Ian Malcolm David Little
- Published in print:
- 2002
- Published Online:
- August 2004
- ISBN:
- 9780199257041
- eISBN:
- 9780191601293
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199257043.003.0011
- Subject:
- Economics and Finance, Public and Welfare
Government can and should be actively concerned with the relief of poverty. But there is no ethical principle defining the proper distribution of wealth between occupational or other social groups, ...
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Government can and should be actively concerned with the relief of poverty. But there is no ethical principle defining the proper distribution of wealth between occupational or other social groups, nor can it be democratically determined in an orderly manner. Distributional coalitions, such as trade unions, employers, and professional associations, must be discouraged, with the distribution of wealth between groups determined by competition. Where politics is dominated by distributional issues, democracy is likely to break down, and often has. The related subjects of rent seeking and corruption are discussed.Less
Government can and should be actively concerned with the relief of poverty. But there is no ethical principle defining the proper distribution of wealth between occupational or other social groups, nor can it be democratically determined in an orderly manner. Distributional coalitions, such as trade unions, employers, and professional associations, must be discouraged, with the distribution of wealth between groups determined by competition. Where politics is dominated by distributional issues, democracy is likely to break down, and often has. The related subjects of rent seeking and corruption are discussed.
John Kay
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780198292227
- eISBN:
- 9780191596520
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198292228.003.0008
- Subject:
- Economics and Finance, Microeconomics
This chapter describes financial relationships between competitive advantage, economic rent, added value, and various other measures of firm performance.
This chapter describes financial relationships between competitive advantage, economic rent, added value, and various other measures of firm performance.
Luiz Carlos Bresser-Pereira
- Published in print:
- 2004
- Published Online:
- November 2004
- ISBN:
- 9780199261185
- eISBN:
- 9780191601507
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199261180.003.0009
- Subject:
- Political Science, Democratization
The twentieth century was the century of democracy and of globalization. In its first part, it was the century of social rights; in its last quarter, the century of republican rights–the right that ...
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The twentieth century was the century of democracy and of globalization. In its first part, it was the century of social rights; in its last quarter, the century of republican rights–the right that every citizen has that the ires publica, the public patrimony, be not captured by private interests. There are three types of public patrimony: the historical and cultural patrimony, the environment, and the economic patrimony or the public budget.Less
The twentieth century was the century of democracy and of globalization. In its first part, it was the century of social rights; in its last quarter, the century of republican rights–the right that every citizen has that the ires publica, the public patrimony, be not captured by private interests. There are three types of public patrimony: the historical and cultural patrimony, the environment, and the economic patrimony or the public budget.
Milada Anna Vachudova
- Published in print:
- 2005
- Published Online:
- April 2005
- ISBN:
- 9780199241194
- eISBN:
- 9780191602382
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241198.003.0002
- Subject:
- Political Science, European Union
The quality of political competition at the moment of regime change determined whether East European states embarked on a liberal or an illiberal pattern of political change after 1989. It was ...
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The quality of political competition at the moment of regime change determined whether East European states embarked on a liberal or an illiberal pattern of political change after 1989. It was initially determined by the presence or absence of an opposition to communism strong enough to take power in 1989, and secondarily by the presence or absence of a reforming communist party. This chapter makes the theoretical case for why political competition is central to understanding variation in the domestic trajectories of post-communist states. It also presents a model of the causal mechanisms that translate different levels of political competition into liberal and illiberal political outcomes.Less
The quality of political competition at the moment of regime change determined whether East European states embarked on a liberal or an illiberal pattern of political change after 1989. It was initially determined by the presence or absence of an opposition to communism strong enough to take power in 1989, and secondarily by the presence or absence of a reforming communist party. This chapter makes the theoretical case for why political competition is central to understanding variation in the domestic trajectories of post-communist states. It also presents a model of the causal mechanisms that translate different levels of political competition into liberal and illiberal political outcomes.
Milada Anna Vachudova
- Published in print:
- 2005
- Published Online:
- April 2005
- ISBN:
- 9780199241194
- eISBN:
- 9780191602382
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241198.003.0003
- Subject:
- Political Science, European Union
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early ...
