Jump-starting stock markets in transition economies has proved difficult. These countries lack effective legal governance structures and face severe information problems. Yet not all financial markets failed because of adverse conditions. Using China's initial stock market development as a case...

We examine the effect of initial legal traditions on constitutional stability in the American states. Ten states were initially settled by France, Spain, or Mexico and had developed civil law legal systems at the time of American acquisition. Although Louisiana retained civil law, the remaining...