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Choice of Enterprise Form: Spain, 1886-1936

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  • Guinnane, Timothy
  • Martinez Rodriguez, Susana

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.

Suggested Citation

  • Guinnane, Timothy & Martinez Rodriguez, Susana, 2015. "Choice of Enterprise Form: Spain, 1886-1936," Center Discussion Papers 206854, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:206854
    DOI: 10.22004/ag.econ.206854
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    3. Guinnane, Timothy W. & Schneebacher, Jakob, 2020. "Enterprise form: Theory and history," Explorations in Economic History, Elsevier, vol. 76(C).
    4. Zanette, Maria Carolina & Scaraboto, Daiane, 2019. "“To Spanx or not to Spanx”: How objects that carry contradictory institutional logics trigger identity conflict for consumers," Journal of Business Research, Elsevier, vol. 105(C), pages 443-453.

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    More about this item

    Keywords

    Financial Economics; Industrial Organization; Institutional and Behavioral Economics; International Development;
    All these keywords.

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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