How do credit shocks affect firms’ employment adjustment and exit? How does the propagation of these shocks depend on labor rigidities? Do credit shocks reinforce or hinder productivity-enhancing reallocations in the real economy? According to the classic Schumpeterian view, shocks should bring about creative destruction and a “cleansing eﬀect” on the real economy. However, financial… Continue reading Finance and labor rigidity in Portugal
The age composition of the population in higher income countries has changed considerably. Signs of population aging have prompted concerns about its effects on the cost of health care systems. As people are living longer are they living healthier? On the one hand, the hypothesis of life extension, proposes that we are living longer but… Continue reading Aging and the compression of disability
In the 2017 Special Eurobarometer on Corruption, 92% of Portuguese respondents stated that corruption is a widespread problem in their country (EU average: 68%) and 70% of businesses agreed that the only way to succeed is to have political connections. At the economic level, and since the beginning of the 21st century, economic growth has… Continue reading Corruption and economic growth: the case of Portugal
In Portugal, in 1940, only 40% of the population knew how to read. The causes of this backwardness, as well as the the rapid increase of literacy rates in the subsequent decades have been the focus of considerable research, and some controversy. This paper measures the contribution of the increase in the number of primary… Continue reading Literacy and primary school expansion in Portugal: 1940–62
The euro area sovereign debt crisis exposed the linkages between banks and sovereigns and their adverse implications. In 2010, when sovereign spreads rose in several countries, tensions swiftly transmitted to the banking sector, uncovering the intertwining of banks’ and the respective sovereigns’ creditworthiness. Against a backdrop of already fragile fiscal positions, public finances in some… Continue reading Sovereign exposures in the Portuguese banking system
This paper reports on a large-scale (randomized) field experiment designed to assess ATMs’ (automatic teller machines) capacity to “get out the vote”, an unexploited method of voter mobilization. The experimental design used the full universe of functioning ATMs in Portugal, which benefits from a sophisticated world class system with wide national coverage. The experiment randomly… Continue reading Can ATMs get out the vote?
Multinational enterprises are a significant contributor to the world economy as evidenced by indicators of foreign affiliate activity such as sales, employment, exports, value added and assets. This paper studies their role as agents of competition using the Portuguese economy. Multinational activities might affect the host country industry dynamics due two main opposing effects. On… Continue reading Does foreign presence induce host country firms’ exit? The case of Portugal