The Portuguese interbank money market during the subprime crisis and sovereign debt crisis

Money markets were severely impaired by the financial crisis and subsequent sovereign debt crisis. During the summer of 2007, BNP Paribas suspended redemptions for three investment funds due to the uncertainty regarding structured products. This event triggered the first stage of the financial crises in the euro area and linked it to the subprime mortgage… Continue reading The Portuguese interbank money market during the subprime crisis and sovereign debt crisis

Sorry, we’re closed: loan conditions when bank branches close and firms transfer to another bank

Using a dataset with information on new loans granted in Portugal, we find that when firms switch to a new bank they are able to obtain lower interest rates. This result is in line with previous findings in the literature. However, the existing literature fails to explain which of two competing explanations drive these results.… Continue reading Sorry, we’re closed: loan conditions when bank branches close and firms transfer to another bank

Productivity and Organization in Portuguese Firms

Firms are extremely heterogeneous in their ability to transform a combination of inputs, like capital and labor, into the goods they decide to produce. One can point to many potential sources of heterogeneity and changes in productivity. Some of these sources are exogenous to a firm’s actions and can be most simply modeled as idiosyncratic… Continue reading Productivity and Organization in Portuguese Firms

Renegotiation of Public-Private Partnerships

Over the last decades, Public-Private Partnerships (PPPs) have become a popular means for governments to build and maintain large infrastructure and public services. Portugal has used PPPs intensively (by 2011, it was the European country with the highest investment in PPPs as a % of GDP), mainly for highways. This paper raises the issue of… Continue reading Renegotiation of Public-Private Partnerships