Financial Contracts and the Political Economy of Investor Protection
研究投资者保护与经济发展在政治经济学模型中的联合动态，发现投资者保护水平由个人净资产和创业预期回报决定，多数投票制下的政策结果与跨国跨期差异一致。
This paper studies the joint dynamics of investor protection and economic development in a political economy model with capital accumulation and occupational choice. Less investor protection implies higher costs of external financing for entrepreneurs. This excludes poorer agents from entrepreneurship, increasing the profits of the remaining entrepreneurs. The main determinants of investor protection policy preferences are the agent's net worth and the expected return from entrepreneurship. When the policy is chosen by the simple majority rule, the model generates several implications consistent with the observed variation of investor protection over time and across countries.