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One of Man’s Greatest Inventions? Historical Insights into Limited Liability

Project description

A closer look at limited liability

As a legal structure, limited liability has been described as one of the greatest inventions of modern economics. On the positive side, it reduces people’s downside risk and encourages investment. On the negative side, it can create conflicts of interest between borrowers and lenders. The EU-funded HILL project will investigate (both empirically and theoretically) this trade-off in the context of entrepreneurs, non-financial companies, and banks. First introduced in the beginning of the 19th century, limited liability has existed in various forms. This project takes a historical approach and will analyse how changes in limited liability affected patenting, the introduction of new technologies, migration decisions, firms' cost of capital, firm creation, and bank risk-taking and lending decisions.

Host institution

ERASMUS UNIVERSITEIT ROTTERDAM
Net EU contribution
€ 1 637 943,00
Address
Burgemeester Oudlaan 50
3062 PA Rotterdam
Netherlands

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Region
West-Nederland Zuid-Holland Groot-Rijnmond
Activity type
Higher or Secondary Education Establishments
Other funding
€ 1 637 943,00

Beneficiaries (1)

ERASMUS UNIVERSITEIT ROTTERDAM
Netherlands
Net EU contribution
€ 1 637 943,00
Address
Burgemeester Oudlaan 50
3062 PA Rotterdam

See on map

Region
West-Nederland Zuid-Holland Groot-Rijnmond
Activity type
Higher or Secondary Education Establishments
Other funding
€ 1 637 943,00