The article discusses the identification and valuation of private benefits of control occurring when the State Treasury retains controlling interest in a company that is being privatised. The benefits are gained by politicians at the expense of the State Treasury and private investors. Using the case of a dispute between the State Treasury of the Republic of Poland and Eureko B.V. over the control of PZU, Poland's largest insurance company, we reduce the issue of control of a company to the selection of the ownership structure. To determine the value of private benefits of control, we suggest that the option-to-switch valuation model should be used.
{"title":"Politicians and Private Benefits of Control","authors":"Michał Kałdoński, Jacek Mizerka","doi":"10.2139/ssrn.963629","DOIUrl":"https://doi.org/10.2139/ssrn.963629","url":null,"abstract":"The article discusses the identification and valuation of private benefits of control occurring when the State Treasury retains controlling interest in a company that is being privatised. The benefits are gained by politicians at the expense of the State Treasury and private investors. Using the case of a dispute between the State Treasury of the Republic of Poland and Eureko B.V. over the control of PZU, Poland's largest insurance company, we reduce the issue of control of a company to the selection of the ownership structure. To determine the value of private benefits of control, we suggest that the option-to-switch valuation model should be used.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129903694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The doctrine of agency of necessity which prescribes that in a situation of emergency the agent is automatically authorized to act on the principal's behalf, is one of the oldest means of creating anagency. However, of late, the growth and development of the law of express and implied authority has made such ancient notions redundant. This article will explicate the doctrine of agency of necessity. Next, the creation of agency by authority will be evaluated. Finally, the article will critique the creation of agency by operation of law and argue in favour of amalgamating it within the general law of actual and apparent authority.
{"title":"Agency of Necessity","authors":"Moiz Tundawala, N. Samanta","doi":"10.2139/ssrn.980210","DOIUrl":"https://doi.org/10.2139/ssrn.980210","url":null,"abstract":"The doctrine of agency of necessity which prescribes that in a situation of emergency the agent is automatically authorized to act on the principal's behalf, is one of the oldest means of creating anagency. However, of late, the growth and development of the law of express and implied authority has made such ancient notions redundant. This article will explicate the doctrine of agency of necessity. Next, the creation of agency by authority will be evaluated. Finally, the article will critique the creation of agency by operation of law and argue in favour of amalgamating it within the general law of actual and apparent authority.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130983621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2007-02-01DOI: 10.1111/j.1467-9701.2007.00887.x
D. Greenaway, D. Sapsford, Stephan Pfaffenzeller
In a number of influential papers published by V. N. Balasubramanyam and collaborators during the decade of the 1990s, compelling arguments and supporting evidence was presented to indicate that export-promoting trade and investment strategies attract more and more productive inflows of foreign capital than do import-substituting strategies. This paper revisits these hypotheses in the context of more recent cross-section data and reports evidence to suggest that the earlier findings are robust.
在V. N. Balasubramanyam及其合作者在1990年代十年间发表的一些有影响力的论文中，提出了令人信服的论点和支持证据，表明促进出口的贸易和投资战略比进口替代战略吸引越来越多的生产性外国资本流入。本文在最近的横截面数据的背景下重新审视了这些假设，并报告证据表明，早期的发现是稳健的。
{"title":"Foreign Direct Investment, Economic Performance and Trade Liberalisation","authors":"D. Greenaway, D. Sapsford, Stephan Pfaffenzeller","doi":"10.1111/j.1467-9701.2007.00887.x","DOIUrl":"https://doi.org/10.1111/j.1467-9701.2007.00887.x","url":null,"abstract":"In a number of influential papers published by V. N. Balasubramanyam and collaborators during the decade of the 1990s, compelling arguments and supporting evidence was presented to indicate that export-promoting trade and investment strategies attract more and more productive inflows of foreign capital than do import-substituting strategies. This paper revisits these hypotheses in the context of more recent cross-section data and reports evidence to suggest that the earlier findings are robust.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"122 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127067505","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
SUMMARY The water sector has economic and symbolic importance for citizens in developing countries. Water utility benchmarking is no panacea for improving water sector performance. Nevertheless, it can contribute to addressing four sources of conflict in the design and implementation of policies: cognitive conflicts (based on technical disagreements regarding how data might be analysed and interpreted), interest conflicts (where suppliers and demanders obtain different benefits and costs under alternative policies), values conflicts (involving ideology or personal preferences regarding water sector outcomes) and authority conflicts (stemming from jurisdictional disagreements over who has the last word). These potential sources of conflict characterise most politically-charged situations, including water supply management. This article examines the extent to which water utility benchmarking facilitates conflict resolution. Without information on historical trends, current baselines and realistic targets, conflicts over reforms to improve sector performance can weaken systems that are already fragile, particularly those in developing countries. This article attempts to improve our understanding of the links between sources of conflict, government approaches for dealing with conflict and the role of water utility benchmarking as a complementary strategy for addressing policy issues. Benchmarking is one way regulators and managers can promote conflict resolution that allows participants to focus on performance. The principles apply to all sectors with significant state oversight. Copyright # 2007 John Wiley & Sons, Ltd.
