Roman economy
The study of the economies of the ancient city-state of Rome and its empire during the Republican and Imperial periods remains highly speculative. There are no surviving records of business and government accounts, such as detailed reports of tax revenues, and few literary sources regarding economic activity. Instead, the study of this ancient economy is today mainly based on the surviving archeological and literary evidence that allow researchers to form conjectures based on comparisons with other more recent pre-industrial economies.
During the early centuries of the
Following the Punic Wars, during the late Republic and the early Roman Empire, the economy became more monetized and a more sophisticated financial system emerged.[4] Emperors issued coinage stamped with their portraits to disseminate propaganda, to create public goodwill, and to symbolize their wealth and power.[5] The Roman Imperial monetary economy often suffered bouts of inflation in part by emperors who issued money to fund high-profile imperial projects such as public building works or costly wars that offered opportunities for propaganda but little or no material gain.[4]
Emperors of the
Banking system
The setup of the banking system under the Empire allowed the exchange of extremely large sums without the physical transfer of coins, which led to fiat money. With no central bank, a professional deposit banker (argentarius, coactor argentarius, or later nummularius) received and held deposits for a fixed or indefinite term and lent money to third parties.[10] Generally, available capital exceeded the amount needed by borrowers and so loans were made and credit was extended on risky terms.[7][11] The senatorial elite were involved heavily in private lending, as both creditors and borrowers, and made loans from their personal fortunes on the basis of social connections.[4]
Banks of classical antiquity typically kept
Mining and metallurgy
The main mining regions of the Empire were Spain (gold, silver, copper, tin, lead); Gaul (gold, silver, iron); Britain (mainly iron, lead, tin), the
The invention and widespread application of hydraulic mining, namely hushing and ground-sluicing, aided by the ability of the Romans to plan and execute mining operations on a large scale, allowed various base and precious metals to be extracted on a proto-industrial scale only rarely, if ever, matched until the Industrial Revolution.[24] The most common fuel by far for smelting and forging operations, as well as heating purposes, was wood and particularly charcoal, which is nearly twice as efficient.[25] In addition, coal was mined in some regions to a fairly large extent: Almost all major coalfields in Roman Britain were exploited by the late 2nd century AD, and a lively trade along the English North Sea coast developed, which extended to the continental Rhineland, where bituminous coal was already used for the smelting of iron ore.[26]
Output per annum | Comment | |
---|---|---|
Iron | 82,500 t[27]
|
Based on estimate of iron production at 1.5 kg per head in Roman Britain, extrapolated to population size of 55 million for entire empire[28] |
Copper | 15,000 t[29] | Largest preindustrial producer[30] |
Lead | 80,000 t[31] | Largest preindustrial producer[32] |
Silver | [33] | 200 tAt its peak around the mid-2nd century AD, Roman stock is estimated at 10,000 t, five to ten times larger than the combined silver mass of medieval Europe and the Caliphate around 800 AD.[34] |
Gold | [35] | 9 tProduction in Callaecia, and Lusitania (all Iberian Peninsula ) alone
|
Transportation and communication
The Roman Empire completely encircled the Mediterranean, which they called "our sea" (mare nostrum).[36] Roman sailing vessels navigated the Mediterranean as well as the major rivers of the Empire, including the Guadalquivir, Ebro, Rhône, Rhine, Tiber and Nile.[37] Transport by water was preferred where possible, as moving commodities by land was more difficult[38] and much more expensive: during Roman times, travel by sea was 50 to 60 times cheaper than travel by land according to Keith Hopkins.[39] During the Roman period, sea trade in the Mediterranean reached its pre-modern peak.[40] Vehicles, wheels, and ships indicate the existence of a great number of skilled woodworkers.[41]
Land transport utilized the advanced system of
Trade and commodities
Roman provinces traded among themselves, but trade extended outside the frontiers to regions
Though most provinces were capable of producing wine,
Trade in the early Roman Empire allowed Rome to become as vast and great as it did. Emperor Augustus, despite his intense public and private spending, took control of trade from the government and expanded Roman influence by opening new trading markets in overseas areas such as Britain, Germany, and Africa.[53] Rome dominated trade and influence over the world in the age of the Roman Empire but could not advance in their industrial and manufacturing processes.[53] This ultimately threatened the expanding trading and commerce industries that Augustus brought about, as well as the strong standing of the Empire in the eyes of the Romans and the world.
