Livorno and Political Economy in the Late Renaissance

Chapter 1 examines the theoretical tools and institutional framework that the grand dukes had at their disposal when planning Livorno. Although contemporary theories of reason of state authorized a range of interventions in economic life, the regime lacked organizations for analyzing, evaluating, and implementing economic policy. Policy was a function of ambitions formulated at the center and unforeseen institutional dynamics at the periphery. This chapter begins by contextualizing the reform of 1566, which endowed Livorno with its own customs regime (largely a consolidation of prior arrangements). It then turns to examine late Renaissance theories of economic development. It concludes by examining the privileges of Livorno, focusing on merchant hospitality and the Medici effort to induce Jews to settle in Livorno.