{"title":"Conflict Resolution: Benchmarking Water Utility Performance","authors":"S. Berg","doi":"10.1002/PAD.437","DOIUrl":"https://doi.org/10.1002/PAD.437","url":null,"abstract":"SUMMARY The water sector has economic and symbolic importance for citizens in developing countries. Water utility benchmarking is no panacea for improving water sector performance. Nevertheless, it can contribute to addressing four sources of conflict in the design and implementation of policies: cognitive conflicts (based on technical disagreements regarding how data might be analysed and interpreted), interest conflicts (where suppliers and demanders obtain different benefits and costs under alternative policies), values conflicts (involving ideology or personal preferences regarding water sector outcomes) and authority conflicts (stemming from jurisdictional disagreements over who has the last word). These potential sources of conflict characterise most politically-charged situations, including water supply management. This article examines the extent to which water utility benchmarking facilitates conflict resolution. Without information on historical trends, current baselines and realistic targets, conflicts over reforms to improve sector performance can weaken systems that are already fragile, particularly those in developing countries. This article attempts to improve our understanding of the links between sources of conflict, government approaches for dealing with conflict and the role of water utility benchmarking as a complementary strategy for addressing policy issues. Benchmarking is one way regulators and managers can promote conflict resolution that allows participants to focus on performance. The principles apply to all sectors with significant state oversight. Copyright # 2007 John Wiley & Sons, Ltd.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126213348","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, we investigate one highly significant aspect of the role of money in judicial elections: whether campaign spending increases citizen participation in the recruitment and retention of judges. Specifically, by using a two-stage modeling strategy that allows us to separate the mobilizing effects of challengers from the effects of money, we assess systematically whether relatively expensive campaigns improve the chances that citizens will vote in the 260 supreme court elections held from 1990 through 2004 in eighteen states using partisan or nonpartisan elections to staff the high court bench. We find that increased spending significantly improves citizen participation in these races. Whether measured as the overall spending in each election or in per capita terms, greater spending facilitates voting. We conclude, contrary to conventional wisdom about the deleterious effects of money in judicial elections, that campaign spending should serve as a means to enhance perceptions of courts by involving greater proportions of voters in the electoral process - perhaps the most powerful legitimacy conferring institution in democracy. Rather than alienating voters, expensive campaigns should strengthen the critical linkage between citizens and the bench by giving voters greater ownership in the outcomes of these races.
