Econometrica, Vol. 78, No. 6 (November, 2010), 1863–1903 THE PERSISTENT EFFECTS OF PERU'S MINING MITA BY MELISSA DELL1 This study utilizes regression discontinuity to examine the long-run impacts of the mita, an extensive forced mining labor system in effect in Peru and Bolivia between 1573 and 1812. Results indicate that a mita effect lowers household consumption by around 25% and increases the prevalence of stunted growth in children by around 6 percentage points in subjected districts today. Using data from the Spanish Empire and Peruvian Republic to trace channels of institutional persistence, I show that the mita's in?uence has persisted through its impacts on land tenure and public goods provision. Mita districts historically had fewer large landowners and lower educational attainment. Today, they are less integrated into road networks and their residents are substantially more likely to be subsistence farmers. KEYWORDS: Forced labor, land tenure, public goods. 1. INTRODUCTION THE ROLE OF HISTORICAL INSTITUTIONS in explaining contemporary underde- velopment has generated signi?cant debate in recent years.2 Studies ?nd quan- titative support for an impact of history on current economic outcomes (Nunn (2008), Glaeser and Shleifer (2002), Acemoglu, Johnson, and Robinson (2001, 2002), Hall and Jones (1999)), but have not focused on channels of persistence. Existing empirical evidence offers little guidance in distinguishing a variety of potential mechanisms, such as property rights enforcement, inequality, ethnic fractionalization, barriers to entry, and public goods. This paper uses variation in the assignment of an historical institution in Peru to identify land tenure and public goods as channels through which its effects persist. Speci?cally, I examine the long-run impacts of the mining mita, a forced labor system instituted by the Spanish government in Peru and Bolivia in 1573 and abolished in 1812. The mita required over 200 indigenous communities to send one-seventh of their adult male population to work in the Potosí silver and Huancavelica mercury mines (Figure 1). The contribution of mita conscripts changed discretely at the boundary of the subjected region: on one side, all communities sent the same percentage of their population, while on the other side, all communities were exempt. 1 I am grateful to Daron Acemoglu, Bob Allen, Josh Angrist, Abhijit Banerjee, John Coatsworth, David Cook, Knick Harley, Austin Huang, Nils Jacobsen, Alan Manning, Ben Olken, James Robinson, Peter Temin, Gary Urton, Heidi Williams, Jeff Williamson, and seminar partici- pants at City University of Hong Kong, Chinese University of Hong Kong, Harvard, MIT, Oxford, Stanford Institute of Theoretical Economics, and Warwick for helpful comments and suggestions. I also thank Javier Escobal and Jennifer Jaw for assistance in accessing data. Research funding was provided by the George Webb Medley Fund (Oxford University). 2 See, for example, Coatsworth (2005), Glaeser et al. (2004), Easterly and Levine (2003), Ace- moglu, Johnson, and Robinson (2001, 2002), Sachs (2001), and Engerman and Sokoloff (1997). ? 2010 The Econometric Society DOI: 10.3982/ECTA8121 1864 MELISSA DELL FIGURE 1.—The mita boundary is in black and the study boundary in light gray. Districts falling inside the contiguous area formed by the mita boundary contributed to the mita. Elevation is shown in the background. This discrete change suggests a regression discontinuity (RD) approach for evaluating the long-term effects of the mita, with the mita boundary forming a multidimensional discontinuity in longitude–latitude space. Because valid- ity of the RD design requires all relevant factors besides treatment to vary smoothly at the mita boundary, I focus exclusively on the portion that transects the Andean range in southern Peru. Much of the boundary tightly follows the steep Andean precipice, and hence has elevation and the ethnic distribution of the population changing discretely at the boundary. In contrast, elevation, the ethnic distribution, and other observables are statistically identical across the segment of the boundary on which this study focuses. Moreover, speci?cation checks using detailed census data on local tribute (tax) rates, the allocation of tribute revenue, and demography—collected just prior to the mita's institution in 1573—do not ?nd differences across this segment. The multidimensional nature of the discontinuity raises interesting and important questions about how to specify the RD polynomial, which will be explored in detail. Using the RD approach and household survey data, I estimate that a long- run mita effect lowers equivalent household consumption by around 25% in PERSISTENT EFFECTS OF MITA 1865 subjected districts today. Although the household survey provides little power for estimating relatively ?exible models, the magnitude of the estimated mita effect is robust to a number of alternative speci?cations. Moreover, data from a national height census of school children provide robust evidence that the mita's persistent impact increases childhood stunting by around 6 percent- age points in subjected districts today. These baseline results support the well known hypothesis that extractive historical institutions in?uence long-run eco- nomic prosperity (Acemoglu, Johnson, and Robinson (2002)). More gener- ally, they provide microeconomic evidence consistent with studies establishing a relationship between historical institutions and contemporary economic out- comes using aggregate data (Nunn (2008), Banerjee and Iyer (2005), Glaeser and Shleifer (2002)). After examining contemporary living standards, I use data from the Spanish Empire and Peruvian Republic, combined with the RD approach, to investi- gate channels of persistence. Although a number of channels may be relevant, to provide a parsimonious yet informative picture, I focus on three that the historical literature and ?eldwork highlight as important. First, using district- level data collected in 1689, I document that haciendas—rural estates with an attached labor force—developed primarily outside the mita catchment. At the time of the mita's enactment, a landed elite had not yet formed. To min- imize the competition the state faced in accessing scarce mita labor, colonial policy restricted the formation of haciendas in mita districts, promoting com- munal land tenure instead (Garrett (2005), Larson (1988)). The mita's effect on hacienda concentration remained negative and signi?cant in 1940. Second, econometric evidence indicates that a mita effect lowered education histori- cally, and today mita districts remain less integrated into road networks. Fi- nally, data from the most recent agricultural census provide evidence that a long-run mita impact increases the prevalence of subsistence farming. Based on the quantitative and historical evidence, I hypothesize that the long-term presence of large landowners in non-mita districts provided a sta- ble land tenure system that encouraged public goods provision. The property rights of large landowners remained secure from the 17th century onward. In contrast, the Peruvian government abolished the communal land tenure that had predominated in mita districts soon after the mita ended, but did not replace it with a system of enforceable peasant titling (Jacobsen (1993), Dancuart and Rodriguez (1902, Vol. 2, p. 136)). As a result, extensive con?sca- tion of peasant lands, numerous responding peasant rebellions as well as ban- ditry and livestock rustling were concentrated in mita districts during the late 19th and 20th centuries (Jacobsen (1993), Bustamante Otero (1987, pp. 126– 130), Flores Galindo (1987, p. 240), Ramos Zambrano (1984, pp. 29–34)). Be- cause established landowners in non-mita districts enjoyed more secure title to their property, it is probable that they received higher returns from investing in public goods. Moreover, historical evidence indicates that well established landowners possessed the political connections required to secure public goods 1866 MELISSA DELL (Stein (1980)). For example, the hacienda elite lobbied successfully for roads, obtaining government funds for engineering expertise and equipment, and or- ganizing labor provided by local citizens and hacienda peons (Stein (1980, p. 59)). These roads remain and allow small-scale agricultural producers to access markets today, although haciendas were subdivided in the 1970s. The positive association between historical haciendas and contemporary economic development contrasts with the well known hypothesis that histor- ically high land inequality is the fundamental cause of Latin America's poor long-run growth performance (Engerman and Sokoloff (1997)). Engerman and Sokoloff argued that high historical inequality lowered subsequent invest- ments in public goods, leading to worse outcomes in areas of the Americas that developed high land inequality during the colonial period. This theory's implicit counterfactual to large landowners is secure, enfranchised smallhold- ers of the sort that predominated in some parts of North America. This is not an appropriate counterfactual for Peru or many other places in Latin Amer- ica, because institutional structures largely in place before the formation of the landed elite did not provide secure property rights, protection from exploita- tion, or a host of other guarantees to potential smallholders.3 The evidence in this study indicates that large landowners—while they did not aim to promote economic prosperity for the masses—did shield individuals from exploitation by a highly extractive state and ensure public goods. Thus, it is unclear whether the Peruvian masses would have been better off if initial land inequality had been lower, and it is doubtful that initial land inequality is the most useful foun- dation for a theory of long-run growth. Rather, the Peruvian example suggests that exploring constraints on how the state can be used to shape economic in- teractions, for example, the extent to which elites can employ state machinery to coerce labor or citizens can use state guarantees to protect their property, could provide a particularly useful starting point for modeling Latin America's long-run growth trajectory. In the next section, I provide an overview of the mita. Section 3 discusses identi?cation and tests whether the mita affects contemporary living standards. Section 4 examines channels empirically. Finally, Section 5 offers concluding remarks. 2. THE MINING MITA 2.1. Historical Introduction The Potosí mines, discovered in 1545, contained the largest deposits of silver in the Spanish Empire, and the state-owned Huancavelica mines provided the 3 This argument is consistent with evidence on long-run inequality from other Latin Ameri- can countries, notably Acemoglu et al. (2008) on Cundinamarca and Colombia and Coatsworth (2005) on Mexico. PERSISTENT EFFECTS OF MITA 1867 mercury required to re?ne silver ore. Beginning in 1573, indigenous villages lo- cated within a contiguous region were required to provide one-seventh of their adult male population as rotating mita laborers to Potosí or Huancavelica, and the region subjected remained constant from 1578 onward.4 The mita assigned 14,181 conscripts from southern Peru and Bolivia to Potosí and 3280 conscripts from central and southern Peru to Huancavelica (Bakewell (1984, p. 83)).5 Us- ing population estimates from the early 17th century (Cook (1981)), I calculate that around 3% of adult males living within the current boundaries of Peru were conscripted to the mita at a given point in time. The percentage of males who at some point participated was considerably higher, as men in subjected districts were supposed to serve once every 7 years.6 Local native elites were responsible for collecting conscripts, delivering them to the mines, and ensuring that they reported for mine duties (Cole (1985, p. 15), Bakewell (1984)). If community leaders were unable to provide their allotment of conscripts, they were required to pay in silver the sum needed to hire wage laborers instead. Historical evidence suggests that this rule was strictly enforced (Garrett (2005, p. 126), Cole (1985, p. 44), Zavala (1980), Sanchez-Albornoz (1978)). Some communities did commonly meet mita oblig- ations through payment in silver, particularly those in present-day Bolivia who had relatively easy access to coinage due to their proximity to Potosí (Cole (1985)). Detailed records of mita contributions from the 17th, 18th, and early 19th centuries indicate that communities in the region that this paper exam- ines contributed primarily in people (Tandeter (1993, pp. 56, 66), Zavala (1980, Vol. II, pp. 67–70)). This is corroborated by population data collected in a 1689 parish census (Villanueva Urteaga (1982)), described in the Supplemental Ma- terial (Dell (2010)), which shows that the male–female ratio was 22% lower in mita districts (a difference signi?cant at the 1% level).7 4 The term mita was ?rst used by the Incas to describe the system of labor obligations, pri- marily in local agriculture, that supported the Inca state (D'Altoy (2002, p. 266), Rowe (1946, pp. 267–269)). While the Spanish coopted this phrase, historical evidence strongly supports in- dependent assignment. Centrally, the Inca m'ita required every married adult male in the Inca Empire (besides leaders of large communities), spanning an area far more extensive than the region I examine, to provide several months of labor services for the state each year (D'Altoy (2002, p. 266), Cieza de León (1551)). 