Partnership law and credit availability
By: Howard Bodenhorn
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16689; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16689.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Legal and economic historians now emphasize the centrality of organizational law in determining the contractual boundaries of the firm.  Nineteenth-century US law recognized a small set of firm types - proprietorship, partnership and corporation - and enforced the creditor rights and priorities associated with them.  This paper investigates how those creditor rights and priorities influenced the availability of credit.  Using a unique data set from the nineteenth century United States and borrower fixed effects, I find that partnerships paid more for credit than proprietorships.  The interest rate disadvantage for partnerships was offset by their ability to finance larger and longer-horizon entrepreneurial ventures"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 4/19/2011.

Includes bibliographical references.

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