The Beginnings of MBOs: England during the Industrial Revolution.
We compare the financial architecture of agricultural Enclosures in England in the eighteenth century to the financial architecture of modern MBOs. We show that the ex ante financial structures of Enclosures and MBOs were extremely similar to one another, as were the ex post financial structures and the transition process, particularly in relation to the role of leverage. Enclosures were economically much more important in England than MBOs are in the modern US economy. The local availability of leverage from banks was the primary determinant of the pattern of Enclosures.
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