5 Individuals could attempt to escape mita service by ?eeing their communities, and a number pursued this strategy (Wightman (1990)). Yet ?eeing had costs: giving up access to land, com- munity, and family; facing severe punishment if caught; and either paying additional taxes in the destination location as a "foreigner" (forastero) or attaching oneself to a hacienda. 6 Mita districts contain 17% of the Peruvian population today (Instituto Nacional de Estadística e Información de Perú (INEI) (1993)). 7 While colonial observers highlighted the deleterious effects of the mita on demography and well-being in subjected communities, there are some features that could have promoted relatively better outcomes. For example, mita conscripts sold locally produced goods in Potosí, generating trade linkages. 1868 MELISSA DELL With silver deposits depleted, the mita was abolished in 1812, after nearly 240 years of operation. Sections 3 and 4 discuss historical and empirical evi- dence showing divergent histories of mita and non-mita districts. 2.2. The Mita's Assignment Why did Spanish authorities require only a portion of districts in Peru to con- tribute to the mita and how did they determine which districts to subject? The aim of the Crown was to revive silver production to levels attained using free la- bor in the 1550s, before epidemic disease had substantially reduced labor sup- ply and increased wages. Yet coercing labor imposed costs: administrative and enforcement costs, compensation to conscripts for traveling as much as 1000 kilometers (km) each way to and from the mines, and the risk of decimating Peru's indigenous population, as had occurred in earlier Spanish mining ven- tures in the Caribbean (Tandeter (1993, p. 61), Cole (1985, pp. 3, 31), Ca?ete (1794), Levillier (1921, Vol. 4, p. 108)). To establish the minimum number of conscripts needed to revive production to 1550s levels, Viceroy Francisco Toledo commissioned a detailed inventory of mines and production processes in Potosí and elsewhere in 1571 (Bakewell (1984, pp. 76–78), Levillier (1921, Vol. 4)). These numbers were used, together with census data collected in the early 1570s, to enumerate the mita assignments. The limit that the mita subject no more than one-seventh of a community's adult male population at a given time was already an established rule that regulated local labor drafts in Peru (Glave (1989)). Together with estimates of the required number of conscripts, this rule roughly determined what fraction of Andean Peru's districts would need to be subjected to the mita. Historical documents and scholarship reveal two criteria used to assign the mita: distance to the mines at Potosí and Huancavelica and elevation. Impor- tant costs of administering the mita, such as travel wages and enforcement costs, were increasing in distance to the mines (Tandeter (1993, p. 60), Cole (1985, p. 31)). Moreover, Spanish of?cials believed that only highland peo- ples could survive intensive physical labor in the mines, located at over 4000 meters (13,000 feet) (Golte (1980)). The geographic extent of the mita is con- sistent with the application of these two criteria, as can be seen in Figure 1.8 This study focuses on the portion of the mita boundary that transects the An- dean range, which this ?gure highlights in white, and the districts along this portion are termed the study region (see Supplemental Material Figure A1 for a detailed view). Here, exempt districts were those located farthest from 8 An elevation constraint was binding along the eastern and western mita boundaries, which tightly follow the steep Andean precipice. The southern Potosí mita boundary was also con- strained, by the border between Peru and the Viceroyalty of Rio de la Plata (Argentina), and by the geographic divide between agricultural lands and an uninhabitable salt ?at. PERSISTENT EFFECTS OF MITA 1869 the mining centers given road networks at the time (Hyslop (1984)).9 While historical documents do not mention additional criteria, concerns remain that other underlying characteristics may have in?uenced mita assignment. This will be examined further in Section 3.2. 3. THE MITA AND LONG-RUN DEVELOPMENT 3.1. Data I examine the mita's long-run impact on economic development by testing whether it affects living standards today. A list of districts subjected to the mita is obtained from Saignes (1984) and Amat y Junient (1947) and matched to modern districts as detailed in the Supplemental Material, Table A.I. Peru- vian districts are in most cases small political units that consist of a population center (the district capital) and its surrounding countryside. Mita assignment varies at the district level. I measure living standards using two independent data sets, both georef- erenced to the district. Household consumption data are taken from the 2001 Peruvian National Household Survey (Encuesta Nacional de Hogares (ENAHO)) collected by the National Institute of Statistics (INEI). To con- struct a measure of household consumption that re?ects productive capac- ity, I subtract the transfers received by the household from total household consumption and normalize to Lima metropolitan prices using the de?ation factor provided in ENAHO. I also utilize a microcensus data set, obtained from the Ministry of Education, that records the heights of all 6- to 9-year- old school children in the region. Following international standards, children whose heights are more than 2 standard deviations below their age-speci?c me- dian are classi?ed as stunted, with the medians and standard deviations calcu- lated by the World Health Organization from an international reference pop- ulation. Because stunting is related to malnutrition, to the extent that living standards are lower in mita districts, we would also expect stunting to be more common there. The height census has the advantage of providing substantially 9 This discussion suggests that exempt districts were those located relatively far from both Po- tosí and Huancavelica. The correlation between distance to Potosí and distance to Huancavelica is ?0.996, making it impossible to separately identify the effect of distance to each mine on the probability of receiving treatment. Thus, I divide the sample into two groups—municipalities to the east and those to the west of the dividing line between the Potosí and Huancavelica mita catchment areas. When considering districts to the west (Potosí side) of the dividing line, a ?exi- ble speci?cation of mita treatment on a cubic in distance to Potosí, a cubic in elevation, and their linear interaction shows that being 100 additional kilometers from Potosí lowers the probability of treatment by 0.873, with a standard error of 0.244. Being 100 meters higher increases the prob- ability of treatment by 0.061, with a standard error of 0.027. When looking at districts to the east (Huancavelica side) of the dividing line and using an analogous speci?cation with a polynomial in distance to Huancavelica, the marginal effect of distance to Huancavelica is negative but not statistically signi?cant. 1870 MELISSA DELL more observations from about four times more districts than the household consumption sample. While the height census includes only children enrolled in school, 2005 data on primary school enrollment and completion rates do not show statistically signi?cant differences across the mita boundary, with primary school enrollment rates exceeding 95% throughout the region examined (Min- istro de Educación del Perú (MINEDU) (2005b)). Finally, to obtain controls for exogenous geographic characteristics, I calculate the mean area weighted elevation of each district by overlaying a map of Peruvian districts on 30 arc second (1 km) resolution elevation data produced by NASA's Shuttle Radar Topography Mission (SRTM (National Aeronautics and Space Administration and the National Geospatial-Intelligence Agency) (2000)), and I employ a sim- ilar procedure to obtain each district's mean area weighted slope. The Supple- mental Material contains more detailed information about these data and the living standards data, as well as the data examined in Section 4. 3.2. Estimation Framework Mita treatment is a deterministic and discontinuous function of known co- variates, longitude and latitude, which suggests estimating the mita's impacts using a regression discontinuity approach. The mita boundary forms a multi- dimensional discontinuity in longitude–latitude space, which differs from the single-dimensional thresholds typically examined in RD applications. While the identifying assumptions are identical to those in a single-dimensional RD, the multidimensional discontinuity raises interesting and important method- ological issues about how to specify the RD polynomial, as discussed below. Before considering this and other identi?cation issues in detail, let us intro- duce the basic regression form: cidb = α + γmitad + Xidβ + f(geographic locationd) + φb + εidb (1) where cidb is the outcome variable of interest for observation i in district d along segment b of the mita boundary, and mitad is an indicator equal to 1 if district d contributed to the mita and equal to 0 otherwise; Xid is a vec- tor of covariates that includes the mean area weighted elevation and slope for district d and (in regressions with equivalent household consumption on the left-hand side) demographic variables giving the number of infants, children, and adults in the household; f(geographic locationd) is the RD polynomial, which controls for smooth functions of geographic location. Various forms will be explored. Finally, φb is a set of boundary segment ?xed effects that denote which of four equal length segments of the boundary is the closest to the ob- servation's district capital.10 To be conservative, all analysis excludes metropol- itan Cusco. Metropolitan Cusco is composed of seven non-mita and two mita 10 Results (available upon request) are robust to allowing the running variable to have hetero- geneous effects by including a full set of interactions between the boundary segment ?xed effects PERSISTENT EFFECTS OF MITA 1871 districts located along the mita boundary and was the capital of the Inca Em- pire (Cook (1981, pp. 212–214), Cieza de León (1959, pp. 144–148)). I exclude Cusco because part of its relative prosperity today likely relates to its pre-mita heritage as the Inca capital. When Cusco is included, the impacts of the mita are estimated to be even larger. The RD approach used in this paper requires two identifying assumptions. First, all relevant factors besides treatment must vary smoothly at the mita boundary. That is, letting c1 and c0 denote potential outcomes under treatment and control, x denote longitude, and y denote latitude, identi?cation requires that E[c1|x y] and E[c0|x y] are continuous at the discontinuity threshold. This assumption is needed for individuals located just outside the mita catch- ment to be an appropriate counterfactual for those located just inside it. To assess the plausibility of this assumption, I examine the following potentially important characteristics: elevation, terrain ruggedness, soil fertility, rainfall, ethnicity, preexisting settlement patterns, local 1572 tribute (tax) rates, and allocation of 1572 tribute revenues. To examine elevation—the principal determinant of climate and crop choice in Peru—as well as terrain ruggedness, I divide the study region into 20*20 km grid cells, approximately equal to the mean size of the districts in my sam- ple, and calculate the mean elevation and slope within each grid cell using the SRTM data.11 These geographic data are spatially correlated, and hence I report standard errors corrected for spatial correlation in square brackets. Following Conley (1999), I allow for spatial dependence of an unknown form. For comparison, I report robust standard errors in parentheses. The ?rst set of columns of Table I restricts the sample to fall within 100 km of the mita bound- ary; the second, third, and fourth sets of columns restrict it to fall within 75, 50, and 25 km, respectively. The ?rst row shows that elevation is statistically identical across the mita boundary.12 I next look at terrain ruggedness, using the SRTM data to calculate the mean uphill slope in each grid cell. In con- trast to elevation, there are some statistically signi?cant, but relatively small, differences in slope, with mita districts being less rugged.13 and f(geographic locationd). They are also robust to including soil type indicators, which I do not include in the main speci?cation because they are highly collinear with the longitude–latitude polynomial used for one speci?cation of f(geographic locationd). 