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The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early 1990s. The presence or absence of an opposition to communism strong enough to take and hold power in 1989 put the first group of states on the road to liberal democracy, and the second group on the road to illiberal democracy. This chapter compares the two groups of states in three areas: the nature of the opposition to communism and of the regime change in 1989; the political, economic, and national policies of the first post-communist governments; and the quality of the left alternative available to voters after1989.Less
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early 1990s. The presence or absence of an opposition to communism strong enough to take and hold power in 1989 put the first group of states on the road to liberal democracy, and the second group on the road to illiberal democracy. This chapter compares the two groups of states in three areas: the nature of the opposition to communism and of the regime change in 1989; the political, economic, and national policies of the first post-communist governments; and the quality of the left alternative available to voters after1989.
López Ramón and Michael A. Toman
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199298006
- eISBN:
- 9780191603877
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199298009.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines evidence on the four ways in which a nation’s political system and its natural resource use are linked. First, when property rights to resources are weak, competition to acquire ...
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This chapter examines evidence on the four ways in which a nation’s political system and its natural resource use are linked. First, when property rights to resources are weak, competition to acquire resources can be wasteful and characterized by rent-seeking and violent conflict. Weak ownership claims are most likely in countries where the rule of law is not well-established. Second, when a country’s political system is unstable or non-representative, the individual’s claim to a resource stock’s future return can be rendered insecure, reducing the payoff to natural resource conservation. Third, when a country’s natural resources are capable of generating significant rents but institutions of democratic governance and the rule of law are not well-established, corruption by government officials responsible for resource management can encourage rent-seeking, dissipating the benefits those resources would otherwise confer. Fourth, the mix of private vs. public good outputs produced by a nation’s natural resources (e.g., forests) can be affected by its political system. When a country’s government does not represent the interests of the entire population, the use of resource stocks to provide public good amenities, as opposed to salable products, may be under-emphasized.Less
This chapter examines evidence on the four ways in which a nation’s political system and its natural resource use are linked. First, when property rights to resources are weak, competition to acquire resources can be wasteful and characterized by rent-seeking and violent conflict. Weak ownership claims are most likely in countries where the rule of law is not well-established. Second, when a country’s political system is unstable or non-representative, the individual’s claim to a resource stock’s future return can be rendered insecure, reducing the payoff to natural resource conservation. Third, when a country’s natural resources are capable of generating significant rents but institutions of democratic governance and the rule of law are not well-established, corruption by government officials responsible for resource management can encourage rent-seeking, dissipating the benefits those resources would otherwise confer. Fourth, the mix of private vs. public good outputs produced by a nation’s natural resources (e.g., forests) can be affected by its political system. When a country’s government does not represent the interests of the entire population, the use of resource stocks to provide public good amenities, as opposed to salable products, may be under-emphasized.
Yoon Je Cho
- Published in print:
- 1998
- Published Online:
- January 2007
- ISBN:
- 9780198294917
- eISBN:
- 9780191715501
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198294917.003.0007
- Subject:
- Economics and Finance, South and East Asia
This chapter discusses how economic rent was created and distributed in the course of economic development in Korea, focusing on government intervention in the financial market. The Korean experience ...
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This chapter discusses how economic rent was created and distributed in the course of economic development in Korea, focusing on government intervention in the financial market. The Korean experience shows that it is possible for governments to intervene productively and effectively in the early stages of economic development. The balance between the role of government and market forces should reflect the financial market, industrial organization, market structure, and political and international environment facing the country. However, as economic development advances, the role and scope of government intervention must be reappraised with a view towards greater reliance on market forces.Less
This chapter discusses how economic rent was created and distributed in the course of economic development in Korea, focusing on government intervention in the financial market. The Korean experience shows that it is possible for governments to intervene productively and effectively in the early stages of economic development. The balance between the role of government and market forces should reflect the financial market, industrial organization, market structure, and political and international environment facing the country. However, as economic development advances, the role and scope of government intervention must be reappraised with a view towards greater reliance on market forces.