Whereas the Roman economy was able to thrive in the first few centuries AD thanks to its advanced trade and commerce, the boom was tempered as their ways of conducting business changed drastically. Due to Augustus and the aristocracy holding the large majority of land and wealth in Rome,[53] trade and commerce in the basic everyday commodities began to decline. Trade began to only take place for the more luxurious commodities, effectively excluding the majority of Romans due to their poverty.[53] Foreign trade was also incredibly significant to the rise and complexity of the Roman economy, and the Romans traded commodities such as wine, oil, grain, salt, arms, and iron to countries primarily in the West.[53][37] When those countries came under decline in around 2nd century AD, and respective trade between them and the Roman Empire had to cease as a result, this put a dent in the strength of the Roman economy as foreign trade was a major factor of economic growth for the superfluously resourced Empire.[53] Compounded with their inability to make proper production advancements to keep up with their growing and evolving economy, these events hindered Roman trade, limited their array of commodities and harmed the economy.
Labour and occupations
Inscriptions record 268 different occupations in the city of Rome, and 85 in Pompeii.
Work performed by slaves falls into five general categories: domestic, with epitaphs recording at least 55 different household jobs;
Textile and clothing production was a major source of employment. Both textiles and finished garments were traded among the peoples of the Empire, whose products were often named for them or a particular town, rather like a
Estimates of national accounts and income distribution
As there are no surviving records that allow economic historians to produce reliable estimates for the national accounts of ancient Rome, thus the estimation of ancient Roman product levels remains speculative. Estimates of the gross domestic product of the Roman economy during the Principate.[66] For the sample years of 14, 100, and 150 AD, estimates of per capita GDP range from 166 to 380 sestertii.
The Roman Empire was not uniformly developed. The GDP per capita of
In the
Based on the evidence left by the archaeological remains of the houses of the prosperous Roman town of Pompeii, Geoffrey Kron[72] estimates that the mean household income of Pompeii was at 7,900 sestertii, a much higher than is implied by the GDP estimates for the whole Empire. Based on the distribution of house sizes from these archaeological remains, he also estimated a distribution of income that implies that Pompeii had a much larger middle-class than would be expected in the Scheidel–Friesen model. His estimates pointed to a level of living standards in Pompeii superior to 19th century Western Europe. He concluded that existing estimates of Roman GDP should be revised upwards.
Unit | Goldsmith 1984[73] |
Hopkins 1995/96[74] |
Temin 2006[75] |
Maddison 2007[76] |
Bang 2008[77] |
Scheidel/Friesen 2009[78] |
Lo Cascio/Malanima 2009[68] | |
---|---|---|---|---|---|---|---|---|
GDP per capita in
|
Sestertii
|
380 | 225 | 166 | 380 | 229 | 260 | – |
Wheat equivalent (kg) | 843 | 491 | 614 | 843 | 500 | 680 | – | |
2023 dollars | – | – | – | 1,329 | – | 1,446 | 2,192 | |
Population (Approx. year) |
55 million (14 AD) |
60 million (14 AD) |
55 million (100 AD) |
44 million (14 AD) |
60 million (150 AD) |
70 million (150 AD) |
– (14 AD) | |
Total GDP in | Sestertii | 20.9 billion | 13.5 billion | - | 16.7 billion | 13.7 billion | 17-19 billion | – |
Wheat equivalent ( Mt )
|
46.4 | 29.5 | 33.8 | 37.1 | 30 | 50 | – | |
2023 dollars | – | – | – | $59 billion | – | $101 billion | – | |
"–" indicates unknown value. |
A ^ Decimal fractions rounded to the nearest tenth. Italic numbers not directly given by the authors; they are obtained by multiplying the respective value of GDP per capita by estimated population size.
Regional breakdown
Region | Population (thousands) |
NDI per capita(2023 dollars) |
Total NDI (millions of 2023 dollars) |
---|---|---|---|
Roman Europe (including Italy) | 23,100 | 1,383 | 31,925 |
Roman Europe (excluding Italy) | 16,100 | 1,115 | 17,932 |
Roman Asia | 12,200 | 1,283 | 15,649 |
Roman Africa | 8,700 | 1,262 | 10,984 |
Total Roman Empire | 44,000 | 1,329 | 58,558 |
The European NDI per capita was higher than in the Asian and African provinces if Italy is included, but without it, the rest of Europe had a lower NDI per capita than the Asian and African provinces.
