LEGAL ORIGINS, POLITICS, AND MODERN STOCK MARKETS

摘要: Legal origin--civil vs. common law--is said in much modern economic work to determine the strength of financial markets and structure corporate ownership, even world's richer nations. The main means are thought lie how investor protection property connect civil law legal origin. But, I show here, although stockholder protection, rights, their supporting institutions quite important, origin is not foundation. Modern politics an alternative explanation for divergent ownership structures differing depths securities Some legislatures respect stock markets, instructing regulators promote markets; some do not. Brute facts twentieth century--the total devastation many key nations, wrecking prior institutions--predict postwar markets' well tie closely divergences policies richest Nearly every core nation suffered military invasion occupation kinds systemic shocks that destroy strong institutions--while no collapsed under kind catastrophe. interests ideologies thereafter dominated nations those nations' basic tasks (such as reconstruction many) varied over last half century, these differences made one collection amenable another indifferent or antagonistic. These political economy ideas better positioned than concepts explain importance wealthy West. INTRODUCTION Do origins--common law--largely whether capital develop strongly? Many finance economists have concluded, explosion influential articles past decade, indeed central. (1) Common effectively protect outside shareholders, it said; ones This capacity shareholders explains why rich while others' weak. stakes aren't just academic. developing world international agencies told "transplanting correct code (i.e., law) will enhance development." (2) new origins view has circles elbowed aside function propels markets: when technology demands large enterprises must be gathered from sources, this process works policymakers private players build support (3) enough polity does attack finance. element--that national can confine policymakers' institution-building--has increasingly found theoretical evidence. Here assess which approach--legal economy--is bet future research policy theories into systematic experienced turmoil early century. Differences West second century could due more consequences earlier World Wars subtle between law. There's a powerful normative reason get assessment right. academics see propelling development. Thus, if we understand what makes engineer growth, at least provide necessary tool. …