Seminarios académicos y conferencias
Stunted Firms: The Long-Term Impacts of Colonial Taxation
24 agosto 2017 - 17:00 hrs.
Sala de Postgrados, Facultad de Ciencias Económicas y Administrativas UC
Abstract: This paper uses the geocoded 2008 census of Peruvian firms to study how the colonial mita forced labor system (1573–1812) caused long-run impacts on firm investments. Multidimensional regression discontinuity models show lower levels of fixed assets and inventories and a lower likelihood of having a commercial name for firms within mita boundaries. Demographic features in these impacted regions — more education, lower insurance coverage, and lower personal ID registration — are consistent with a lower preference for physical capital and possibly more tax avoidance. A centuries-long disadvantageous tax burden in mita regions is a likely driver of long-term investment impacts.