Rigidity of Public Contracts
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This research received financial support from the Jeffrey A. Jacobs Distinguished Professor of Business and Technology Chair at the Haas School of Business, University of California, Berkeley and IESE's Public-Private Sector Research Center. Data from SEC's EDGAR database, CORI K-Base, Wharton Research Data Services (WRDS), and the CQ Voting and Elections Collection are gratefully acknowledged. We thank the participants in the presentations made at the NBER Summer Institute, Duke University, University of California, Berkeley (Haas), California Polytechnic State University (San Luis Obispo, CA), ETH-Zurich (Law & Economics), FGV (Rio de Janeiro), National Research University-Higher School of Economics (Moscow), Université Paris-Sorbonne (Chaire EPPP), Université Paris-Dauphine/European University Institute (ISNIE 2013), and the World Bank for their comments. We are particularly indebted to Emmanuelle Auriol, Lisa Bernstein, Oliver Hart, Jack Gansler, Ricard Gil, Paul Grout, Jeremy Mayer, Edward Rhodes, Stéphane Saussier, Giancarlo Spagnolo, and Joao Veiga Malta for their helpful suggestions and to Scott Masten for his extensive review of an early version of this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.