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Improving public equity markets? No pain, no gain

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  • Kartashova, Katya

Abstract

This paper uses an open-economy extension of Angeletos (2007) to study the effects of reducing public equity costs. The experiment is disciplined with firm-level and aggregate data for Ecuador and Chile. Lower equity costs improve aggregates, but entrepreneurs suffer a loss.

Suggested Citation

  • Kartashova, Katya, 2018. "Improving public equity markets? No pain, no gain," Economics Letters, Elsevier, vol. 162(C), pages 69-72.
    • Handle: RePEc:eee:ecolet:v:162:y:2018:i:c:p:69-72
    DOI: 10.1016/j.econlet.2017.10.005
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    Cited by:

    1. Katya Kartashova, 2014. "Private Equity Premium Puzzle Revisited," American Economic Review, American Economic Association, vol. 104(10), pages 3297-3334, October.

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    More about this item

    Keywords

    Financial development; Incomplete markets; Private equity; Public equity;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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