11 All results are similar if the district is used as the unit of observation instead of using grid cells. 12 Elevation remains identical across the mita boundary if I restrict the sample to inhabitable areas (<4800 m) or weight by population, rural population, or urban population data (Center for International Earth Science Information (2004, SEDAC)). 13 I also examined data on district soil quality and rainfall (results available upon request; see the data appendix in the Supplemental Materials for more details). Data from the Peruvian Insti- tuto Nacional de Recursos Naturales (INRENA (1997)) reveal higher soil quality in mita districts. I do not emphasize soil quality because it is endogenous to land usage. While climate is exoge- nous, high resolution data are not available and interpolated climate estimates are notoriously 1872 MELISSA DELL TABLE I SUMMARY STATISTICSa Sample Falls Within <100 km of Mita Boundary <75 km of Mita Boundary <50 km of Mita Boundary <25 km of Mita Boundary Inside Outside s.e. Inside Outside s.e. Inside Outside s.e. Inside Outside s.e. GIS Measures Elevation 4042 4018 [188 77] 4085 4103 [166 92] 4117 4096 [169 45] 4135 4060 [146 16] (85 54) (82 75) (89 61) (115 15) Slope 5 54 7 21 [0 88]* 5 75 7 02 [0 86] 5 87 6 95 [0 95] 5 77 7 21 [0 90] (0 49)*** (0 52)** (0 58)* (0 79)* Observations 177 95 144 86 104 73 48 52 % Indigenous 63 59 58 84 [11 19] 71 00 64 55 [8 04] 71 01 64 54 [8 42] 74 47 63 35 [10 87] (9 76) (8 14) (8 43) (10 52) Observations 1112 366 831 330 683 330 329 251 Log 1572 tribute rate 1 57 1 60 [0 04] 1 57 1 60 [0 04] 1 58 1 61 [0 05] 1 65 1 61 [0 02]* (0 03) (0 03) (0 04) (0 03) (Continues) PERSISTENT EFFECTS OF MITA 1873 TABLE I—Continued Sample Falls Within <100 km of Mita Boundary <75 km of Mita Boundary <50 km of Mita Boundary <25 km of Mita Boundary Inside Outside s.e. Inside Outside s.e. Inside Outside s.e. Inside Outside s.e. % 1572 tribute to Spanish Nobility 59 80 63 82 [1 39]*** 59 98 63 69 [1 56]** 62 01 63 07 [1 12] 61 01 63 17 [1 58] (1 36)*** (1 53)** (1 34) (2 21) Spanish Priests 21 05 19 10 [0 90]** 21 90 19 45 [1 02]** 20 59 19 93 [0 76] 21 45 19 98 [1 01] (0 94)** (1 02)** (0 92) (1 33) Spanish Justices 13 36 12 58 [0 53] 13 31 12 46 [0 65] 12 81 12 48 [0 43] 13 06 12 37 [0 56] (0 48)* (0 60) (0 55) (0 79) Indigenous Mayors 5 67 4 40 [0 78] 4 55 4 29 [0 26] 4 42 4 47 [0 34] 4 48 4 42 [0 29] (0 85) (0 29) (0 33) (0 39) Observations 63 41 47 37 35 30 18 24 aThe unit of observation is 20 * 20 km grid cells for the geospatial measures, the household for % indigenous, and the district for the 1572 tribute data. Conley standard errors for the difference in means between mita and non-mita observations are in brackets. Robust standard errors for the difference in means are in parentheses. For % indigenous, the robust standard errors are corrected for clustering at the district level. The geospatial measures are calculated using elevation data at 30 arc second (1 km) resolution (SRTM (2000)). The unit of measure for elevation is 1000 meters and for slope is degrees. A household is indigenous if its members primarily speak an indigenous language in the home (ENAHO (2001)). The tribute data are taken from Miranda (1583). In the ?rst three columns, the sample includes only observations located less than 100 km from the mita boundary, and this threshold is reduced to 75, 50, and ?nally 25 km in the succeeding columns. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. 1874 MELISSA DELL The third row examines ethnicity using data from the 2001 Peruvian Na- tional Household Survey (ENAHO). A household is de?ned as indigenous if the primary language spoken in the household is an indigenous language (usu- ally Quechua). Results show no statistically signi?cant differences in ethnic identi?cation across the mita boundary. Spanish authorities could have based mita assignment on settlement pat- terns, instituting the mita in densely populated areas and claiming land for themselves in sparsely inhabited regions where it was easier to usurp. A de- tailed review by Bauer and Covey (2002) of all archaeological surveys in the region surrounding the Cusco basin, covering much of the study region, indi- cates no large differences in settlement density at the date of Spanish Con- quest. Moreover, there is no evidence suggesting differential rates of popula- tion decline in the 40 years between conquest and enactment of the mita (Cook (1981, pp. 108–114)). Spanish of?cials blamed demographic collapse on excessive, unregulated rates of tribute extraction by local Hispanic elites (encomenderos), who re- ceived the right to collect tribute from the indigenous population in return for their role in Peru's military conquests. Thus Viceroy Francisco Toledo co- ordinated an in-depth inspection of Peru, Bolivia, and Ecuador in the early 1570s to evaluate the maximum tribute that could be demanded from local groups without threatening subsistence. Based on their assessment of ability to pay, authorities assigned varying tribute obligations at the level of the district socioeconomic group, with each district containing one or two socioeconomic groups. (See the Supplemental Material for more details on the tribute assess- ment.) These per capita contributions, preserved for all districts in the study region, provide a measure of Spanish authorities' best estimates of local pros- perity. The forth row of Table I shows average tribute contributions per adult male (women, children, and those over age 50 were not taxed). Simple means comparisons across the mita boundary do not ?nd statistically signi?cant dif- ferences. The ?fth through eight examine district level data on how Spanish authorities allocated these tribute revenues, divided between rents for Span- ish nobility (encomenderos, ?th row), salaries for Spanish priests (sixth row), salaries for local Spanish administrators (justicias, seventh row), and salaries for indigenous mayors (caciques, eigth row). The data on tribute revenue al- location are informative about the ?nancing of local government, about the inaccurate for the mountainous region examined in this study (Hijmans et al. (2005)). Tempera- ture is primarily determined by altitude (Golte (1980), Pulgar-Vidal (1950)), and thus is unlikely to differ substantially across the mita boundary. To examine precipitation, I use station data from the Global Historical Climatology Network, Version 2 (Peterson and Vose (1997)). Using all available data (from stations in 50 districts located within 100 km of the mita boundary), mita districts appear to receive somewhat higher average annual precipitation, and these differences disappear when comparing districts closer to the mita boundary. When using only stations with at least 20 years of data (to ensure a long-run average), which provides observations from 20 dif- ferent stations (11 outside the mita catchment and 9 inside), the difference declines somewhat in magnitude and is not statistically signi?cant. PERSISTENT EFFECTS OF MITA 1875 extent to which Spain extracted local revenues, and about the relative power of competing local administrators to obtain tribute revenues. Table I reveals some modest differences: when the sample is limited to fall within 100 km or 75 km from the mita boundary, we see that Spanish nobility received a slightly lower share of tribute revenue inside the mita catchment than outside (60% versus 64%), whereas Spanish priests received a slightly higher share (21% versus 19%). All differences disappear as the sample is limited to fall closer to the mita boundary. In the ideal RD setup, the treatment effect is identi?ed using only the varia- tion at the discontinuity. Nonparametric RD techniques can be applied to ap- proximate this setup in contexts with a large number of observations very near the treatment threshold (Imbens and Lemieux (2008)). While nonparametric techniques have the advantage of not relying on functional form assumptions, the data requirements that they pose are particularly high in the geographic RD context, as a convincing nonparametric RD would probably require pre- cise georeferencing: for example, each observation's longitude–latitude coor- dinates or address.14 This information is rarely made available due to con?den- tiality restrictions, and none of the available Peruvian micro data sets contains it. Moreover, many of the data sets required to investigate the mita's potential long-run effects do not provide suf?ciently large sample sizes to employ non- parametric techniques. Thus, I use a semiparametric RD approach that limits the sample to districts within 50 km of the mita boundary. This approach iden- ti?es causal effects by using a regression model to distinguish the treatment indicator, which is a nonlinear and discontinuous function of longitude (x) and latitude (y), from the smooth effects of geographic location. It is important for the regression model to approximate these effects well, so that a nonlinearity in the counterfactual conditional mean function E[c0|x y] is not mistaken for a discontinuity, or vice versa (Angrist and Pischke (2009)). To the best of my knowledge, this is the ?rst study to utilize a multidimensional, semiparametric RD approach. Because approaches to specifying a multidimensional RD polynomial have not been widely explored, I report estimates from three baseline speci?cations of f(geographic locationd). The ?rst approach uses a cubic polynomial in lati- tude and longitude.15 This parametrization is relatively ?exible; it is analogous to the standard single-dimensional RD approach; and the RD plots, drawn in "x–y outcome" space, allow a transparent visual assessment of the data. 14 A notable example of a multidimensional nonparametric RD is Black's (1999) study of the value that parents place on school quality. Black compared housing prices on either side of school attendance district boundaries in Massachusetts. Because she employs a large and precisely geo- referenced data set, Black was able to include many boundary segment ?xed effects and limit the sample to observations located within 0.15 miles of the boundary, ensuring comparison of observations in extremely close proximity. 15 Letting x denote longitude and y denote latitude, this polynomial is x + y + x2 + y2 + xy + x3 + y3 + x2 y + xy2 . 