Kaare Strøm, Wolfgang C. Müller, and Torbjörn Bergman
- Published in print:
- 2003
- Published Online:
- January 2005
- ISBN:
- 9780198297840
- eISBN:
- 9780191602016
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019829784X.003.0023
- Subject:
- Political Science, Comparative Politics
In this chapter, we take a closer look at democratic accountability outcomes. The evidence strongly and broadly suggests that cohesive and competitive political parties and governments help reduce ...
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In this chapter, we take a closer look at democratic accountability outcomes. The evidence strongly and broadly suggests that cohesive and competitive political parties and governments help reduce the risks of democratic delegation. Specifically, executive cohesion strongly and significantly reduces the risks of corruption and fiscal indiscipline. Party competition, on the other hand, reduces rent extraction and promotes general satisfaction with democracy. The rest of the chapter reviews the broader lessons of this study, with respect to parliamentary democracy, parliamentary governance, political institutions, and the gap between citizens and their political representatives.Less
In this chapter, we take a closer look at democratic accountability outcomes. The evidence strongly and broadly suggests that cohesive and competitive political parties and governments help reduce the risks of democratic delegation. Specifically, executive cohesion strongly and significantly reduces the risks of corruption and fiscal indiscipline. Party competition, on the other hand, reduces rent extraction and promotes general satisfaction with democracy. The rest of the chapter reviews the broader lessons of this study, with respect to parliamentary democracy, parliamentary governance, political institutions, and the gap between citizens and their political representatives.
Jane Whittle
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198208426
- eISBN:
- 9780191677991
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198208426.003.0007
- Subject:
- History, British and Irish Early Modern History
This introductory chapter sets out the purpose of the book, which is to explore the early beginnings of agrarian capitalism in England. The question of ...
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This introductory chapter sets out the purpose of the book, which is to explore the early beginnings of agrarian capitalism in England. The question of how and why capitalism developed in England has been a source of debate. Several historical sources were used to examine a wide range of topics such as rights to land and the level of rent, the land market and inheritance, the distribution of land and wealth, the landless, wage-earners, rural craftsmen, as well as the labour laws.Less
This introductory chapter sets out the purpose of the book, which is to explore the early beginnings of agrarian capitalism in England. The question of how and why capitalism developed in England has been a source of debate. Several historical sources were used to examine a wide range of topics such as rights to land and the level of rent, the land market and inheritance, the distribution of land and wealth, the landless, wage-earners, rural craftsmen, as well as the labour laws.
Stephen D. Cohen
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195179354
- eISBN:
- 9780199783779
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195179354.003.0014
- Subject:
- Economics and Finance, International
Only the most rabid proponents deny the potential for MNCs and FDI to inflict costs and harm on large numbers of people and countries. This chapter is the equivalent of a law brief, this time ...
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Only the most rabid proponents deny the potential for MNCs and FDI to inflict costs and harm on large numbers of people and countries. This chapter is the equivalent of a law brief, this time one-sidedly expounding on the merits of the opposite side of the case and offering a totally different perspective on how to evaluate FDI and MNCs. Once again, no effort is made to replicate the emphasis in earlier chapters on the need for a balanced, objective approach to a subject dominated by heterogeneity, complexity, and subjectivity. The downsides of MNCs and FDI are discussed in terms of their demonstrable threat to a country's overall economic growth and prosperity as the result of the inherent conflict between their single-minded pursuit of profits and the interests of the host country's population. More specific costs such as intimidation of government officials anxious to promote and retain inward FDI, bribing regulators, tax avoidance, reduced competition in the marketplace including price collusion, diminished union and worker negotiating leverage, increased pollution, and increased capital outflows in the form of profit remittances, are also discussed.Less
Only the most rabid proponents deny the potential for MNCs and FDI to inflict costs and harm on large numbers of people and countries. This chapter is the equivalent of a law brief, this time one-sidedly expounding on the merits of the opposite side of the case and offering a totally different perspective on how to evaluate FDI and MNCs. Once again, no effort is made to replicate the emphasis in earlier chapters on the need for a balanced, objective approach to a subject dominated by heterogeneity, complexity, and subjectivity. The downsides of MNCs and FDI are discussed in terms of their demonstrable threat to a country's overall economic growth and prosperity as the result of the inherent conflict between their single-minded pursuit of profits and the interests of the host country's population. More specific costs such as intimidation of government officials anxious to promote and retain inward FDI, bribing regulators, tax avoidance, reduced competition in the marketplace including price collusion, diminished union and worker negotiating leverage, increased pollution, and increased capital outflows in the form of profit remittances, are also discussed.
