The economic effects of improving investor rights in Portugal

Abstract

Macroeconomics, Investment rate, Relative prices, Resource misallocation, Investor protection, Optimal contracts, Portugal, E22, F43, G32, G38, O16, O17, O41,

Firm size distribution under horizontal and vertical innovation

“…A fall in the variance of (log) size measured as employment or sales per rm over time is in line with the evidence reported by Castro and Clementi (2009), who analyse the same database as Cabral and Mata (2003), for the period 1980-2005. Moreover, if we consider the variance adjusted by the average rm size and compute the coecient of variation, we nd a monotonically decreasing time path whatever the number of cohorts. Thus, it is clear that our FSD is not stationary, even if we consider normalised rm sizes.…”

“…8 To sum up, although we are able to obtain a rather stable total FSD in terms of skewness and upper-tail weight, in line with the empirical evidence presented by Cabral and Mata (2003) and others, our theoretical result is also able to address complementary empirical evidence that points to a FSD subtly evolving over time, as shown by Castro and Clementi (2009).…”

“…regards empirical evidence, an upward trend in average sales per rm and a downward trend in the variance of sales per rm over the long run are reported by, respectively, Jovanovic (1993) and Castro and Clementi (2009).…”

Productivity Growth and Capital Flows: The Dynamics of Reforms

“…The unit of the horizontal axis is years. Castro and Clementi (2009) also document the large-scale reform in Portugal as it joined the European Union in 1986. In addition to reducing idiosyncratic taxes and subsidies, Portugal rewrote its century-old commercial code to enhance investor protection.…”