Nobody’s gonna slow me down? The effects of a transportation cost shock on firm performance and behavior
The authors study the firm-level responses to a substantial increase in transportation costs in the wake of a quasi-experiment that introduced tolls in a subset of Portuguese highways. Exploiting a unique dataset encompassing the universe of Portuguese private firms, the authors find that the introduction of tolls caused a substantial decrease in turnover (−10.2%) and productivity (−4.3%) in treated firms vis-à-vis firms in the comparison group. In response to the tolls, firms substantially cut employment-related expenses and purchases of other inputs. Labor costs were reduced by both employment cuts and a decrease in average wages. While firms did not increase inventory, there is some evidence for increased firm exit, in particular by firms in tradables sectors.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/00941190
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Supplemental Notes:
- © 2023 The Author(s). Published by Elsevier Inc. Abstract reprinted with permission of Elsevier.
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Authors:
- Branco, Catarina
- Dohse, Dirk C
- Pereira dos Santos, João
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0000-0003-3291-554X
- Tavares, José
- Publication Date: 2023-7
Language
- English
Media Info
- Media Type: Web
- Features: Appendices; Figures; References; Tables;
- Pagination: 103569
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Serial:
- Journal of Urban Economics
- Volume: 136
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 0094-1190
- Serial URL: http://www.sciencedirect.com/science/journal/00941190
Subject/Index Terms
- TRT Terms: Costs; Economic impacts; Employee compensation; Layoffs; Private enterprise; Tolls
- Geographic Terms: Portugal
- Subject Areas: Economics; Highways;
Filing Info
- Accession Number: 01885075
- Record Type: Publication
- Files: TRIS
- Created Date: Jun 18 2023 6:12PM