Alan D. Morrison and William J. Wilhelm Jr.
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780199296576
- eISBN:
- 9780191712036
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199296576.003.0002
- Subject:
- Economics and Finance, Financial Economics
This chapter discusses the importance of property rights in capitalist economies. It provides a general definition of property, and then discusses the institutions that enforce property rights. It ...
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This chapter discusses the importance of property rights in capitalist economies. It provides a general definition of property, and then discusses the institutions that enforce property rights. It notes that complex property rights may not be enforceable in the courts, and discusses theoretical and empirical research into the extra-legal institutions that are required. The chapter then details the nature of the relational contracts that these institutions support. Finally, it notes the tensions between the State and the extra-legal property rights institutions, and it highlights the danger that successful extra-legal institutions will serve as a focus for State rent-seeking.Less
This chapter discusses the importance of property rights in capitalist economies. It provides a general definition of property, and then discusses the institutions that enforce property rights. It notes that complex property rights may not be enforceable in the courts, and discusses theoretical and empirical research into the extra-legal institutions that are required. The chapter then details the nature of the relational contracts that these institutions support. Finally, it notes the tensions between the State and the extra-legal property rights institutions, and it highlights the danger that successful extra-legal institutions will serve as a focus for State rent-seeking.
John Kay
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198289883
- eISBN:
- 9780191718205
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019828988X.003.0013
- Subject:
- Economics and Finance, Microeconomics
Using examples from supermarket chains, car manufacturers, and banks, this chapter explains how competitive advantage can be quantified in the form of added value or economic rent. It is then ...
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Using examples from supermarket chains, car manufacturers, and banks, this chapter explains how competitive advantage can be quantified in the form of added value or economic rent. It is then demonstrated how added value underpins all the principal measures of corporate performance, including cash flows, accounting profitability, and shareholder value.Less
Using examples from supermarket chains, car manufacturers, and banks, this chapter explains how competitive advantage can be quantified in the form of added value or economic rent. It is then demonstrated how added value underpins all the principal measures of corporate performance, including cash flows, accounting profitability, and shareholder value.
Clark C. Gibson
- Published in print:
- 2005
- Published Online:
- October 2005
- ISBN:
- 9780199278855
- eISBN:
- 9780191602863
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199278857.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter explores the obstacles and possibilities for development at the collective-choice level, and discusses the difficulties most likely to thwart efforts to solve collective-action ...
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This chapter explores the obstacles and possibilities for development at the collective-choice level, and discusses the difficulties most likely to thwart efforts to solve collective-action situations in recipient countries, including how the reality of weak, bad, or missing institutions hampers development efforts. It unpacks the challenges arising at the collective-choice level by emphasizing the problems of information and motivation. Questions are posed about development aid in an effort to improve its design and outcome.Less
This chapter explores the obstacles and possibilities for development at the collective-choice level, and discusses the difficulties most likely to thwart efforts to solve collective-action situations in recipient countries, including how the reality of weak, bad, or missing institutions hampers development efforts. It unpacks the challenges arising at the collective-choice level by emphasizing the problems of information and motivation. Questions are posed about development aid in an effort to improve its design and outcome.
Peter Kemp (ed.)