Taxation
Historians conjectured that imperial taxation under amounted to about 5% of the Empire's
The tax code was "bewildering" in its complicated system of
The primary source of direct tax revenue was individuals, who paid a
A major source of indirect-tax revenue was the portoria, customs and tolls on imports and exports, including among provinces.[84] Special taxes were levied on the slave trade. Towards the end of his reign, Augustus instituted a 4% tax on the sale of slaves,[92] which Nero shifted from the purchaser to the dealers, who responded by raising their prices.[93] An owner who manumitted a slave paid a "freedom tax", calculated at 5% of value.[94]
An inheritance tax of 5% was assessed when Roman citizens above a certain net worth left property to anyone but members of their immediate family. Revenues from the estate tax and from a 1% sales tax on auctions went towards the veterans' pension fund (aerarium militare).[84]
Low taxes helped the Roman aristocracy increase their wealth, which equalled or exceeded the revenues of the central government. An emperor sometimes replenished his treasury by confiscating the estates of the "super-rich", but in the later period, the resistance of the wealthy to paying taxes was one of the factors contributing to the collapse of the Empire.[87]
State revenues
Existing literary sources provide only fragmentary evidence regarding Roman state revenues. Some of the existing literary evidence is detailed as follows: With the conclusion of the
During the 1st century AD, the total value of imported goods form the maritime trade coming from the Indian Ocean region (including the silk and spice trade) was roughly 1,000 million sesterces, allowing the Roman state to garner 250 million sesterces of that figure in tax revenue.[98] Even after the reduction in the number of Roman legions from about fifty to twenty-eight (500,000 down to 300,000 full-time soldiers and auxiliaries) the Roman state under Augustus still spent 640 million sesterces on military costs alone per annum (with total state expenses hovering around 1,000 million).[99] Raoul McLaughlin stresses that "as long as international commerce thrived, the Roman Empire could meet these high-level military costs."[99] A further 25 million sesterces in state revenues was gathered by taxing the Roman exported goods loaded on ships destined for Arabia and India (worth roughly 100 million in total).[100]
Advertising
In ancient Rome businesses advertised themselves primarily through word of mouth, the usage of the trade sign, and through black or red writings inscribed on surfaces.[101] They were displayed as frescoes or mosaics. Masters would task their slaves with inscribing advertisements onto the walls of ancient Roman settlements.[102] In ancient Rome, graffiti was the equivalent of billboards.[103] Goods and products in ancient Rome may have carried inscriptions which were used to advertise other goods and services. Toy chariots were inscribed with the names of famous charioteers and lamps and bowls had images of famous gladiators.[104] It was also common for merchants to advertise their brands on amphorae.[103] These markers were known as the titulus pictus. They were used to convey information about the good and provide an easily recognizable label that attracted consumers to the product.[105] Merchants would hire orators to spread the news of their product on the streets of the Roman cities.[106] Wealthy businessmen would pay people to mention their business in literature.[103]
Roman vendors could also market based on their own unique product brand. In Pompeii merchants advertised their own brands of garum, a Roman fish sauce, based on its ingredients, processing, and the manufacturer. Two known marketing slogans from Pompeii are "essence of the best mackerel" and "best available." Wine merchants in ancient Rome used positioning, which is a marketing term referring to the place a brand holds in the customer's minds. They marketed their wine as high-class.[106]
Archaeological excavations in Pompeii revealed one advertisement that stated:[107]
The gladiators owned by Aulus Suettius Certus will fight at Pompeii on May 31. There will be an animal hunt and awnings will be provided.
— Unknown
Advertising in ancient Rome served multiple purposes. It helped businesses market their services, it promoted politicians, and it advertised games and entertainment.[106]
See also
References
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- ^ Garnsey, Peter, et al. The Roman Empire: Economy, Society and Culture. 2nd ed., University of California Press, 2015, www.jstor.org/stable/10.1525/j.ctt9qh25h.
