Palace economy

A palace economy, also called redistributive, ie redistributive palace economy is a form of centralized coordination of labor societies and thus the precursor of the centrally planned economy. In the palace, the central management of the economy takes place: specialists are responsible for the collection of taxes and the distribution of goods through the palace.

The palace economy is relatively well documented for the ancient civilizations of the Near East and the eastern Mediterranean, such as the Mycenaean culture. The features of the center of a palace economy are:

• Residence of the upper class (Palace as a residence of the King and his administration, the temple as an official site of the High Priest and his priesthood )
• Justification of the rule of the king against its own people, and intimidation of members of other societies ( as a monumental palace representational )
• Steering the whole economy and the center of the long-distance trade with other societies
• For the production of goods houses a palace craftsmen and workshops
• As a collection and distribution center of goods a palace requires large storage rooms