1876 MELISSA DELL For these reasons, this approach appears preferable to projecting the running variable into a lower-dimensional space—as I do in the other two baseline speci?cations—when power permits its precise estimation. One drawback is that some of the necessary datasets do not provide enough power to precisely estimate this ?exible speci?cation. The multidimensional RD polynomial also increases concerns about over?tting at the discontinuity, as a given order of a multidimensional polynomial has more degrees of freedom than the same order one-dimensional polynomial. This point is discussed using a concrete ex- ample in Section 4.3. Finally, there is no a priori reason why a polynomial form will do a good job of modeling the interactions between longitude and latitude. I partially address this concern by examining robustness to different orders of RD polynomials. Given these concerns, I also report two baseline speci?cations that project geographic location into a single dimension. These single-dimensional speci- ?cations can be precisely estimated across the paper's data sets and provide useful checks on the multidimensional RD. One controls for a cubic polyno- mial in Euclidean distance to Potosí, a dimension which historical evidence identi?es as particularly important. During much of the colonial period, Potosí was the largest city in the Western Hemisphere and one of the largest in the world, with a population exceeding 200,000. Historical studies document dis- tance to Potosí as an important determinant of local production and trading activities, and access to coinage (Tandeter (1993, p. 56), Glave (1989), Cole (1985)).16 Thus, a polynomial in distance to Potosí is likely to capture vari- ation in relevant unobservables. However, this approach does not map well into the traditional RD setup, although it is similar in controlling for smooth variation and requiring all factors to change smoothly at the boundary. Thus I also examine a speci?cation that controls for a cubic polynomial in distance to the mita boundary. I report this speci?cation because it is similar to tradi- tional one-dimensional RD designs, but to the best of my knowledge neither historical nor qualitative evidence suggests that distance to the mita boundary is economically important. Thus, this speci?cation is most informative when examined in conjunction with the other two. In addition to the two identifying assumptions already discussed, an addi- tional assumption often employed in RD is no selective sorting across the treat- ment threshold. This would be violated if a direct mita effect provoked sub- stantial out-migration of relatively productive individuals, leading to a larger indirect effect. Because this assumption may not be fully reasonable, I do not emphasize it. Rather I explore the possibility of migration as an interesting channel of persistence, to the extent that the data permit. During the past 130 years, migration appears to have been low. Data from the 1876, 1940, 16 Potosí traded extensively with the surrounding region, given that it was located in a desert 14,000 feet above sea level and that it supported one of the world's largest urban populations during the colonial period. PERSISTENT EFFECTS OF MITA 1877 and 1993 population censuses show a district level population correlation of 0.87 between 1940 and 1993 for both mita and non-mita districts.17 Similarly, the population correlation between 1876 and 1940 is 0.80 in mita districts and 0.85 in non-mita districts. While a constant aggregate population distribution does not preclude extensive sorting, this is unlikely given the relatively closed nature of indigenous communities and the stable linkages between haciendas and their attached peasantry (Morner (1978)). Moreover, the 1993 Popula- tion Census (INEI (1993)) does not show statistically signi?cant differences in rates of out-migration between mita and non-mita districts, although the rate of in-migration is 4.8% higher outside the mita catchment. In considering why individuals do not arbitrage income differences between mita and non-mita dis- tricts, it is useful to note that over half of the population in the region I examine lives in formally recognized indigenous communities. It tends to be dif?cult to gain membership and land in a different indigenous community, making large cities—which have various disamenities—the primary feasible destination for most migrants (INEI (1993)). In contrast, out-migration from mita districts during the period that the mita was in force may have been substantial. Both Spanish authorities and indige- nous leaders of mita communities had incentives to prevent migration, which made it harder for local leaders to meet mita quotas that were ?xed in the medium run and threatened the mita's feasibility in the longer run. Spanish au- thorities required individuals to reside in the communities to which the colo- nial state had assigned their ancestors soon after Peru's conquest to receive citizenship and access to agricultural land. Indigenous community leaders at- tempted to forcibly restrict migration. Despite these efforts, the state's capacity to restrict migration was limited, and 17th century population data—available for 15 mita and 14 non-mita districts—provide evidence consistent with the hypothesis that individuals migrated disproportionately from mita to non-mita districts.18 To the extent that ?ight was selective and certain cognitive skills, physical strength, or other relevant characteristics are highly heritable, so that initial differences could persist over several hundred years, historical migra- tion could contribute to the estimated mita effect. The paucity of data and complex patterns of heritability that would link historically selective migration to the present unfortunately place further investigation substantially beyond the scope of the current paper. I begin by estimating the mita's impact on living standards today; see Ta- ble II. First, I test for a mita effect on household consumption, using the log of equivalent household consumption, net transfers, in 2001 as the dependent variable. Following Deaton (1997), I assume that children aged 0 to 4 are equal 17 The 2005 Population Census was methodologically ?awed and thus I use 1993. 18 According to data from the 1689 Cusco parish reports (see the Supplemental Material), in the 14 non-mita districts, 52.5% of individuals had ancestors who had not been assigned to their current district of residence, as compared to 35% in the 15 mita districts. 1878 MELISSA DELL TABLE II LIVING STANDARDSa Dependent Variable Log Equiv. Hausehold Consumption (2001) Stunted Growth, Children 6–9 (2005) Sample Within: <100 km <75 km <50 km <100 km <75 km <50 km Border of Bound. of Bound. of Bound. of Bound. of Bound. of Bound. District (1) (2) (3) (4) (5) (6) (7) Panel A. Cubic Polynomial in Latitude and Longitude Mita ?0 284 ?0 216 ?0 331 0 070 0 084* 0 087* 0 114** (0 198) (0 207) (0 219) (0 043) (0 046) (0 048) (0 049) R2 0 060 0 060 0 069 0 051 0 020 0 017 0 050 Panel B. Cubic Polynomial in Distance to Potosí Mita ?0 337*** ?0 307*** ?0 329*** 0 080*** 0 078*** 0 078*** 0 063* (0 087) (0 101) (0 096) (0 021) (0 022) (0 024) (0 032) R2 0 046 0 036 0 047 0 049 0 017 0 013 0 047 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita ?0 277*** ?0 230** ?0 224** 0 073*** 0 061*** 0 064*** 0 055* (0 078) (0 089) (0 092) (0 023) (0 022) (0 023) (0 030) R2 0 044 0 042 0 040 0 040 0 015 0 013 0 043 Geo. controls yes yes yes yes yes yes yes Boundary F.E.s yes yes yes yes yes yes yes Clusters 71 60 52 289 239 185 63 Observations 1478 1161 1013 158,848 115,761 100,446 37,421 aThe unit of observation is the household in columns 1–3 and the individual in columns 4–7. Robust standard errors, adjusted for clustering by district, are in parentheses. The dependent variable is log equivalent household consumption (ENAHO (2001)) in columns 1–3, and a dummy equal to 1 if the child has stunted growth and equal to 0 otherwise in columns 4–7 (Ministro de Educación (2005a)). Mita is an indicator equal to 1 if the household's district contributed to the mita and equal to 0 otherwise (Saignes (1984), Amat y Juniet (1947, pp. 249, 284)). Panel A includes a cubic polynomial in the latitude and longitude of the observation's district capital, panel B includes a cubic polynomial in Euclidean distance from the observation's district capital to Potosí, and panel C includes a cubic polynomial in Euclidean distance to the nearest point on the mita boundary. All regressions include controls for elevation and slope, as well as boundary segment ?xed effects (F.E.s). Columns 1–3 include demographic controls for the number of infants, children, and adults in the household. In columns 1 and 4, the sample includes observations whose district capitals are located within 100 km of the mita boundary, and this threshold is reduced to 75 and 50 km in the succeeding columns. Column 7 includes only observations whose districts border the mita boundary. 78% of the observations are in mita districts in column 1, 71% in column 2, 68% in column 3, 78% in column 4, 71% in column 5, 68% in column 6, and 58% in column 7. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. PERSISTENT EFFECTS OF MITA 1879 to 0.4 adults and children aged 5 to 14 are equal to 0.5 adults. Panel A reports the speci?cation that includes a cubic polynomial in latitude and longitude, panel B reports the speci?cation that uses a cubic polynomial in distance to Potosí, and panel C reports the speci?cation that includes a cubic polynomial in distance to the mita boundary. Column 1 of Table II limits the sample to districts within 100 km of the mita boundary, and columns 2 and 3 restrict it to fall within 75 and 50 km, respectively.19 Columns 4–7 repeat this exercise, using as the dependent variable a dummy equal to 1 if the child's growth is stunted and equal to 0 otherwise. Column 4 limits the sample to districts within 100 km of the mita boundary, and columns 5 and 6 restrict it to fall within 75 and 50 km, respectively. Column 7 limits the sample to only those districts border- ing the mita boundary. In combination with the inclusion of boundary segment ?xed effects, this ensures that I am comparing observations in close geographic proximity. 3.3. Estimation Results Columns 1–3 of Table II estimate that a long-run mita effect lowers house- hold consumption in 2001 by around 25% in subjected districts. The point es- timates remain fairly stable as the sample is restricted to fall within narrower bands of the mita boundary. Moreover, the mita coef?cients are economically similar across the three speci?cations of the RD polynomial, and I am unable to reject that they are statistically identical. All of the mita coef?cients in pan- els B and C, which report the single-dimensional RD estimates, are statistically signi?cant at the 1% or 5% level. In contrast, the point estimates using a cubic polynomial in latitude and longitude (panel A) are not statistically signi?cant. This imprecision likely results from the relative ?exibility of the speci?cation, the small number of observations and clusters (the household survey samples only around one-quarter of districts), and measurement error in the dependent variable (Deaton (1997)). Columns 4–7 of Table II examine census data on stunting in children, an alternative measure of living standards which offers a substantially larger sam- ple. When using only observations in districts that border the mita boundary, point estimates of the mita effect on stunting range from 0.055 (s.e. = 0.030) to 0.114 (s.e. = 0.049) percentage points. This compares to a mean prevalence of stunting of 40% throughout the region examined.20 Of the 12 point estimates reported in Table II, 11 are statistically signi?cant, and I cannot reject at the 10% level that the estimates are the same across speci?cations. 19 The single-dimensional speci?cations produce similar estimates when the sample is limited to fall within 25 km of the mita boundary. The multidimensional speci?cation produces a very large and imprecisely estimated mita coef?cient because of the small sample size. 20 A similar picture emerges when I use height in centimeters as the dependent variable and include quarter * year of birth dummies, a gender dummy, and their interactions on the right- hand side. 1880 MELISSA DELL FIGURE 2.—Plots of various outcomes against longitude and latitude. See the text for a de- tailed description. The results can be seen graphically in Figure 2. Each sub?gure shows a district-level scatter plot for one of the paper's main outcome variables. These plots are the three-dimensional analogues to standard two-dimensional RD plots, with each district capital's longitude on the x axis, its latitude on the y axis, and the data value for that district shown using an evenly spaced mono- chromatic color scale, as described in the legends. When the underlying data are at the microlevel, I take district-level averages, and the size of the dot in- dicates the number of observations in each district. Importantly, the scaling on these dots, which is speci?ed in the legend, is nonlinear, as otherwise some would be microscopic and others too large to display. The background in each plot shows predicted values, for a ?nely spaced grid of longitude–latitude co- PERSISTENT EFFECTS OF MITA 1881 FIGURE 2.