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Firm Size and Public Investment Multipliers : Micro Evidence from Peru (anglais)

This paper examines how the concentration of large firms influences the fiscal multiplier effects of public investment in transport infrastructure. Using data from 1,891 Peruvian municipalities and firm-level information, the analysis exploits a quasi-experimental setting stemming from an exogenous change in the Municipality Compensation Fund in 2010, Peru's primary fiscal transfer mechanism from the central government to subnational authorities...
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