The Code of Hammurabi: An Economic Interpretation

Hammurabi was the ruler of Babylon from 1792 B.C. to 1750 B.C 1 . He is much celebrated for proclaiming a set of laws, called the Code of Hammurabi (The Code henceforward). The Code was written in the Akkadian language and engraved on black diorite, measuring about two-and-a-quarter meters. The tablet is on display in the Louvre, Paris. The stone carving on which the laws are written was found in 1901-1902 by French archeologists at the Edomite capital Susa which is now part of the Kuzhisthan province in Iran. The Code was determined to be written circa 1780 B.C. Although there are other codes preceding it 2 , The Code is considered the first important legal code known to historians for its comprehensive coverage of topics and wide-spread application. It has been translated and analyzed by historians, legal and theological scholars (Goodspeed, 1902; Vincent, 1904; Duncan, 1904; Pfeiffer, 1920; Driver and Miles, 1952). The Code is wellknown for embodying the principle of lex talionis (“eye for an eye”) which is described as a system of retributive justice. However, The Code is also much more complex than just describing offenses and punishments and not all punishments are of the retributive kind. The Code has great relevance to economists. However, very few studies have been undertaken from an economic or economic thought point of view. The objective of this paper is to explore the content of The Code and extract the implied economic principles.