Property Rights and Finance

S-Tier
Journal: American Economic Review
Year: 2002
Volume: 92
Issue: 5
Pages: 1335-1356

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Which is the tighter constraint on private sector investment: weak property rights or limited access to external finance? From a survey of new firms in post-communist countries, we find that weak property rights discourage firms from reinvesting their profits, even when bank loans are available. Where property rights are relatively strong, firms reinvest their profits; where they are relatively weak, entrepreneurs do not want to invest from retained earnings.

Technical Details

RePEc Handle
repec:aea:aecrev:v:92:y:2002:i:5:p:1335-1356
Journal Field
General
Author Count
3
Added to Database
2026-01-25