{"title":"Does Money Buy Voters? Campaign Spending and Citizen Participation in State Supreme Court Elections","authors":"M. Hall, Chris W. Bonneau","doi":"10.2139/ssrn.1009671","DOIUrl":"https://doi.org/10.2139/ssrn.1009671","url":null,"abstract":"In this paper, we investigate one highly significant aspect of the role of money in judicial elections: whether campaign spending increases citizen participation in the recruitment and retention of judges. Specifically, by using a two-stage modeling strategy that allows us to separate the mobilizing effects of challengers from the effects of money, we assess systematically whether relatively expensive campaigns improve the chances that citizens will vote in the 260 supreme court elections held from 1990 through 2004 in eighteen states using partisan or nonpartisan elections to staff the high court bench. We find that increased spending significantly improves citizen participation in these races. Whether measured as the overall spending in each election or in per capita terms, greater spending facilitates voting. We conclude, contrary to conventional wisdom about the deleterious effects of money in judicial elections, that campaign spending should serve as a means to enhance perceptions of courts by involving greater proportions of voters in the electoral process - perhaps the most powerful legitimacy conferring institution in democracy. Rather than alienating voters, expensive campaigns should strengthen the critical linkage between citizens and the bench by giving voters greater ownership in the outcomes of these races.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"23 22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122670949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The recent Supreme Court battle over the legal standard for permanent injunctions in patents cases (eBay v. MercExchange) marked an important new front in the Property Rights Movement's campaign to establish a strict and broad interpretation of property rights and their enforcement. This essay explores whether Professor Richard Epstein's embrace of intellectual property rights is likely to produce a durable marriage of traditional property rights theory and intellectual property protection or merely represents a fling that will not withstand divisive relational pressures. It shows that philosophical, functional, intellectual, and political tensions stand in the way of a stable or enduring relationship between advocates of strong and unyielding property rights and intellectual property owners. The need for dynamism and adaptability within the intellectual property rights field may well weaken the support for absolutism in property jurisprudence and policy, reinforcing the shift away from the Blackstonian conception of property.
最近，最高法院就专利案件中永久禁令的法律标准(eBay诉MercExchange)展开了一场斗争，这标志着产权运动(Property Rights Movement)建立严格而广泛的产权解释及其执行的运动开辟了一条重要的新战线。本文探讨了理查德·爱泼斯坦教授对知识产权的拥护是否可能产生传统产权理论与知识产权保护的持久结合，或者仅仅代表了一种无法承受分裂关系压力的一时冲动。它表明，哲学上、功能上、知识上和政治上的紧张关系阻碍了强有力的产权倡导者和知识产权所有者之间建立稳定或持久的关系。知识产权领域对活力和适应性的需要很可能削弱对财产法学和政策中绝对主义的支持，从而加强从布莱克斯通财产概念的转变。
{"title":"The Property Rights Movement's Embrace of Intellectual Property: True Love or Doomed Relationship?","authors":"Peter S. Menell","doi":"10.2139/SSRN.965083","DOIUrl":"https://doi.org/10.2139/SSRN.965083","url":null,"abstract":"The recent Supreme Court battle over the legal standard for permanent injunctions in patents cases (eBay v. MercExchange) marked an important new front in the Property Rights Movement's campaign to establish a strict and broad interpretation of property rights and their enforcement. This essay explores whether Professor Richard Epstein's embrace of intellectual property rights is likely to produce a durable marriage of traditional property rights theory and intellectual property protection or merely represents a fling that will not withstand divisive relational pressures. It shows that philosophical, functional, intellectual, and political tensions stand in the way of a stable or enduring relationship between advocates of strong and unyielding property rights and intellectual property owners. The need for dynamism and adaptability within the intellectual property rights field may well weaken the support for absolutism in property jurisprudence and policy, reinforcing the shift away from the Blackstonian conception of property.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134166808","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
There is growing evidence that economic crises are transmitted across economies and equity markets. This motivates two questions. First, can the direction and magnitude of a country's stock market reaction during an extreme case ("contagion") be explained by economic fundamentals? Second, are there benefits of international diversification during times of widespread contagion among equity markets? We examine the reaction of major world equity markets to the 1997 Asian Crisis. In particular, we investigate the interrelationships among world equity markets, the factors explaining the different directions and magnitudes of countries' reactions to this crisis and the effectiveness of the global diversification of investment portfolios during financial crises. Our analyses provide evidence that is consistent with the correlations among world equity markets increasing dramatically during the period of the Asian Crisis. However, this effect is concentrated on a short period around the crisis. The benefits of international diversification may be obtainable, even when the period contains a worldwide financial crisis. We show that the productivity and interest rate macroeconomic variables, worldwide beta and the existence of derivatives trading are important in explaining the stock market returns during the Asian Crisis. The effect of the worldwide beta variable is particularly strong. Finally, the trade variables are insignificant, their influences being subsumed by interest rate and inflation macroeconomic variables. On balance, we interpret our results as supporting a rational view of the spread of an economic crisis to other markets.
