We develop a model of endogenous lobby formation in which wealth inequalityand political accountability undermine entry and financial development. In-cumbents seek a low level of effective investor protection to prevent potentialentrants from raising capital. They succeed because they can...

In the literature concerning the geography of new firm formation, explanatory variables pertaining to industrial organization and political economy are seldom considered. Such variables were thus included when investigating what conditions influenced entry of Swedish limited liability firms...