- Published in print:
- 2007
- Published Online:
- March 2012
- ISBN:
- 9781861347541
- eISBN:
- 9781447302506
- Item type:
- book
- Publisher:
- Policy Press
- DOI:
- 10.1332/policypress/9781861347541.001.0001
- Subject:
- Social Work, Social Policy
Housing allowances have become increasingly important policy instruments in the advanced welfare states. Operating at the interface between housing and social security policy, they provide ...
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Housing allowances have become increasingly important policy instruments in the advanced welfare states. Operating at the interface between housing and social security policy, they provide means-tested assistance with housing costs for low income households. In the present era of fiscal austerity, such schemes are seen by many governments as a more efficient way to help tenants with rent controls or ‘bricks and mortar’ subsidies to landlords. Yet as the contributions to this collection show, housing allowances are not without problems of their own, especially in relation to housing consumption and work incentives. This book examines income-related housing allowance schemes in advanced welfare states, as well as in transition economies of central and eastern Europe. Drawing on experiences in ten countries, including Britain, Sweden, Germany, Australia, and the USA, it presents new evidence on the origins and design of housing allowances, their role within housing and social security policy, their impact on affordability, current policy debates and recent reforms.Less
Housing allowances have become increasingly important policy instruments in the advanced welfare states. Operating at the interface between housing and social security policy, they provide means-tested assistance with housing costs for low income households. In the present era of fiscal austerity, such schemes are seen by many governments as a more efficient way to help tenants with rent controls or ‘bricks and mortar’ subsidies to landlords. Yet as the contributions to this collection show, housing allowances are not without problems of their own, especially in relation to housing consumption and work incentives. This book examines income-related housing allowance schemes in advanced welfare states, as well as in transition economies of central and eastern Europe. Drawing on experiences in ten countries, including Britain, Sweden, Germany, Australia, and the USA, it presents new evidence on the origins and design of housing allowances, their role within housing and social security policy, their impact on affordability, current policy debates and recent reforms.
Gary D. Libecap
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199656202
- eISBN:
- 9780191742149
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199656202.003.0013
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines why property rights that directly address externalities and link individual incentives with social objectives for resource use are not the first policy response to open access. ...
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This chapter examines why property rights that directly address externalities and link individual incentives with social objectives for resource use are not the first policy response to open access. Indeed, the creation of property rights often comes late in the experience of rent dissipation. This is despite the impressive record of success in addressing open access losses. The chapter argues that they are adopted only when their costs are offset by the aggregate rents that are saved from overexploitation. Because the transaction costs involved in assigning, measuring, and enforcing formal property rights can be large, the value of the resource and the nature of uncertainty determine the optimal time for introducing them. Crises that suddenly and sharply raise benefits and lower uncertainty, speed this process.Less
This chapter examines why property rights that directly address externalities and link individual incentives with social objectives for resource use are not the first policy response to open access. Indeed, the creation of property rights often comes late in the experience of rent dissipation. This is despite the impressive record of success in addressing open access losses. The chapter argues that they are adopted only when their costs are offset by the aggregate rents that are saved from overexploitation. Because the transaction costs involved in assigning, measuring, and enforcing formal property rights can be large, the value of the resource and the nature of uncertainty determine the optimal time for introducing them. Crises that suddenly and sharply raise benefits and lower uncertainty, speed this process.
Mushtaq H. Khan and Stephanie Blankenburg
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199235261
- eISBN:
- 9780191715617
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199235261.003.0013
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter discusses the viability and effectiveness of industrial policies for catching up in relation to state-led management of rents throughout the process of social transformation. A crucial ...
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This chapter discusses the viability and effectiveness of industrial policies for catching up in relation to state-led management of rents throughout the process of social transformation. A crucial point is that “progressive” rent-management strategies aimed at technology acquisition and economic development are politically constrained by power constellations within society and their relations with the State itself. Essential for the explanation of success and failure of industrial policy strategies in late developers is therefore the compatibility of industrial and technological strategies with the distribution of political power. The chapter discusses a number of policy variants in different Asian countries and in Latin America, explaining how different internal political configurations can account for different outcomes of apparently similar industrial policies both within and between these regions.Less
This chapter discusses the viability and effectiveness of industrial policies for catching up in relation to state-led management of rents throughout the process of social transformation. A crucial point is that “progressive” rent-management strategies aimed at technology acquisition and economic development are politically constrained by power constellations within society and their relations with the State itself. Essential for the explanation of success and failure of industrial policy strategies in late developers is therefore the compatibility of industrial and technological strategies with the distribution of political power. The chapter discusses a number of policy variants in different Asian countries and in Latin America, explaining how different internal political configurations can account for different outcomes of apparently similar industrial policies both within and between these regions.