—Continued. ordinates, from a regression of the outcome variable under consideration on a cubic polynomial in longitude–latitude and the mita dummy. In the typical RD context, the predicted value plot is a two-dimensional curve, whereas here it is a three-dimensional surface, with the third dimension indicated by the color gradient.21 The shades of the data points can be compared to the shades of the predicted values behind them to judge whether the RD has done an adequate job of averaging the data across space. The majority of the population in the region is clustered along the upper segment of the mita boundary, giving these 21 Three-dimensional surface plots of the predicted values are shown in Figure A2 in the Sup- plemental Material, and contour plots are available upon request. 1882 MELISSA DELL TABLE III SPECIFICATION TESTSa Dependent Variable Log Equiv. Hausehold Consumption (2001) Stunted Growth, Children 6–9 (2005) Sample Within: <100 km <75 km <50 km <100 km <75 km <50 km Border of Bound. of Bound. of Bound. of Bound. of Bound. of Bound. District (1) (2) (3) (4) (5) (6) (7) Alternative Functional Forms for RD Polynomial: Baseline I Linear polynomial in latitude and longitude Mita ?0 294*** ?0 199 ?0 143 0 064*** 0 054** 0 062** 0 068** (0 092) (0 126) (0 128) (0 021) (0 022) (0 026) (0 031) Quadratic polynomial in latitude and longitude Mita ?0 151 ?0 247 ?0 361 0 073* 0 091** 0 106** 0 087** (0 189) (0 209) (0 216) (0 040) (0 043) (0 047) (0 041) Quartic polynomial in latitude and longitude Mita ?0 392* ?0 324 ?0 342 0 073 0 072 0 057 0 104** (0 225) (0 231) (0 260) (0 056) (0 050) (0 048) (0 042) Alternative Functional Forms for RD Polynomial: Baseline II Linear polynomial in distance to Potosí Mita ?0 297*** ?0 273*** ?0 220** 0 050** 0 048** 0 049** 0 071** (0 079) (0 093) (0 092) (0 022) (0 022) (0 024) (0 031) Quadratic polynomial in distance to Potosí Mita ?0 345*** ?0 262*** ?0 309*** 0 072*** 0 064*** 0 072*** 0 060* (0 086) (0 095) (0 100) (0 023) (0 022) (0 023) (0 032) Quartic polynomial in distance to Potosí Mita ?0 331*** ?0 310*** ?0 330*** 0 078*** 0 075*** 0 071*** 0 053* (0 086) (0 100) (0 097) (0 021) (0 020) (0 021) (0 031) Interacted linear polynomial in distance to Potosí Mita ?0 307*** ?0 280*** ?0 227** 0 051** 0 048** 0 043* 0 076*** (0 092) (0 094) (0 095) (0 022) (0 021) (0 022) (0 029) Interacted quadratic polynomial in distance to Potosí Mita ?0 264*** ?0 177* ?0 285** 0 033 0 027 0 039* 0 036 (0 087) (0 096) (0 111) (0 024) (0 023) (0 023) (0 024) (Continues) districts substantially more weight in ?gures showing predicted values from mi- crolevel regressions. Table III examines robustness to 14 different speci?cations of the RD poly- nomial, documenting mita effects on household consumption and stunting that are generally similar across speci?cations. The ?rst three rows report results from alternative speci?cations of the RD polynomial in longitude–latitude: lin- ear, quadratic, and quartic. The next ?ve rows report alternative speci?cations using distance to Potosí: linear, quadratic, quartic, and the mita dummy inter- PERSISTENT EFFECTS OF MITA 1883 TABLE III—Continued Dependent Variable Log Equiv. Hausehold Consumption (2001) Stunted Growth, Children 6–9 (2005) Sample Within: <100 km <75 km <50 km <100 km <75 km <50 km Border of Bound. of Bound. of Bound. of Bound. of Bound. of Bound. District (1) (2) (3) (4) (5) (6) (7) Alternative Functional Forms for RD Polynomial: Baseline III Linear polynomial in distance to mita boundary Mita ?0 299*** ?0 227** ?0 223** 0 072*** 0 060*** 0 058** 0 056* (0 082) (0 089) (0 091) (0 024) (0 022) (0 023) (0 032) Quadratic polynomial in distance to mita boundary Mita ?0 277*** ?0 227** ?0 224** 0 072*** 0 060*** 0 061*** 0 056* (0 078) (0 089) (0 092) (0 023) (0 022) (0 023) (0 030) Quartic polynomial in distance to mita boundary Mita ?0 251*** ?0 229** ?0 246*** 0 073*** 0 064*** 0 063*** 0 055* (0 078) (0 089) (0 088) (0 023) (0 022) (0 023) (0 030) Interacted linear polynomial in distance to mita boundary Mita ?0 301* ?0 277 ?0 385* 0 082 0 087 0 095 0 132** (0 174) (0 190) (0 210) (0 054) (0 055) (0 065) (0 053) Interacted quadratic polynomial in distance to mita boundary Mita ?0 351 ?0 505 ?0 295 0 140* 0 132 0 136 0 121* (0 260) (0 319) (0 366) (0 082) (0 084) (0 086) (0 064) Ordinary Least Squares Mita ?0 294*** ?0 288*** ?0 227** 0 057** 0 048* 0 049* 0 055* (0 083) (0 089) (0 090) (0 025) (0 024) (0 026) (0 031) Geo. controls yes yes yes yes yes yes yes Boundary F.E.s yes yes yes yes yes yes yes Clusters 71 60 52 289 239 185 63 Observations 1478 1161 1013 158,848 115,761 100,446 37,421 aRobust standard errors, adjusted for clustering by district, are in parentheses. All regressions include geographic controls and boundary segment ?xed effects (F.E.s). Columns 1–3 include demographic controls for the number of in- fants, children, and adults in the household. Coef?cients signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. acted with a linear or quadratic polynomial in distance to Potosí.22 Next, the ninth trough thirteenth rows examine robustness to the same set of speci?- cations, using distance to the mita boundary as the running variable. Finally, the fourteenth row reports estimates from a speci?cation using ordinary least squares. The mita effect on consumption is always statistically signi?cant in 22 The mita effect is evaluated at the mean distance to Potosí for observations very near (<10 km from) the mita boundary. Results are broadly robust to evaluating the mita effect at different average distances to Potosí, that is, for districts <25 km from the boundary, for border- ing districts, or for all districts. 1884 MELISSA DELL the relatively parsimonious speci?cations: those that use noninteracted, single- dimensional RD polynomials and ordinary least squares. In the more ?exible speci?cations—the longitude–latitude regressions and those that interact the RD polynomial with the mita dummy—the mita coef?cients in the consump- tion regression tend to be imprecisely estimated. As in Table II, the household survey does not provide enough power to precisely estimate relatively ?exible speci?cations, but the coef?cients are similar in magnitude to those estimated using a more parsimonious approach. Estimates of the mita's impact on stunt- ing are statistically signi?cant across most speci?cations and samples.23 Given broad robustness to functional form assumptions, Table IV reports a number of additional robustness checks using the three baseline speci?ca- tions of the RD polynomial. To conserve space, I report estimates only from the sample that contains districts within 50 km of the mita boundary. Columns 1–7 examine the household consumption data and columns 8–12 examine the stunting data. For comparison purposes, columns 1 and 8 present the base- line estimates from Table II. Column 2 adds a control for ethnicity, equal to 1 if an indigenous language is spoken in the household and 0 otherwise. Next, columns 3 and 9 include metropolitan Cusco. In response to the potential en- dogeneity of the mita to Inca landholding patterns, columns 4 and 10 exclude districts that contained Inca royal estates, which served sacred as opposed to productive purposes (Niles (1987, p. 13)). Similarly, columns 5 and 11 exclude districts falling along portions of the mita boundary formed by rivers to account for one way in which the boundary could be endogenous to geography. Col- umn 6 estimates consumption equivalence ?exibly, using log household con- sumption as the dependent variable, and controlling for the ratio of children to adults and the log of household size. In all cases, point estimates and sig- ni?cance levels tend to be similar to those in Table II. As expected, the point estimates are somewhat larger when metropolitan Cusco is included. Table IV investigates whether differential rates of migration today may be responsible for living standards differences between mita and non-mita dis- tricts. Given that in-migration in non-mita districts is about 4.8% higher than in mita districts (whereas rates of out-migration are statistically and economically similar), I omit the 4.8% of the non-mita sample with the highest equivalent household consumption and least stunting, respectively. Estimates in columns 7 and 12 remain of similar magnitude and statistical signi?cance, document- ing that migration today is not the primary force responsible for the mita ef- fect. If the RD speci?cation is estimating the mita's long-run effect as opposed to some other underlying difference, being inside the mita catchment should not affect economic prosperity, institutions, or demographics prior to the mita's enactment. In a series of speci?cation checks, I ?rst regress the log of the 23 Results (not shown) are also robust to including higher order polynomials in elevation and slope. PERSISTENT EFFECTS OF MITA 1885 TABLE IV ADDITIONAL SPECIFICATION TESTSa Log Equivalent Household Consumption (2001) Stunted Growth, Children 6–9 (2005) Excludes Excludes Excludes Portions of Flexible Excludes Portions of Districts Boundary Estimation Districts Boundary Control for Includes With Inca Formed by of Consump. Includes With Inca Formed by Baseline Ethnicity Cusco Estates Rivers Equivalence Migration Baseline Cusco Estates Rivers Migration (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Panel A. Cubic Polynomial in Latitude and Longitude Mita ?0 331 ?0 202 ?0 465** ?0 281 ?0 322 ?0 326 ?0 223 0 087* 0 147*** 0 093* 0 090* 0 069 (0 219) (0 157) (0 207) (0 265) (0 215) (0 230) (0 198) (0 048) (0 048) (0 048) (0 048) (0 049) R2 0 069 0 154 0 104 0 065 0 070 0 292 0 067 0 017 0 046 0 019 0 018 0 016 Panel B. Cubic Polynomial in Distance to Potosí Mita ?0 329*** ?0 282*** ?0 450*** ?0 354*** ?0 376*** ?0 328*** ?0 263*** 0 078*** 0 146*** 0 077*** 0 081*** 0 060** (0 096) (0 073) (0 096) (0 101) (0 114) (0 099) (0 095) (0 024) (0 030) (0 026) (0 024) (0 025) R2 0 047 0 140 0 087 0 036 0 049 0 275 0 042 0 013 0 039 0 014 0 013 0 012 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita ?0 224** ?0 195*** ?0 333*** ?0 255** ?0 217** ?0 224** ?0 161* 0 064*** 0 132*** 0 066*** 0 065*** 0 046* (0 092) (0 070) (0 087) (0 110) (0 098) (0 095) (0 088) (0 023) (0 027) (0 025) (0 023) (0 024) R2 0 040 0 135 0 088 0 047 0 039 0 270 0 037 0 013 0 042 0 014 0 013 0 012 Geo. controls yes yes yes yes yes yes yes yes yes yes yes yes Bound. F.E.s yes yes yes yes yes yes yes yes yes yes yes yes Clusters 52 52 57 47 51 52 52 185 195 180 183 185 Observations 1013 1013 1173 930 992 1013 997 100,446 127,259 96,440 99,940 98,922 aRobust standard errors, adjusted for clustering by district, are in parentheses. All regressions include soil type indicators and boundary segment ?xed effects (F.E.s). Columns 1–5 and 7 include demographic controls for the number of infants, children, and adults in the household. Column (6) includes controls for the log of household size and the ratio of children to household members, using the log of household consumption as the dependent variable. The samples include observations whose district capitals are less than 50 km from the mita boundary. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. 