{"title":"Contagion in the World Equity Markets and the Asian Economic Crisis","authors":"R. Bowman, K. F. Chan, Matthew R. Comer","doi":"10.2139/ssrn.965316","DOIUrl":"https://doi.org/10.2139/ssrn.965316","url":null,"abstract":"There is growing evidence that economic crises are transmitted across economies and equity markets. This motivates two questions. First, can the direction and magnitude of a country's stock market reaction during an extreme case (\"contagion\") be explained by economic fundamentals? Second, are there benefits of international diversification during times of widespread contagion among equity markets? We examine the reaction of major world equity markets to the 1997 Asian Crisis. In particular, we investigate the interrelationships among world equity markets, the factors explaining the different directions and magnitudes of countries' reactions to this crisis and the effectiveness of the global diversification of investment portfolios during financial crises. Our analyses provide evidence that is consistent with the correlations among world equity markets increasing dramatically during the period of the Asian Crisis. However, this effect is concentrated on a short period around the crisis. The benefits of international diversification may be obtainable, even when the period contains a worldwide financial crisis. We show that the productivity and interest rate macroeconomic variables, worldwide beta and the existence of derivatives trading are important in explaining the stock market returns during the Asian Crisis. The effect of the worldwide beta variable is particularly strong. Finally, the trade variables are insignificant, their influences being subsumed by interest rate and inflation macroeconomic variables. On balance, we interpret our results as supporting a rational view of the spread of an economic crisis to other markets.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125342864","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The recent wave of corporate scandals has placed corporate executives and boards of directors in the cross hairs of public opinion. However, the tactics of some new wave investors, particularly some breed of hedge funds (which would be more aptly called speculative funds), and their relentless efforts to commoditize industrial firms may bring the investor community under closer scrutiny. By their very actions and successes, hedge funds of the speculative kind are raising a number of very serious issues about the future of corporations and even about their impact on the industrial structures of countries.This paper stresses several points and arguments made by key researchers:1. The realities of contemporary stock markets are made of high stock churn rate, short holding period, vote buying activities, record date capture, short selling, stock lending, huge volume of stock derivatives, fairly long period of time between record date and date of annual meeting. As a result, the common assumptions underlying corporate democracy have been made obsolete; the huge volume of share trading by hedge funds is a major contributing factor to these developments;2. Some variants of hedge funds are now in the business of pressuring management and directors to undertake actions they deem likely to boost share prices; to enhance their ability to achieve their ends, they take full advantage of the anomalies and imperfections of corporate democracy;3. A significant presence in the shareholder base of a company of short-term, transient investors does have an impact on the way a company is managed;4. In the contemporary world of finance, the one-share/one-vote incantation rings hollow; it may be sub-optimal and a source of serious distortions;5. Unfettered trading in the control of companies, as if they were a commodity, a metal, or a piece of commercial real estate, may be the goal of some players in the financial markets; but the aggressive pursuit of that goal may bring about government policies and popular attitudes far less beneficial to reasonable investors.This paper reviews the range of options proposed to curtail their ability to do harm. As documented by Black and Hu (2006a,b) and Martin and Partnoy (2005), their ability and willingness to capitalize on the weaknesses of corporate democratic processes raise serious issues, which have led to calls for measures to fence in these funds and limit the damages they may inflict on societies.
