monasteries in 1535 to test the commercialization hypothesis about the roots of long-run English economic development. Before the Dissolution, monastic lands were relatively unencumbered by inefficient feudal land tenure, but could not be sold. The Dissolution created a market for formerly monastic lands, which could now be more effectively commercialized relative to nonmonastic lands, where feudal tenure persisted until the 20th century. We show that parishes impacted by the Dissolution subsequently experienced a 'rise of the Gentry', had higher innovation and yields in agriculture, a greater share of the population working outside of agriculture, and ultimately higher levels of industrialization. Our results are consistent with explanations of the Agricultural and Industrial Revolutions which emphasize the commercialization of society as a key precondition for taking advantage of technological change and new economic opportunities.

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