Working Paper: NBER ID: w20231
Authors: Naomi R. Lamoreaux
Abstract: The legal rules governing businesses' organizational choices have varied across nations along two main dimensions: the number of different forms that businesses can adopt; and the extent to which businesses have the contractual freedom to modify the available forms to suit their needs. Until the late twentieth century, businesses in the U.S. had a narrower range of forms from which to choose than their counterparts in these other countries and also much less ability to modify the basic forms contractually. This article uses the case of Pennsylvania to argue that the sources of this "American exceptionalism" reside in the interplay between the early achievement of universal (white) manhood suffrage and elite efforts to safeguard property rights.
Keywords: No keywords provided
JEL Codes: K2; N41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| early achievement of universal white manhood suffrage (N91) | significant restrictions on corporate charters (G38) |
| elite fears of losing property rights (P14) | restrictive nature of corporate laws (G38) |
| democratic pressures + elite interests (D72) | legal environment (K20) |
| political dynamics (D72) | legal outcomes (K40) |