Partisan Politics and Institutional (Re)Creation: Locating and Explaining the Origins of Modern Finance Capitalism
West European Politics, 2010, Vol. 33, No. 6: 1187-1213.
31 Pages Posted: 24 Sep 2007 Last revised: 23 Oct 2012
Date Written: January 1, 2010
Abstract
Why do some countries rely more heavily on equities markets, while others depend more on commercial banking? Analyses of the origins of contemporary capitalist institutions usually look back to the late nineteenth and early twentieth century. However, this paper demonstrates that financial institutions - regarded as central to the way capitalist systems are organized - changed radically in the mid-twentieth century in many countries. This paper argues that government partisanship that is sensitive to these formative moments of institutional (re)creation can better account for their modern manifestation than prominent alternative explanations. A new measure of partisanship that is sensitive to these institutional transformations is presented. Case studies on Germany and France offer evidence consistent with this argument.
Keywords: Politics, Finance, Europe, Germany France
JEL Classification: P16, P5, N2, J5
Suggested Citation: Suggested Citation
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