- ^ Temin, Peter. “Financial Intermediation in the Early Roman Empire.” The Journal of Economic History, vol. 64, no. 3, 2004, pp. 705–733., www.jstor.org/stable/3874817.
- ^ a b c d Andreau, Banking and Business in the Roman World, p. 2; Harris, "The Nature of Roman Money," n.p.
- S2CID 163277451.
- ^ Harl, Coinage in the Roman Economy, 300 B.C. to A.D. 700, p. 125–136.
- ^ a b c Harris, "The Nature of Roman Money," in The Monetary Systems of the Greeks and Romans, n.p.
- ^ Harl, Coinage in the Roman Economy, 300 B.C. to A.D. 700, pp. 128–129.
- ^ Harris, "The Nature of Roman Money," in The Monetary Systems of the Greeks and Romans, n.p.; Harl, Coinage in the Roman Economy, 300 B.C. to A.D. 700, pp. 128–129.
- ^ Jean Andreau, Banking and Business in the Roman World (Cambridge University Press, 1999), p. 2.
- ^ name=":18">David Kessler and Peter Temin, "Money and Prices in the Early Roman Empire," in The Monetary Systems of the Greeks and Romans, in The Monetary Systems of the Greeks and Romans (Oxford University Press, 2008), n.p.
- ^ a b W.V. Harris, "The Nature of Roman Money," in The Monetary Systems of the Greeks and Romans, n.p.
- ^ "Mining," in Late Antiquity: A Guide to the Postclassical World p. 579.
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- The Journal of Roman Studies, Vol. 92, pp. 1–32 (17–21, 25, 32)
- ISBN 0-500-40035-0, p. 196
- The Journal of Roman Studies, Vol. 92, pp. 1–32 (25–29)
- The Journal of Roman Studies, Vol. 92, pp. 1–32 (25–29)
- ^ Callataÿ, François de (2005): "The Graeco-Roman Economy in the Super Long-Run: Lead, Copper, and Shipwrecks", Journal of Roman Archaeology, Vol. 18, pp. 361–372 (361–369); Hong, Sungmin; Candelone, Jean-Pierre; Patterson, Clair C.; Boutron, Claude F. (1996): "History of Ancient Copper Smelting Pollution During Roman and Medieval Times Recorded in Greenland Ice", Science, Vol. 272, No. 5259, pp. 246–249 (247, fig. 1 and 2; 248, table 1); Hong, Sungmin; Candelone, Jean-Pierre; Patterson, Clair C.; Boutron, Claude F. (1994): "Greenland Ice Evidence of Hemispheric Lead Pollution Two Millennia Ago by Greek and Roman Civilizations", Science, Vol. 265, No. 5180, pp. 1841–1843; Settle, Dorothy M.; Patterson, Clair C. (1980): "Lead in Albacore: Guide to Lead Pollution in Americans", Science, Vol. 207, No. 4436, pp. 1167–1176 (1170f.)
- S2CID 45080402.
- ^ Patterson, C. C. (1972): "Silver Stocks and Losses in Ancient and Medieval Times", The Economic History Review, Vol. 25, No. 2, pp. 205–235 (228, table 6); Callataÿ, François de (2005): "The Graeco-Roman Economy in the Super Long-Run: Lead, Copper, and Shipwrecks", Journal of Roman Archaeology, Vol. 18, pp. 361–372 (365f.)
- ^ Patterson, C. C. (1972): "Silver Stocks and Losses in Ancient and Medieval Times", The Economic History Review, Vol. 25, No. 2, pp. 205–235 (216, table 2); Callataÿ, François de (2005): "The Graeco-Roman Economy in the Super Long-Run: Lead, Copper, and Shipwrecks", Journal of Roman Archaeology, Vol. 18, pp. 361–372 (365f.)
- ^ Hopkins, The Political Economy of the Roman Empire, p. 197.
