Benavente H., José Miguel; Bravo Ortega, Claudio; … - National Bureau of Economic Research - 2024
We analyze how expropriation risk reduces incentives for innovation and reallocates resources from the innovative … in the presence of expropriation risks. Empirical analyses, based on a LASSO Instrumental Variable approach and a novel … comprehensive dataset spanning nearly two decades, confirm our theoretical predictions. We find robust evidence that expropriation …