Traditional economic analysis posits market-based institutions as being substitutes for non-market based institutions.
The process of development then tends to be seen as the process of substituting the more efficient market based institutions for
their less efficient counterparts. This paper argues that non-market institutions are at times more efficient than market based
institutions. Informal pooling arrangements constituted an important method of non-market consumption smoothing for medieval
peasants. Usury prohibitions were promulgated in order to support such arrangements in the face of competition from more
market-based alternatives, i.e., the capital market.
Bekar, C. Income Sharing Amongst Medieval Peasants: Usury Prohibitions and the Non-Market Provision of Insurance. In: Microbehavior and Macroresults:Proceedings of the Tenth Biennial Conference of the International Institute ofFisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA.Compiled by Richard S. Johnston and Ann L. Shriver. InternationalInstitute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.