1886 MELISSA DELL mean district 1572 tribute contribution per adult male on the variables used in the stunting regressions in Table II. I then examine the shares of 1572 tribute revenues allocated to rents for Spanish nobility, salaries for Spanish priests, salaries for local Spanish administrators, and salaries for indigenous mayors. Finally, also using data from the 1572 census, I investigate demographics, with the population shares of tribute paying males (those aged 18–50), boys, and women as the dependent variables. These regressions, reported in Table V, do not show statistically signi?cant differences across the mita boundary, and the estimated mita coef?cients are small. TABLE V 1572 TRIBUTE AND POPULATIONa Dependent Variable Share of Tribute Revenues Percent Log Mean Spanish Spanish Spanish Indig. Tribute Nobility Priests Justices Mayors Men Boys Females (1) (2) (3) (4) (5) (6) (7) (8) Panel A. Cubic Polynomial in Latitude and Longitude Mita 0 020 ?0 010 0 004 0 004 0 003 ?0 006 0 011 ?0 009 (0 031) (0 030) (0 019) (0 010) (0 005) (0 009) (0 012) (0 016) R2 0 762 0 109 0 090 0 228 0 266 0 596 0 377 0 599 Panel B. Cubic Polynomial in Distance to Potosí Mita 0 019 ?0 013 0 008 0 006 ?0 001 ?0 012 0 005 ?0 011 (0 029) (0 025) (0 015) (0 009) (0 004) (0 008) (0 010) (0 012) R2 0 597 0 058 0 073 0 151 0 132 0 315 0 139 0 401 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita 0 040 ?0 009 0 005 0 003 ?0 001 ?0 011 0 001 ?0 008 (0 030) (0 018) (0 012) (0 006) (0 004) (0 007) (0 008) (0 010) R2 0 406 0 062 0 096 0 118 0 162 0 267 0 190 0 361 Geo. controls yes yes yes yes yes yes yes yes Boundary F.E.s yes yes yes yes yes yes yes yes Mean dep. var. 1.591 0.625 0.203 0.127 0.044 0.193 0.204 0.544 Observations 65 65 65 65 65 65 65 65 aThe dependent variable in column 1 is the log of the district's mean 1572 tribute rate (Miranda (1583)). In columns 2–5, it is the share of tribute revenue allocated to Spanish nobility (encomenderos), Spanish priests, Spanish justices, and indigenous mayors (caciques), respectively. In columns 6–8, it is the share of 1572 district population composed of males (aged 18–50), boys, and females (of all ages), respectively. Panel A includes a cubic polynomial in longitude and latitude, panel B includes a cubic polynomial in Euclidean distance from the observation's district capi- tal to Potosí, and panel C includes a cubic polynomial in Euclidean distance to the nearest point on the mita boundary. All regressions include geographic controls and boundary segment ?xed effects. The samples include districts whose capitals are less than 50 km from the mita boundary. Column 1 weights by the square root of the district's tributary population and columns 6–8 weight by the square root of the district's total population. 66% of the observations are from mita districts. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. PERSISTENT EFFECTS OF MITA 1887 To achieve credible identi?cation, I exploit variation across observations lo- cated near the mita boundary. If the boundary is an unusual place, these es- timates may have little external validity. To examine this issue further, I use ordinary least squares to estimate the correlation between the mita and the main outcome variables (including those that will be examined in Section 4), limiting the sample to districts located between 25 and 100 km from the mita boundary. The estimates are quite similar to those obtained from the RD spec- i?cations (results available upon request). Moreover, correlations between the mita and living standards (measured by both consumption and stunting) calcu- lated along the entire mita boundary within Peru are consistent in magnitude with the effects documented above.24 In summary, the RD evidence appears informative about the mita's overall impacts. Why would the mita affect economic prosperity nearly 200 years after its abolition? To open this black box, I turn to an investigation of channels of persistence. 4. CHANNELS OF PERSISTENCE This section uses data from the Spanish Empire and Peruvian Republic to test channels of persistence. There exist many potential channels, but to pro- vide a picture that is both parsimonious and informative, I focus on three that the historical literature and ?eldwork suggest are important: land tenure, pub- lic goods, and market participation. The results document that the mita limited the establishment of large landowners inside the mita catchment and, com- bined with historical evidence, suggest that land tenure has in turn affected public goods provision and smallholder participation in agricultural markets. The tables in the main text report three speci?cations, which use a cubic polynomial in latitude and longitude, a cubic polynomial in distance to Potosí, or a cubic polynomial in distance to the mita boundary. Table A.III in the Sup- plemental Material reports results from the 14 additional speci?cations exam- ined in Table III. In most cases, the point estimates across these speci?cations are similar. When not, I note it explicitly.25 4.1. Land Tenure and Labor Systems This section examines the impact of the mita on the formation of hacien- das—rural estates with an attached labor force permanently settled on the estate (Keith (1971, p. 437)). Critically, when authorities instituted the mita 24 When considering observations in Peru within 50 km of any point on the mita boundary, being inside the mita catchment is associated with 28.4 percent lower equivalent household con- sumption and an increase of 16.4 percentage points in the prevalence of stunting. 25 As in Table III, the more ?exible speci?cations in Table A.III are less likely than the parsi- monious ones to estimate statistically signi?cant effects. 1888 MELISSA DELL in 1573 (40 years after the Spanish conquest of Peru), a landed elite had not yet formed. At the time, Peru was parceled into encomiendas, pieces of ter- ritory in which appointed Spaniards exercised the right to collect tribute and labor services from the indigenous population but did not hold title to land (Keith (1971, p. 433)). Rivalries between encomenderos provoked civil wars in the years following Peru's conquest, and thus the Crown began to dismantle the encomienda system during the 1570s. This opened the possibility for ma- nipulating land tenure to promote other policy goals, in particular, the mita.26 Speci?cally, Spanish land tenure policy aimed to minimize the establishment of landed elites in mita districts, as large landowners—who unsurprisingly op- posed yielding their attached labor for a year of mita service—formed the state's principal labor market competition (Larson (1988), Sanchez-Albornoz (1978)).27 Centrally, as Bolivian historian Larson (1988, p. 171) concisely artic- ulated, "Haciendas secluded peasants from the extractive institutions of colo- nial society." Moreover, by protecting native access to agricultural lands, the state promoted the ability of the indigenous community to subsidize mita con- scripts, who were paid substantially below subsistence wages (Garrett (2005, p. 120), Tandeter (1993, pp. 58–60), Cole (1985, p. 31)). Similarly, authorities believed that protecting access to land could be an effective means of staving off demographic collapse (Larson (1982, p. 11), Cook (1981, pp. 108–114, 250), Morner (1978)). Finally, in return for ensuring the delivery of conscripts, local authorities were permitted to extract surplus that would have otherwise been claimed by large landowners (Garrett (2005, p. 115)). I now examine the concentration of haciendas in 1689, 1845, and 1940. The 1689 data are contained in parish reports commissioned by Bishop Manuel de Mollinedo and submitted by all parishes in the bishopric of Cusco, which en- compassed most of the study region. The reports list the number of haciendas and the population within each subdivision of the parish, and were compiled by Horacio Villanueva Urteaga (1982). For haciendas in 1845, I employ data collected by the Cusco regional government, which had jurisdiction over a sub- stantial fraction of the study region, on the percentage of the rural tributary population residing in haciendas (Peralta Ruiz (1991)). Data from 1845, 1846, and 1850 are combined to form the circa 1845 data set.28 Finally, data from the 1940 Peruvian Population Census are aggregated to the district level to calculate the percentage of the rural population residing in haciendas. 26 Throughout the colonial period, royal policy aimed to minimize the power of the (potentially revolutionary) landed class: landowners did not acquired the same political clout as mine owners, the most powerful colonial interest group (Tandeter (1993), Cole (1985)). 27 For example, land sales under Philip VI between 1634 and 1648 and by royal charter in 1654 played a central role in hacienda formation and were almost exclusively concentrated in non-mita districts (Brisseau (1981, p. 146), Glave and Remy (1978, p. 1)). 28 When data are available for more than one year, ?gures change little, and I use the earliest observation. PERSISTENT EFFECTS OF MITA 1889 TABLE VI LAND TENURE AND LABOR SYSTEMSa Dependent Variable Percent of Haciendas per Rural Tributary Percent of Rural 1000 District Population in Population in Haciendas per Residents Haciendas Haciendas Land Gini District in 1689 in 1689 in ca. 1845 in 1940 in 1994 (1) (2) (3) (4) (5) Panel A. Cubic Polynomial in Latitude and Longitude Mita ?12 683*** ?6 453** ?0 127* ?0 066 0 078 (3 221) (2 490) (0 067) (0 086) (0 053) R2 0 538 0 582 0 410 0 421 0 245 Panel B. Cubic Polynomial in Distance to Potosí Mita ?10 316*** ?7 570*** ?0 204** ?0 143*** 0 107*** (2 057) (1 478) (0 082) (0 051) (0 036) R2 0 494 0 514 0 308 0 346 0 194 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita ?11 336*** ?8 516*** ?0 212*** ?0 120*** 0 124*** (2 074) (1 665) (0 060) (0 045) (0 033) R2 0 494 0 497 0 316 0 336 0 226 Geo. controls yes yes yes yes yes Boundary F.E.s yes yes yes yes yes Mean dep. var. 6.500 5.336 0.135 0.263 0.783 Observations 74 74 81 119 181 aThe unit of observation is the district. Robust standard errors are in parentheses. The dependent variable in col- umn 1 is haciendas per district in 1689 and in column 2 is haciendas per 1000 district residents in 1689 (Villanueva Urteaga (1982)). In column 3 it is the percentage of the district's tributary population residing in haciendas ca. 1845 (Peralta Ruiz (1991)), in column 4 it is the percentage of the district's rural population residing in haciendas in 1940 (Dirección de Estadística del Perú (1944)), and in column 5 it is the district land gini (INEI (1994)). Panel A includes a cubic polynomial in the latitude and longitude of the observation's district capital, panel B includes a cubic polyno- mial in Euclidean distance from the observation's district capital to Potosí, and panel C includes a cubic polynomial in Euclidean distance to the nearest point on the mita boundary. All regressions include geographic controls and bound- ary segment ?xed effects. The samples include districts whose capitals are less than 50 km from the mita boundary. Column 3 is weighted by the square root of the district's rural tributary population and column 4 is weighted by the square root of the district's rural population. 58% of the observations are in mita districts in columns 1 and 2, 59% in column 3, 62% in column 4, and 66% in column 5. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. In Table VI, column 1 (number of haciendas per district) and column 2 (num- ber of haciendas per 1000 district residents) show a very large mita effect on the concentration of haciendas in the 17th century, of similar magnitude and highly signi?cant across speci?cations.29 The median coef?cient from column 1, con- 29 Given the mita's role in provoking population collapse (Wightman (1990, p. 72)), the latter measure is likely endogenous, but nevertheless provides a useful robustness check. 