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The study of Manes (1918) lists subnational defaults in the former German Empire. The region of Silesia went bankrupt in 1763, Prussia in 1807 and 1813, Westphalia in 1812, Hesse in 1814/1815 and Schleswig-Holstein went bankrupt in 1850. Remarkably, local government debt per capita in 1932 is quite high, especially in the defaulted regions of Schleswig-Holstein, Hesse and partially Westphalia. Cities also experienced defaults or received bail-outs. Gdansk cut two third of its debt in 1824, and the city of Halle cut its debt by 90 percent in 1717. Magdeburg defaulted in 1668. More examples are provided by Schmoller (1873). Becker, Sascha, Katrin Boeckh, Christa Hainz, and Ludger Woessmann, “The Empire Is Dead, Long Live the Empire! Long-Run Persistence of Trust and Corruption in the Bureaucracy, †Economic Journal (forthcoming).
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