“…By developing a new framework to help explain why Europe was persistently fragmented, we complement the literature that emphasizes the positive economic consequences of European political fragmentation, which include promoting economic and political freedom (Montesquieu, ; Pirenne, ; Hicks, ; Jones, ); encouraging experiments in political structures and investments in state capacity (Baechler, ; Cowen, ; Tilly, ; Hoffman, , ; Gennaioli and Voth, ); intensifying interstate conflicts and thereby promoting urbanization (Voigtländer and Voth, ); and fostering innovation and scientific development (Diamond, ; Mokyr, ; Lagerlof, ) . Our analysis is also related to the rise of state capacity in Europe and the weakening of the Chinese state after 1750 (Dincecco, ; Johnson and Koyama, , , ; Sng, ; Sng and Moriguchi, ; Dincecco and Katz, ) and to recent research that emphasizes other aspects of Europe's possible advantages in the Great Divergence such as the higher age at first marriage than the rest of the world (Voigtländer and Voth, ); public provision of poor relief versus reliance on clans as was the case in China (Greif et al., ); institutions that were less reliant on religion (Rubin, ); greater human capital (Kelly et al., ); and higher social status for entrepreneurs and inventors (McCloskey, ).…”