1890 MELISSA DELL tained in panel C, estimates that the mita lowered the number of haciendas in subjected districts by 11.3 (s.e. = 2 1), a sizeable effect given that on av- erage mita districts contained only one hacienda. Figure 2, panel (c) clearly demonstrates the discontinuity. Moreover, Table VI provides reasonably ro- bust support for a persistent impact. Column 3 estimates that the mita lowered the percentage of the rural tributary population in haciendas in 1845 by around 20 percentage points (with estimates ranging from 0.13 to 0.21), an effect that is statistically signi?cant across speci?cations. Column 4 suggests that dispari- ties persisted into the 20th century, with an estimated effect on the percentage of the rural labor force in haciendas that is somewhat smaller for 1940 than for 1845—as can be seen by comparing panels (d) and (e) of Figure 2—and not quite as robust. The median point estimate is ?0.12 (s.e. = 0.045) in panel C; the point estimates are statistically signi?cant at the 1% level in panels B and C, but the longitude–latitude speci?cation estimates an effect that is smaller, at ?0.07, and imprecise. Table VI also documents that the percentage of the rural population in ha- ciendas nearly doubled between 1845 and 1940, paralleling historical evidence for a rapid expansion of haciendas in the late 19th and early 20th centuries. This expansion was spurred by a large increase in land values due to globaliza- tion and seems to have been particularly coercive inside the mita catchment (Jacobsen (1993, pp. 226–237), Favre (1967, p. 243), Nu?ez (1913, p. 11)). No longer needing to ensure mita conscripts, Peru abolished the communal land tenure predominant in mita districts in 1821, but did not replace it with enforceable peasant titling (Jacobsen (1993), Dancuart and Rodriguez (1902, Vol. 2, p. 136)). This opened the door to tactics such as the interdicto de adquirir, a judicial procedure which allowed aspiring landowners to legally claim "aban- doned" lands that in reality belonged to peasants. Hacienda expansion also occurred through violence, with cattle nustling, grazing estate cattle on peas- ant lands, looting, and physical abuse used as strategies to intimidate peasants into signing bills of sale (Avila (1952, p. 22), Roca-Sanchez (1935, pp. 242– 243)). Numerous peasant rebellions engulfed mita districts during the 1910s and 1920s, and indiscriminate banditry and livestock rustling remained preva- lent in some mita districts for decades (Jacobsen (1993), Ramos Zambrano (1984), Tamayo Herrera (1982), Hazen (1974, pp. 170–178)). In contrast, large landowners had been established since the early 17th century in non-mita dis- tricts, which remained relatively stable (Flores Galindo (1987, p. 240)). In 1969, the Peruvian government enacted an agrarian reform bill man- dating the complete dissolution of haciendas. As a result, the hacienda elite were deposed and lands formerly belonging to haciendas were divided into Agricultural Societies of Social Interest (SAIS) during the early 1970s (Flores Galindo (1987)). In SAIS, neighboring indigenous communities and the pro- ducers acted as collective owners. By the late 1970s, attempts to impose col- lective ownership through SAIS had failed, and many SAIS were divided and allocated to individuals (Mar and Mejia (1980)). The 1994 Agricultural Census PERSISTENT EFFECTS OF MITA 1891 (INEI (1994)) documents that when considering districts within 50 km of the mita boundary, 20% of household heads outside the mita catchment received their land in the 1970s through the agrarian reform, versus only 9% inside the mita catchment. Column 5, using data from the 1994 Agricultural Census, doc- uments somewhat lower land inequality in non-mita districts. This ?nding is consistent with those in columns 1–4, given that non-mita districts had more large properties that could be distributed to smallholders during the agrarian reform.30 4.2. Public Goods Table VII examines the mita's impact on education in 1876, 1940, and 2001, providing two sets of interesting results.31 First, there is some evidence that the mita lowered access to education historically, although point estimates are im- precisely estimated by the longitude–latitude RD polynomial. In column 1, the dependent variable is the district's mean literacy rate, obtained from the 1876 Population Census (Dirección de Estadística del Perú (1878)). Individuals are de?ned as literate if they could read, write, or both. Panels B and C show a highly signi?cant mita effect of around 2 percentage points, as compared to an average literacy rate of 3.6% in the region I examine. The estimated effect is smaller, at around one percentage point, and not statistically signi?cant, when estimated using the more ?exible longitude–latitude speci?cation.32 In column 2, the dependent variable is mean years of schooling by district, from the 1940 Population Census (Dirección de Estadística del Perú 1944). The speci?cations reported in panels A–C suggest a long-run negative mita effect of around 0.2 years, as compared to a mean schooling attainment of 0.47 years throughout the study region, which again is statistically signi?cant in panels B and C. While this provides support for a mita effect on education historically, the evidence for an effect today is weak. In column 3, the dependent variable is individ- ual years of schooling, obtained from ENAHO (2001). The mita coef?cient is negative in all panels, but is of substantial magnitude and marginally signi?cant only in panel A.33 It is also statistically insigni?cant in most speci?cations in Ta- ble A.III. This evidence is consistent with studies of the Peruvian educational 30 The 1994 Agricultural Census also documents that a similar percentage of households across the mita boundary held formal titles to their land. 31 Education, roads, and irrigation are the three public goods traditionally provided in Peru (Portocarrero, Beltran, and Zimmerman (1988)). Irrigation has been almost exclusively concen- trated along the coast. 32 In some of the speci?cations in Table A.III in the Supplemental Material that interact the RD polynomial with the mita dummy, the estimated mita effect is near 0. This discrepancy is explained by two mita districts with relatively high literacy located near the mita boundary, to which these speci?cations are sensitive. When these two observations are dropped, the magnitude of the effect is similar across speci?cations. 33 Data from the 1981 Population Census (INEI (1981)) likewise do not show a mita effect on years of schooling. Moreover, data collected by the Ministro de Educación in 2005 reveal no sys- 1892 MELISSA DELL TABLE VII EDUCATIONa Dependent Variable Mean Years Mean Years Literacy of Schooling of Schooling 1876 1940 2001 (1) (2) (3) Panel A. Cubic Polynomial in Latitude and Longitude Mita ?0 015 ?0 265 ?1 479* (0 012) (0 177) (0 872) R2 0 401 0 280 0 020 Panel B. Cubic Polynomial in Distance to Potosí Mita ?0 020*** ?0 181** ?0 341 (0 007) (0 078) (0 451) R2 0 345 0 187 0 007 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita ?0 022*** ?0 209*** ?0 111 (0 006) (0 076) (0 429) R2 0 301 0 234 0 004 Geo. controls yes yes yes Boundary F.E.s yes yes yes Mean dep. var. 0.036 0.470 4.457 Clusters 95 118 52 Observations 95 118 4038 aThe unit of observation is the district in columns 1 and 2 and the individual in column 3. Robust standard errors, adjusted for clustering by district, are in parentheses. The dependent variable is mean literacy in 1876 in column 1 (Dirección de Estadística del Perú (1878)), mean years of schooling in 1940 in column 2 (Dirección de Estadística del Perú (1944)), and individual years of schooling in 2001 in column 3 (ENAHO (2001)). Panel A includes a cubic polynomial in the latitude and longitude of the observation's district capital, panel B includes a cubic polynomial in Euclidean distance from the observation's district capital to Potosí, and panel C includes a cubic polynomial in Euclidean distance to the nearest point on the mita boundary. All regressions include geographic controls and bound- ary segment ?xed effects. The samples include districts whose capitals are less than 50 km from the mita boundary. Columns 1 and 2 are weighted by the square root of the district's population. 64% of the observations are in mita districts in column 1, 63% in column 2, and 67% in column 3. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. sector, which emphasize near-universal access (Saavedra and Suárez (2002), Portocarrero and Oliart (1989)). What about roads, the other principal public good in Peru? I estimate the mita's impact using a GIS road map of Peru produced by the Ministro de Trans- porte (2006). The map classi?es roads as paved, gravel, nongravel, and trocha tematic differences in primary or secondary school enrollment or completion rates. Examination of data from a 2006 census of schools likewise showed little evidence for a causal impact of the mita on school infrastructure or the student-to-teacher ratio. PERSISTENT EFFECTS OF MITA 1893 TABLE VIII ROADSa Dependent Variable Density of Density of Density of Paved/Gravel Local Road Regional Road Regional Networks Networks Roads (1) (2) (3) Panel A. Cubic Polynomial in Latitude and Longitude Mita 0 464 ?29 276* ?22 426* (18 575) (16 038) (12 178) R2 0 232 0 293 0 271 Panel B. Cubic Polynomial in Distance to Potosí Mita ?1 522 ?32 644*** ?30 698*** (12 101) (8 988) (8 155) R2 0 217 0 271 0 256 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita 0 535 ?35 831*** ?32 458*** (12 227) (9 386) (8 638) R2 0 213 0 226 0 208 Geo. controls yes yes yes Boundary F.E.s yes yes yes Mean dep. var. 85.34 33.55 22.51 Observations 185 185 185 aThe unit of observation is the district. Robust standard errors are in parentheses. The road densities are de?ned as total length in meters of the respective road type in each district divided by the district's surface area, in kilome- ters squared. They are calculated using a GIS map of Peru's road networks (Ministro de Transporte (2006)). Panel A includes a cubic polynomial in the latitude and longitude of the observation's district capital, panel B includes a cu- bic polynomial in Euclidean distance from the observation's district capital to Potosí, and panel C includes a cubic polynomial in Euclidean distance to the nearest point on the mita boundary. All regressions include geographic con- trols and boundary segment ?xed effects. The samples include districts whose capitals are less than 50 km from the mita boundary. 66% of the observations are in mita districts. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. carrozable, which translates as "narrow path, often through wild vegetation that a vehicle can be driven on with great dif?culty" (Real Academia Espa?ola (2006)). The total length (in meters) of district roads is divided by the district surface area (in kilometers squared) to obtain a road network density. Column 1 of Table VIII suggests that the mita does not impact local road networks, which consist primarily of nongravel and trocha roads. Care is re- quired in interpreting this result, as the World Bank's Rural Roads program, operating since 1997, has worked to reduce disparities in local road networks in marginalized areas of Peru. In contrast, there are signi?cant disparities in regional road networks, which connect population centers to each other. Col- umn 2 in panel A estimates that a mita effect lowers the density of regional 1894 MELISSA DELL roads by a statistically signi?cant ?29.3 meters of roadway for every square kilometer of district surface area (s.e. = 16.0). In panels B and C, the coef?- cients are similar, at ?32.6 and ?35.8, respectively, and are signi?cant at the 1% level. This large effect compares to an average road density in mita districts of 20. Column 3 breaks down the result by looking only at the two highest qual- ity road types—paved and gravel—and a similar picture emerges.34 If substantial population and economic activity endogenously clustered along roads, the relative poverty of mita districts would not be that surpris- ing. While many of Peru's roads were built or paved in the interlude between 1940 and 1990, aggregate population responses appear minimal. The corre- lation between 1940 district population density and the density of paved and gravel roads, measured in 2006, is 0.58; when looking at this correlation using 1993 population density, it remains at 0.58. In summary, while I ?nd little evidence that a mita effect persists through ac- cess to schooling, there are pronounced disparities in road networks across the mita boundary. Consistent with this evidence, I hypothesize that the long-term presence of large landowners provided a stable land tenure system that encour- aged public goods provision.35 Because established landowners in non-mita dis- tricts controlled a large percentage of the productive factors and because their property rights were secure, it is probable that they received higher returns to investing in public goods than those inside the mita catchment. Moreover, historical evidence indicates that these landowners were better able to secure roads, through lobbying for government resources and organizing local labor, and these roads remain today (Stein (1980, p. 59)).36 4.3. Proximate Determinants of Household Consumption This section examines the mita's long-run effects on the proximate determi- nants of consumption. The limited available evidence does not suggest differ- ences in investment, so I focus on the labor force and market participation.37 Agriculture is an important economic activity, providing primary employment for around 70% of the population in the region examined. Thus, Table IX be- gins by looking at the percentage of the district labor force whose primary occupation is agriculture, taken from the 1993 Population Census. The median 34 18% of mita districts can be accessed by paved roads versus 40% of non-mita districts (INEI (2004)). 35 The elasticity of equivalent consumption in 2001 with respect to haciendas per capita in 1689, in non-mita districts, is 0.036 (s.e. = 0.022). 36 The ?rst modern road building campaigns occurred in the 1920s and many of the region's roads were constructed in the 1950s (Stein (1980), Capu?ay (1951, pp. 197–199)). 