- ^ Wilson 2002, pp. 17–21, 25, 32
- ^ Cech 2010, p. 20
- ^ Smith 1997, pp. 322–324
- ^ Craddock 2008, p. 108; Sim, Ridge 2002, p. 23; Healy 1978, p. 196
- ^ Sim, Ridge 2002, p. 23; Healy 1978, p. 196
- ^ World output, the large bulk of which is attributed to Roman mining and smelting activities (mainly in Spain, Cyprus and Central Europe): Hong, Candelone, Patterson, Boutron 1996, p. 247; Callataÿ 2005, pp. 366–369; cf. also Wilson 2002, pp. 25–29
- ^ Hong, Candelone, Patterson, Boutron 1996, p. 247, fig. 1 & 2; 248, table 1; Callataÿ 2005, pp. 366–369
- Asia Minorand, above all, Spain, with a 40% share in world production alone): Hong, Candelone, Patterson, Boutron 1994, p. 1841–1843; Callataÿ 2005, pp. 361–365; Settle, Patterson 1980, pp. 1170f.; cf. also Wilson 2002, pp. 25–29
- Middle Ages(p. 365).
- ^ Patterson 1972, p. 228, table 6; Callataÿ 2005, pp. 365f.; cf. also Wilson 2002, pp. 25–29
- ^ Patterson 1972, p. 216, table 2; Callataÿ 2005, pp. 365f.
- Naturalis Historia, 33.21.78, in: Wilson 2002, p. 27
- ^ Kevin Greene, The Archaeology of the Roman Economy p. 17.
- ^ a b W.V. Harris, "Trade," in The Cambridge Ancient History: The High Empire A.D. 70–192 (Cambridge University Press, 2000), vol. 11, p. 713.
- ^ Harris, "Trade," in CAH 11, p. 714.
- ^ Keith Hopkins, On the Political Economy of the Roman Empire
- ^ Quantifying the Roman Economy: Methods and Problems (Oxford Studies on the Roman Economy), edited by Alan Bowman, and Andrew Wilson.
- ^ Roger Bradley Ulrich, Roman Woodworking (Yale University Press, pp. 1–2.
- ^ a b Stambaugh, The Ancient Roman City, p. 253.
- ^ Ray Laurence, "Land Transport in Roman Italy: Costs, Practice and the Economy," in Trade, Traders and the Ancient City (Routledge, 1998), p. 129.
- ^ Keith Hopkins, "The Political Economy of the Roman Empire," in The Dynamics of Ancient Empires : State Power from Assyria to Byzantium (Oxford University Press, 2009), p. 187.
- ^ Holleran, Shopping in Ancient Rome, p. 142.
- ISBN 2503521789, p. 83.
- ^ Harris, "Trade," in CAH 11, p. 713.
- ^ Harris, "Trade," in CAH 11, p. 710.
- ^ Harris, "Trade," in CAH 11, pp. 717–729.
- ^ Mireille Corbier, "Coinage, Society, and Economy," in Cambridge Ancient History: The Crisis of Empire, A.D. 193–337 (Cambridge University Press, 2005), vol. 12, p. 404; Harris, "Trade," in CAH 11, p. 719.
- ^ Harris, "Trade," in CAH 11, p. 720.
- ^ Holleran, Shopping in Ancient Rome, pp. 146–147.
- ^ JSTOR 3290252.
- ^ Hopkins, "The Political Economy of the Roman Empire," p. 196.
- ^ Verboven, "The Associative Order: Status and Ethos among Roman Businessmen," preprint pp. 18, 23.
- ^ Eborarii and citriarii: Verboven, "The Associative Order: Status and Ethos among Roman Businessmen," preprint p. 21.
- ^ "Slavery in Rome," in The Oxford Encyclopedia of Ancient Greece and Rome (Oxford University Press, 2010), p. 323.
- ^ "Slavery in Rome," in The Oxford Encyclopedia of Ancient Greece and Rome, p. 323.
- ^ a b Garnsey and Saller, The Roman Empire: Economy, Society and Culture, p. 111.
- ^ Peter Temin, "The Labor Market of the Early Roman Empire," Journal of Interdisciplinary History 34.1 (2004), p. 517.
- A.H.M. Jones, "The Cloth Industry under the Roman Empire," Economic History Review 13.2 (1960), pp. 184–185.
- ^ a b Jones, "The Cloth Industry under the Roman Empire,"p. 192.
- ^ Jones, "The Cloth Industry under the Roman Empire," pp. 188–189.
- ^ Jones, "The Cloth Industry under the Roman Empire," pp. 190–191.