W. Max Corden
- Published in print:
- 1997
- Published Online:
- November 2003
- ISBN:
- 9780198775348
- eISBN:
- 9780191715471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198775342.003.0007
- Subject:
- Economics and Finance, International
Analyses the effects of protection on domestic monopoly profits, allows for economies of scale, and analyses the X‐efficiency effects of protection, rent‐seeking, and various kinds of dumping.
Analyses the effects of protection on domestic monopoly profits, allows for economies of scale, and analyses the X‐efficiency effects of protection, rent‐seeking, and various kinds of dumping.
Jean‐Jacques Laffont
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199248681
- eISBN:
- 9780191596575
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199248680.003.0005
- Subject:
- Economics and Finance, Microeconomics
This chapter considers a variety of issues in industrial policy by modelling the trade‐off between informational rents and efficiency distortions. It is shown that political imperfections affect ...
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This chapter considers a variety of issues in industrial policy by modelling the trade‐off between informational rents and efficiency distortions. It is shown that political imperfections affect regulatory rules and that the ownership structure of firms matters. Price distortions and the rationale behind prohibiting price discrimination are analysed and the models are extended to include the possibility of lump sum transfers by the government.Less
This chapter considers a variety of issues in industrial policy by modelling the trade‐off between informational rents and efficiency distortions. It is shown that political imperfections affect regulatory rules and that the ownership structure of firms matters. Price distortions and the rationale behind prohibiting price discrimination are analysed and the models are extended to include the possibility of lump sum transfers by the government.
Howard Bodenhorn
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195147766
- eISBN:
- 9780199832910
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195147766.003.0002
- Subject:
- Economics and Finance, Economic History
Bank chartering in early America was high‐stakes politics. Legislators were asked to create corporations with governance structures and corporate hierarchies that would be accountable and ...
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Bank chartering in early America was high‐stakes politics. Legislators were asked to create corporations with governance structures and corporate hierarchies that would be accountable and transparent, yet profitable. While the chartering system in some states was prone to corruption and rent‐seeking, corporate charters created firms that mitigated the principal‐agent problem. Internal structures aligned the incentives of shareholders and managers.Less
Bank chartering in early America was high‐stakes politics. Legislators were asked to create corporations with governance structures and corporate hierarchies that would be accountable and transparent, yet profitable. While the chartering system in some states was prone to corruption and rent‐seeking, corporate charters created firms that mitigated the principal‐agent problem. Internal structures aligned the incentives of shareholders and managers.
Geoffrey Jones
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780199249992
- eISBN:
- 9780191596483
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199249997.003.0006
- Subject:
- Economics and Finance, Economic History
This chapter shows how British trading companies built extensive and complex business groups to facilitate diversification. They employed a variety of institutional and contractual modes—including ...
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This chapter shows how British trading companies built extensive and complex business groups to facilitate diversification. They employed a variety of institutional and contractual modes—including contracts, equity, debt, cross‐directorships, and repeated trading transactions—and inside them, there were flows of managerial, financial, and trading information and relationships. The network‐style business groups contained multiple conflicts of interest, but rent‐seeking behaviour was constrained, and they had some positive benefits.Less
This chapter shows how British trading companies built extensive and complex business groups to facilitate diversification. They employed a variety of institutional and contractual modes—including contracts, equity, debt, cross‐directorships, and repeated trading transactions—and inside them, there were flows of managerial, financial, and trading information and relationships. The network‐style business groups contained multiple conflicts of interest, but rent‐seeking behaviour was constrained, and they had some positive benefits.
