Life-cycle consumption in Portugal

How does personal consumption evolve over the life-cycle? According to the permanent income/life-cycle theory of consumption, primarily associated with Milton Friedman and Franco Modigliani, the answer to this question is that consumers try to smooth consumption over time, with significant adjustments occurring only in the event of permanent shocks to income. Empirical studies of consumption… Continue reading Life-cycle consumption in Portugal

Non-performing loans and bank lending: Evidence for Portugal

In the wake of the international financial crisis and the sovereign debt crises there has been a pronounced and increase of non-performing loans (NPLs) with the potential to impact banks’ supply of credit and ultimately economy-wide growth. This is a relevant topic in many European Countries, including Portugal, where in mid-2016 NPLs accounted at one… Continue reading Non-performing loans and bank lending: Evidence for Portugal

Reducing corporate taxes triggers high-quality entrepreneurship

This paper investigates the impact of corporate taxes on entrepreneurial activity using a quasi-natural experiment in Portugal. Before 2001, the corporate tax rate levied on start-ups in Portugal was 34%. The “Portuguese Tax Benefits for Inland Regions” (Benefícios Fiscais à Interioridade) implemented in 2001 reduced the corporate tax rate to 25% for all start-ups located… Continue reading Reducing corporate taxes triggers high-quality entrepreneurship

Residential price premiums for energy efficiency

This paper addresses the question of whether increased energy efficiency, as measured by the Energy Performance Certificate (EPC), has an impact on the transaction price of residential properties in Portugal. The investigation of the relationship between the EPC label and residential property prices is carried out through the econometric estimation of an hedonic price model,… Continue reading Residential price premiums for energy efficiency