- ^ Vout, "The Myth of the Toga," p. 212. The college of centonarii is an elusive topic in scholarship, since they are also widely attested as urban firefighters; see Jinyu Liu, Collegia Centonariorum: The Guilds of Textile Dealers in the Roman West (Brill, 2009). Liu sees them as "primarily tradesmen and/or manufacturers engaged in the production and distribution of low- or medium-quality woolen textiles and clothing, including felt and its products."
- ISBN 978-0-521-78053-7
- ^ Kron Geoffrey “Comparative evidence and the reconstruction of the ancient economy: Greco-Roman housing and the level and distribution of wealth and income,” in F. de Callataÿ (ed.), Quantifying the Greco-Roman Economy and Beyond, 123-46. Bari: Edipuglia, 2014.
- ^ a b c Lo Cascio, Elio; Malanima, Paolo (Dec. 2009): "GDP in Pre-Modern Agrarian Economies (1–1820 AD). A Revision of the Estimates", Rivista di storia economica, Vol. 25, No. 3, pp. 391–420 (391–401)
- ^ a b Maddison 2007, pp. 47–51
- ^ Temin 2006, pp. 136
- S2CID 202968244.
- ^ Kron (2014), Comparative evidence and the reconstruction of the ancient economy: Greco-Roman housing and the level and distribution of wealth and income in F. de Callataÿ (ed.), Quantifying the Greco-Roman Economy and Beyond (Bari: Edipuglia, 2014) pp. 123-46.
- ^ Goldsmith 1984, pp. 263–288
- ^ Hopkins 1995/96, pp. 41–75. His estimates are upward revisions from Hopkins 1980, pp. 101–125, where he lays out his basic method.
- ^ Temin 2006, pp. 31–54
- ^ Maddison 2007, pp. 43–47; 50, table 1.10; 54, table 1.12
- ^ Bang 2008, pp. 86–91
- ^ Scheidel, Friesen Nov. 2009, pp. 61–91
- ^ "Statistics on World Population, GDP and Per Capita GDP, 1–f>". 27 July 2016.
- ^ a b Maddison 2007, p. 54, table 1.12
- ^ Maddison 2007, p. 55, table 1.14
- ^ Maddison 2007, p. 57, table 1.14
- ^ Morris, p. 183.
- ^ a b c d Potter (2009), p. 187.
- ^ Mogens Herman-Hansen (2006), Polis: An Introduction to the Ancient Greek City-State, Oxford University Press, USA.
- ^ Potter (2009), pp. 185–187.
- ^ a b Morris, p. 184.
- ^ Potter (2009), p. 185
- ^ Potter (2009), p. 185.
- ^ Potter (2009), p. 188.
- ^ a b Potter (2009), p. 186.
- ^ Cassius Dio 55.31.4.
- ^ Tacitus, Annales 13.31.2.
- ^ This was the vicesima libertatis, "the twentieth for freedom"; Potter (2009), p. 187.
- ^ ISBN 978-1-78346-381-7, p. 6.
- ISBN 978-1-78346-381-7, p. 7.
- ^ ISBN 978-1-78346-381-7, p. 12.
- ISBN 978-1-78346-381-7, p. 14.
- ^ ISBN 978-1-78346-381-7, p. 16.
- ISBN 978-1-78346-381-7, p. 19.
- ISBN 978-0-7021-5557-4.
- S2CID 158657199.
- ^ JSTOR 44080242.
- ISBN 978-0-275-98435-9.
- ISBN 978-90-04-37726-4.
- ^ ISBN 978-1-135-04357-5.
- ISBN 978-1-4109-2897-9.
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Further reading
- Bowman, A. K. and Wilson, A. I. (eds) (2009), Quantifying the Roman Economy: Methods and Problems, Oxford Studies in the Roman Economy 1. Oxford University Press, Oxford
- Bowman, A. K. and Wilson, A. I. (eds) (2012), Settlement, Urbanisation and Population, Oxford Studies in the Roman Economy 2. Oxford University Press, Oxford
- ISBN 978-0-521-78053-7
- ISSN 0895-3309.
- Temin, Peter. "Price Behaviour in the Roman Empire". - Presentation for the "Long-Term Quantification in Mediterranean Ancient History" conference in October 2009, held in Brussels, Belgium
- The Roman Peasant Project 2009-2014. University of Pennsylvania Press. 2021. ISBN 978-1-949057-08-9.