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How did banking in early nineteenth-century Massachusetts evolve?
Lu provides a compelling narrative about the connection between
inclusive political systems and open access economies,
hypothesizing that entry into banking was firstly made upon
partisan grounds before later becoming open access/free entry. Lu
investigates state level institutional change and studies the
transition to open access from an economic perspective. What was
the relationship between banking and political elites? Why were
elites, who enjoyed privileges under dominant institutions, willing
to dissolve these institutions and eliminate their privileges? The
author provides new insights into American economic history,
explaining how a society moves from limited access to one of
openness.
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