Hostname: page-component-76fb5796d-zzh7m Total loading time: 0 Render date: 2024-04-26T16:07:28.076Z Has data issue: false hasContentIssue false
  • English
  • Français

Learning and the Creation of Stock-Market Institutions: Evidence from the Royal African and Hudson's Bay Companies, 1670–1700

Published online by Cambridge University Press:  03 March 2009

Ann M. Carlos ,
Jennifer Key  and
Jill L. Dupree
Ann M. Carlos
Affiliation:
Department of Economics, University of Colorado, Boulder, CO 80309
Jennifer Key
Affiliation:
Department of Economics, University of Colorado, Boulder, CO 80309
Jill L. Dupree
Affiliation:
Department of Economics, College of the Holy Cross, Worcester, MA.
Get access Rights & Permissions [Opens in a new window]

Abstract

In this article we use a unique source—a 30-year time series of the share transactions of two joint-stock companies—to examine the growth of the London capital market prior to and immediately after the Glorious Revolution. We argue that the London experience with open capital markets was not solely the result of 1689. Rather it was the learning by private individuals and goldsmith bankers which took place in the decades before 1689 that allowed the market to take full advantage of the property rights changes which occurred with the change in regimes.

Type
Articles
Information
The Journal of Economic History , Volume 58 , Issue 2 , June 1998 , pp. 318 - 344
Copyright
Copyright © The Economic History Association 1998

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Bowen, H.V. “Investment and Empire in the Later Eighteenth Century: East India Stockholding, 1756–1791.” Economic History Review 42, no. 2 (1989): 186–206.CrossRefGoogle Scholar
Brewer, John. Sinews of Power: War Money and the English State, 1688–1783. London: Unwin, 1989.Google Scholar
Carlos, Ann M., and Kruse, Jamie Brown. “The Decline of the Royal African Company: Fringe Firms and the Role of the Charter.” Economic History Review XLIX, no.2 (1996): 295–317.Google Scholar
Carlos, Ann M., and van Stone, Jill. “Stock Transfer Patterns in the Hudson's Bay Company: A study of the English Capital Market in Operation, 1670–1730.” Business History 38, no. 2 (1996): 15–39.CrossRefGoogle Scholar
Carlos, Ann M., and Key, Jennifer. “The Firm as a Nexus of Contracts.” Working Paper, Department of Economics, University of Colorado, 1997.Google Scholar
Carruthers, Bruce G.City of Capital: Politics and Markets in the English Financial Revolution. Princeton: Princeton University Press, 1996.CrossRefGoogle Scholar
Davies, K. G. “Joint-Stock Investment in the Later Seventeenth Century.” Economic History Review 4 no. 3, (1952): 283–301.CrossRefGoogle Scholar
Davies, K. G.The Royal African Company. London: Longmans, Green and Co., 1957.Google Scholar
De, Krey Gary Stuart. A Fractured Society: The Politics of London in the First Age of Party 1688–1715. Oxford: Clarendon Press, 1985.Google Scholar
Devereux, Michael B., and Smith, Gregor W.. “International Risk Sharing and Economic Growth.” International Economic Review 35, no. 4. (1994): 535–50.CrossRefGoogle Scholar
Dickson, P. G. M.The Financial Revolution in England. London: Macmillan, 1967.Google Scholar
Eltis, D. “The Relative Importance of Slaves in the Atlantic Trade of Seventeenth Century Africa.” Journal of African History 35 (1994): 337–49.CrossRefGoogle Scholar
Hening, B.D., ed. The House of Commons 1660–1690. London: Secker and Warburg, 1983. 3 vols.Google Scholar
Hudson's Bay Company Records. Microfil. Public Archives of Canada. Ottawa, Ontario, Canada.Google Scholar
Kindleberger, Charles P. “Financial Institutions and Economic Development: A Comparison son of Great Britain and France in the Eighteenth and Nineteenth Centuries.” Explorations in Economic History 21, no. 1 (1984): 103–124.CrossRefGoogle Scholar
Neal, Larry. The Rise of Financial Capitalism. Cambridge: Cambridge University Press, 1990.Google Scholar
North, Douglass C., and Weingast, Barry R.. “Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth Century England.” this JOURNAL 49, no. 4 (1989): 803–32.Google Scholar
Obstfeld, Maurice. “Risk-Taking, Global Diversification and Growth.” American Economic Review 44, no. 5 (1994): 1310–29.Google Scholar
Quinn, Stephen. “Innovations in Network Structure: The Rise of London as a Financial Center.” Working Paper, Department of Economics, Texas Christian University, 1997.Google Scholar
Rich, E. E.Hudson's Bay Company, 1670–1870. New York: Macmillan, 1960. 3 vols. Royal African Company Records. Public Record Office. Kew, England.Google Scholar
Scott, William Robert. The Constitution and Finance of English, Scottish and Irish Joint-Stock Companies to 1720. New York: Peter Smith, 1951. 3 vols.Google Scholar
Smith, Adam. The Wealth of Nations. 1776. Reprint, Indianapolis: Liberty Classics, 1976.Google Scholar