Choice of Enterprise Form: Spain, 1886-1936

64 Pages Posted: 30 Jun 2015 Last revised: 14 Jul 2015

See all articles by Timothy W. Guinnane

Timothy W. Guinnane

Yale University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Susana Martínez-Rodríguez

Universidad de Murcia

Date Written: June 2015

Abstract

Economists have long neglected study of an important contractual decision, a firm’s choice of legal form. Enterprise form shapes the relations among a firm’s owners as well as many features of a firm’s interactions with the rest of the economy. Using unusual firm-level data on Spain 1886-1936, we estimate nested logit models of the determinants of enterprise form choice. In 1919, Spain introduced a new enterprise form that compromised between partnerships and corporations, and displaced larger partnerships and smaller corporations. This Sociedad de Responsabilidad Limitada was especially important for small and median-sized enterprises whose owners were not related.

Keywords: Law and finance, law and economics, legal form of enterprise, Spanish economic history, limited partnership, limited-liability company

JEL Classification: K20, N43, N44

Suggested Citation

Guinnane, Timothy W. and Martínez- Rodríguez, Susana, Choice of Enterprise Form: Spain, 1886-1936 (June 2015). Yale University Economic Growth Center Discussion Paper No. 1049, Available at SSRN: https://ssrn.com/abstract=2624746 or http://dx.doi.org/10.2139/ssrn.2624746

Timothy W. Guinnane (Contact Author)

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States
(203) 432-3616 (Phone)
(203) 432-3898 (Fax)

HOME PAGE: http://sites.google.com/site/timothywguinnanec/

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Susana Martínez- Rodríguez

Universidad de Murcia ( email )

Avda Teniente Flomesta, 5
Campus de Espinardo
Murcia, Murcia 30009
Spain

HOME PAGE: http://www.susanamartinezrodriguez.es/

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