When Satefy Becomes Risky. Essays on Venality, Safe Assets, and the Bubble for Offices in Early Modern Spain

This dissertation examines the existence of an asset bubble in the Castilian market for offices in the 17th century. Utilizing a newly constructed database of 1,813 sales and 2,794 resignations of offices from 1543 to 1714, the study integrates quantitative empirical analysis with qualitative evidence to analyze market dynamics, office profitability, and financial characteristics. Findings confirm that venal offices evolved into a safe asset, ultimately experiencing a speculative bubble: “Office Mania” (1595–1630). The bubble emerged due to a shortage of traditional safe assets and easy credit access, culminating in a market collapse by the 1630s. This study contributes to financial history by demonstrating pre-industrial financial sophistication and the intricate relationship between venality, safe assets and bubbles. It also underscores the paradox of perceived safety fuelling speculative cycles and open new avenues for research on financial crises and early modern markets.