- Argentina
Corporate alliances – groups of firms that pursue projects jointly – are a common governance structure used to organize economic activity, but little is known about their performance relative to other forms of organization. I use data on... more
Corporate alliances – groups of firms that pursue projects jointly – are a common governance structure used to organize economic activity, but little is known about their performance relative to other forms of organization. I use data on oil and gas drilling in the Gulf of Mexico to compare the investment outcomes of alliances to the outcomes of solo firms that pursue projects individually. To overcome the endogenous matching of investment projects and organizational forms, I employ a regression discontinuity strategy based on bids submitted in first-price sealed-bid auctions for the rights to develop offshore leases. By focusing on leases where a solo firm narrowly outbid an alliance or an alliance narrowly outbid a solo firm, I can compare drilling outcomes while controlling for heterogeneity in investment opportunities. I find that the boreholes drilled by solo firms were less profitable than those drilled by alliances. This difference persisted at the lease level, as the leases ...
Research Interests:
In this work Public Goods are analyzed from the point of view of their definition as «non-excludable» and «non-rivalry» in order to show the contradictions it entails. Also we propose Political Goods as a proper name in order to define... more
In this work Public Goods are analyzed from the point of view of their definition as «non-excludable» and «non-rivalry» in order to show the contradictions it entails. Also we propose Political Goods as a proper name in order to define those goods provided by the state apart from the basic ones (security and justice) and therefore to show how these are the result of political pressure and arbitrary decisions by bureaucrats (which is studied in the works of James Buchanan on Democracy). Finally we present a possible justification Procesos de Mercado: Revista Europea de Economía Política Vol. XI, n.o 1, Primavera 2014, pp. 217 a 246 * Universidad del Centro Educativo Latinoamericano, Investigador Fundación Bases, Editor www.catalactica.com.ar. Santa Fe, Argentina. for the provision of Security and Justice by the State based on Economic Theory (according to the theories of Robert Nozick), which would show that the State could be the ideal agent to provide these goods, while at the same...
In the present work, Ricardo’s Law of Comparative Advantage (also known as “Law of Association”) is analyzed in order to critically respond to the analysis offered by Taleb (2012). The latter points to the invalidity of the model, since... more
In the present work, Ricardo’s Law of Comparative Advantage (also known as “Law of Association”) is analyzed in order to critically respond to the analysis offered by Taleb (2012). The latter points to the invalidity of the model, since it does not assume price variability, thus exposing it to grave sys- temic consequences due to abrupt changes in relative prices. Our critique is based on the approach taken by Ludwig Von Mises (1949) on the same sub- ject. The Ricardian model is viewed from a praxeological perspective. We maintain that Taleb’s critique, although correct in invalidating Ricardo’s anal- ysis, not only does not harm but even reaffirms Ricardo’s original conclusion pointing to the advantages of cooperation in general, and international free trade in particular. Keywords: Taleb, Mises, International Trade, Comparative Advantage, Ricardo. JEL classification: F19. Resumen: En este trabajo, la ley de Ricardo sobre ventaja comparativa (también conocida como ley de asociación...
The performance of the argentinean economy is analyzed in this work from the perspective of the Austrian Business Cycle Theory. For this purpose, such theory...
Research Interests:
Purpose This study aims to offer a critique of the theory of the deterioration in terms of trade, developed by Raúl Prebisch and Hans Singer. Design/methodology/approach As an example of the theory’s shortcomings, the case of Argentina’s... more
Purpose This study aims to offer a critique of the theory of the deterioration in terms of trade, developed by Raúl Prebisch and Hans Singer. Design/methodology/approach As an example of the theory’s shortcomings, the case of Argentina’s import substitution model is analyzed. Findings This study demonstrates how a misunderstanding of the influence of price variability in international trade may lead to the mistaken conclusion that protectionist measures must be enforced to achieve growth and prosperity. Originality/value This is the first study that criticizes the Prebisch-Singer theory of the deterioration in the terms of trade from an Austrian economics.