Tavares, JoséSantos, João Pereira dosBranco, Catarina Ferreira Lebre2019-04-122020-01-302019-01-15http://hdl.handle.net/10362/66379This paper analyzes the effect of a switch from free to charged highway provision on firm level outcomes for the period 2006-2016. To establish causality, this study relies on a natural experiment which resulted from Portuguese authorities being forced to introduce tolls on previously toll-free highways in the course of the sovereign debt crisis. A difference-in-difference and event study specifications were used to estimate this effect using firm-level data covering all business in the country. Estimations show that this policy resulted in a 7,6% decrease of firms’ turnover. Furthermore, firms in the secondary sector and large firms seem to have been affected more than others. Both sales to the internal market and exports were significantly hit. Lastly, there was also a significantly negative impact on number of employees, average wage and labor productivity.engSCUTNatural experimentHighway tollsDifference-in-differencemaster thesis202208907