Revolution, restoration, and debt repudiation: The jacobite threat to England's institutions and economic growth

This study provides an empirical test of North and Weingast's theory of Bri tish capital-market development after the Glorious Revolution. The evidence is consistent with the hypotheses that institutional innovation in the 169 0s led to the dramatic growth in London capital markets, and that threats t o these institutions caused financial turmoil. We also find the economic mo tivation for these innovations to be consistent with the work of Ekelund an d Tollison.