37 Data from the 1994 Agricultural Census on utilization of 15 types of capital goods and 12 types of infrastructure for agricultural production do not show differences across the mita bound- ary, nor is the length of fallowing different. I am not aware of data on private investment outside of agriculture. PERSISTENT EFFECTS OF MITA 1895 TABLE IX CONSUMPTION CHANNELSa Dependent Variable Agricultural Household Member Percent of District Household Sells Employed Outside Labor Force in Part of Produce in the Agricultural Agriculture—1993 Markets—1994 Unit—1994 (1) (2) (3) Panel A. Cubic Polynomial in Latitude and Longitude Mita 0 211 ?0 074** ?0 013 (0 140) (0 036) (0 032) R2 0 177 0 176 0 010 Panel B. Cubic Polynomial in Distance to Potosí Mita 0 101 ?0 208*** ?0 033 (0 061) (0 030) (0 020) R2 0 112 0 144 0 008 Panel C. Cubic Polynomial in Distance to Mita Boundary Mita 0 092* ?0 225*** ?0 038** (0 054) (0 032) (0 018) R2 0 213 0 136 0 006 Geo. controls yes yes yes Boundary F.E.s yes yes yes Mean dep. var. 0.697 0.173 0.245 Clusters 179 178 182 Observations 179 160,990 183,596 aRobust standard errors, adjusted for clustering by district in columns 2 and 3, are in parentheses. The dependent variable in column 1 is the percentage of the district's labor force engaged in agriculture as a primary occupation (INEI (1993)), in column 2 it is an indicator equal to 1 if the agricultural unit sells at least part of its produce in markets, and in column 3 it is an indicator equal to 1 if at least one member of the household pursues secondary employment outside the agricultural unit (INEI (1994)). Panel A includes a cubic polynomial in the latitude and longitude of the observation's district capital, panel B includes a cubic polynomial in Euclidean distance from the observation's district capital to Potosí, and panel C includes a cubic polynomial in Euclidean distance to the nearest point on the mita boundary. All regressions include geographic controls and boundary segment ?xed effects. Column 1 is weighted by the square root of the district's population. 66% of the observations in column 1 are in mita districts, 68% in column 2, and 69% in column 3. Coef?cients that are signi?cantly different from zero are denoted by the following system: *10%, **5%, and ***1%. point estimate on mitad is equal to 0.10 and marginally signi?cant only in panel C, providing some weak evidence for a mita effect on employment in agricul- ture. Further results (not shown) do not ?nd an effect on male and female labor force participation and hours worked. The dependent variable in column 2, from the 1994 Agricultural Census, is a dummy equal to 1 if the agricultural household sells at least part of its produce in market. The corpus of evidence suggests we can be con?dent that the mita's effects persist in part through an economically meaningful impact on 1896 MELISSA DELL agricultural market participation, although the precise magnitude of this effect is dif?cult to convincingly establish given the properties of the data and the mechanics of RD. The cubic longitude–latitude regression estimates a long- run mita effect of ?0.074 (s.e. = 0.036), which is signi?cant at the 5% level and compares to a mean market participation rate in the study region of 0.17. The magnitude of this estimate differs substantially from estimates that use a cubic polynomial in distance to Potosí (panel B, ?0.208, s.e. = 0.030) and a cubic polynomial in distance to the mita boundary (panel C, ?0.225, s.e. = 0.032). It also contrasts to the estimate from ordinary least squares limiting the sample to districts bordering the boundary (?0.178, s.e. = 0.050). The surface plots in Figure 3 shed some light on why the cubic longitude– latitude point estimate is smaller. They show predicted values in "longitude– latitude–market participation rate" space from regressing the market partic- ipation dummy on the mita dummy (upper left), the mita dummy and a lin- ear polynomial in longitude–latitude (upper right), the mita dummy and a quadratic polynomial in longitude–latitude (lower left), or the mita dummy and a cubic polynomial in longitude–latitude (lower right).38 The mita region is seen from the side, appearing as a "canyon" with lower market participation values. In the surface plot with the cubic polynomial, which is analogous to the regression in panel A, the function increases smoothly and steeply, by orders of magnitude, near the mita boundary. In contrast, the other plots model less of the steep variation near the boundary as smooth and thus estimate a larger discontinuity. The single-dimensional RDs likewise have fewer degrees of free- dom to model the variation near the boundary as smooth. It is not obvious which speci?cation produces the most accurate results, as a more ?exible spec- i?cation will not necessarily yield a more reliable estimate. For example, con- sider the stylized case of an equation that includes the mita dummy and a poly- nomial with as many terms as observations. This has a solution that perfectly ?ts the data with a discontinuity term of zero, regardless of how large the true mita effect is. On the other hand, ?exibility is important if parsimonious speci?- cations do not have enough degrees of freedom to accurately model smoothly changing unobservables. While there is not, for example, a large urban area at the peak of the cubic polynomial causing market participation to increase steeply in this region, it is dif?cult to conclusively argue that the variation is attributable to the discontinuity and not to unobservables, or vice versa.39 The estimates in Tables IX and A.III are most useful for determining a range of 38 I show three-dimensional surface plots, instead of shaded plots as in Figure 2, because the predicted values can be seen more clearly and it is not necessary to plot the data points. 39 Note, however, that the relatively large (mita) urban area of Ayacucho, while outside the study region, is near the cluster of mita districts with high market participation in the upper left corner of the mita area. PERSISTENT EFFECTS OF MITA 1897 FIGURE 3.—Plots of predicted values from regressing a market participation dummy on the mita dummy and various degrees of polynomials in longitude and latitude. See the text for a detailed description. 1898 MELISSA DELL possible mita effects consistent with the data, and this range supports an eco- nomically meaningful mita effect on market participation.40 A mita effect on market participation is consistent with the ?ndings on road networks, particularly given that recent studies on Andean Peru empirically connect poor road infrastructure to higher transaction costs, lower market par- ticipation, and reduced household income (Escobal and Ponce (2002), Escobal (2001), Agreda and Escobal (1998)).41 An alternative hypothesis is that agricul- tural producers in mita districts supplement their income by working as wage laborers rather than by producing for markets. In column 3, the dependent variable is an indicator equal to 1 if a member of the agricultural household participates in secondary employment outside the agricultural unit, also taken from the 1994 Agricultural Census. Estimates suggest that, if anything, the mita effect on participation in secondary employment is negative. Could residents in mita districts have less desire to participate in the market economy, rather than being constrained by poor road infrastructure? While Shining Path, a Maoist guerilla movement, gained a strong foothold in the re- gion during the 1980s, this hypothesis seems unlikely.42 Shining Path's rise to power occurred against a backdrop of limited support for Maoist ideology, and the movement's attempts to reduce participation in markets were unpopular and unsuccessful where attempted (McClintock (1998), Palmer (1994)). Recent qualitative evidence also underscores roads and market access. The citizens I spoke with while visiting eight primarily mita and six primarily non- mita provinces were acutely aware that some areas are more prosperous than 40 The speci?cations interacting the mita dummy with a linear or quadratic polynomial in dis- tance to the mita boundary, reported in Table A.III, do not estimate a signi?cant mita effect. Graphical evidence suggests that these speci?cations are sensitive to outliers near the boundary. 41 In my sample, 33% of agricultural households in districts with paved road density above the median participate in markets, as compared to 13% in districts with paved road density below the median. Of course, there may also exist other channels through which a mita effect lowers market participation. Data from the 1994 Agricultural Census reveal that the median size of household landholdings is somewhat lower inside the mita catchment (at 1.2 hectares) than out- side (at 1.4 hectares). If marketing agricultural produce involves ?xed costs, a broader group of small farmers in non-mita districts may ?nd it pro?table. 42 Many of the factors linked to the mita (poor infrastructure, limited access to markets, poorly de?ned property rights, and poverty) are heavily emphasized as the leading factors promoting Shining Path (Comisión de la Verdad y Reconciliación (2003, Vol. 1, p. 94), McClintock (1998), Palmer (1994)). Thus, I tested whether there was a mita effect on Shining Path (results available upon request). To measure the intensity of Shining Path, I exploit a loophole in the Peruvian constitution that stipulates that when more than two-thirds of votes cast are blank or null, au- thorities cannot be renewed (Pareja and Gatti (1990)). In an attempt to sabotage the 1989 mu- nicipal elections, Shining Path operatives encouraged citizens to cast blank or null (secret) ballots (McClintock (1998, p. 79)). I ?nd that a mita effect increased blank/null votes by 10.7 percentage points (s.e. = 0.031), suggesting greater support for and intimidation by Shining Path in mita dis- tricts. Moreover, estimates show that a mita effect increased the probability that authorities were not renewed by a highly signi?cant 43.5 percentage points. I also look at blank/null votes in 2002, 10 years after Shining Path's defeat, and there is no longer an effect. PERSISTENT EFFECTS OF MITA 1899 others. When discussing the factors leading to the observed income differ- ences, a common theme was that it is dif?cult to transport crops to mar- kets. Thus, most residents in mita districts are engaged in subsistence farming. Agrarian scientist Gonzales Castro (2006) argued, "Some provinces have been favored, with the government—particularly during the large road building campaign in the early 1950s—choosing to construct roads in some provinces and completely ignore others." At the forefront of the local government's mis- sion in the (primarily mita) province of Espinar is "to advocate effectively for a system of modern roads to regional markets" Espinar Municipal Government (2008). Popular demands have also centered on roads and markets. In 2004, (the mita district) Ilave made international headlines when demonstrations in- volving over 10,000 protestors culminated with the lynching of Ilave's mayor, whom protestors accused of failing to deliver on promises to pave the town's access road and build a local market (Shifter (2004)). 5. CONCLUDING REMARKS This paper documents and exploits plausible exogenous variation in the as- signment of the mita to identify channels through which it in?uences contem- porary economic development. I estimate that its long-run effects lower house- hold consumption by around 25% and increase stunting in children by around 6 percentage points. I then document land tenure, public goods, and market participation as channels through which its impacts persist. In existing theories about land inequality and long-run growth, the implicit counterfactual to large landowners in Latin America is secure, enfranchised smallholders (Engerman and Sokoloff (1997)). This is not an appropriate counterfactual for Peru, or many other places in Latin America, because insti- tutional structures largely in place before the formation of the landed elite did not provide secure property rights, protection from exploitation, or a host of other guarantees to potential smallholders. Large landowners—while they did not aim to promote economic prosperity for the masses—did shield individu- als from exploitation by a highly extractive state and did ensure public goods. 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