INTRODUCTION I CONSIDERING LEGAL ORIGINS A The Classic Differences B Legal Origins and Financial Progress i Protecting M inority Stockholders via Fiduciary Duties 2 Overregulating Financial M arkets C The Differences Erode D Can Legal Origin Anchor Law as the Primary Cause? II STATE POWER AND LEGAL ORIGIN IN THE TWENTIETH CENTURY A The Rise of the Regulatory State in the Twentieth Century B The Power of the State i A Timeline of State Power in the Twentieth Century 2 Timelines of Government Budgets, Government Transfers, and Financial M arkets 3 Regulating Financial and Labor M arkets 4 Instruments and Power C Which System Regulates Securities M arkets M ore? i Regulatory Budgets 2 T he S E C 4 II REEXAMINING THE DATA: DO POLITICAL ECONOMY DIFFERENCES BETTER EXPLAIN FINANCIAL DIFFERENCES? A Reexamining Legal Origins as Predicting Ownership Separation in the W ealthy W est i Corporate Law, Legal Origin, and Legislative Policy 2 The World W ars 3 Invasions and Military Occupation: The Tw
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