{"title":"Hedge Funds as Activist Shareholders: Passing Phenomenon or Grave-Diggers of Public Corporations?","authors":"Yvan Allaire, M. Firsirotu","doi":"10.2139/ssrn.961828","DOIUrl":"https://doi.org/10.2139/ssrn.961828","url":null,"abstract":"The recent wave of corporate scandals has placed corporate executives and boards of directors in the cross hairs of public opinion. However, the tactics of some new wave investors, particularly some breed of hedge funds (which would be more aptly called speculative funds), and their relentless efforts to commoditize industrial firms may bring the investor community under closer scrutiny. By their very actions and successes, hedge funds of the speculative kind are raising a number of very serious issues about the future of corporations and even about their impact on the industrial structures of countries.This paper stresses several points and arguments made by key researchers:1. The realities of contemporary stock markets are made of high stock churn rate, short holding period, vote buying activities, record date capture, short selling, stock lending, huge volume of stock derivatives, fairly long period of time between record date and date of annual meeting. As a result, the common assumptions underlying corporate democracy have been made obsolete; the huge volume of share trading by hedge funds is a major contributing factor to these developments;2. Some variants of hedge funds are now in the business of pressuring management and directors to undertake actions they deem likely to boost share prices; to enhance their ability to achieve their ends, they take full advantage of the anomalies and imperfections of corporate democracy;3. A significant presence in the shareholder base of a company of short-term, transient investors does have an impact on the way a company is managed;4. In the contemporary world of finance, the one-share/one-vote incantation rings hollow; it may be sub-optimal and a source of serious distortions;5. Unfettered trading in the control of companies, as if they were a commodity, a metal, or a piece of commercial real estate, may be the goal of some players in the financial markets; but the aggressive pursuit of that goal may bring about government policies and popular attitudes far less beneficial to reasonable investors.This paper reviews the range of options proposed to curtail their ability to do harm. As documented by Black and Hu (2006a,b) and Martin and Partnoy (2005), their ability and willingness to capitalize on the weaknesses of corporate democratic processes raise serious issues, which have led to calls for measures to fence in these funds and limit the damages they may inflict on societies.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133530158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigates the extent of compliance with international accounting standards (IASs) by companies in the Gulf Co-Operation Council (GCC) member states (Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates). Based on a sample of 137 companies (436 company-years) we find that compliance increased over time, from 68% in 1996 to 82% in 2002. Despite strong economic and cultural ties between the GCC states, there was significant between-country variation in compliance and among companies based on size, leverage, internationality, and industry. The study provides evidence of de jure but not de facto harmonization in the region. Noncompliance reflected some ineffectiveness in the functions of external auditors and enforcement bodies, which may be of interest to countries that have adopted IASs recently.
{"title":"An Investigation of Compliance With International Accounting Standards by Listed Companies in the Gulf Co-Operation Council Member States","authors":"Bader Al-Shammari, P. Brown, A. Tarca","doi":"10.2139/ssrn.963574","DOIUrl":"https://doi.org/10.2139/ssrn.963574","url":null,"abstract":"This study investigates the extent of compliance with international accounting standards (IASs) by companies in the Gulf Co-Operation Council (GCC) member states (Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates). Based on a sample of 137 companies (436 company-years) we find that compliance increased over time, from 68% in 1996 to 82% in 2002. Despite strong economic and cultural ties between the GCC states, there was significant between-country variation in compliance and among companies based on size, leverage, internationality, and industry. The study provides evidence of de jure but not de facto harmonization in the region. Noncompliance reflected some ineffectiveness in the functions of external auditors and enforcement bodies, which may be of interest to countries that have adopted IASs recently.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133481535","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2007-01-20DOI: 10.1111/j.1467-9361.2007.00363.x
H. Toledo
This paper uses the factors proportion model of production and trade with ten inputs to analyze the potential impact of the Free Trade Agreement of the Americas (FTAA) on the coca substitution program in Bolivia. With six crops including coca, the model produces comparative statics elasticities of changing prices on factor prices and output. Results show that the coca substitution program with free trade will result in large income redistribution in the coca-producing region as a result of increased competition from larger and more efficient economies. Increased subsidies and institutional changes will be needed to sustain the coca substitution program in the long run.
{"title":"Coca Substitution and Free Trade in Bolivia: The Pending Crisis","authors":"H. Toledo","doi":"10.1111/j.1467-9361.2007.00363.x","DOIUrl":"https://doi.org/10.1111/j.1467-9361.2007.00363.x","url":null,"abstract":"This paper uses the factors proportion model of production and trade with ten inputs to analyze the potential impact of the Free Trade Agreement of the Americas (FTAA) on the coca substitution program in Bolivia. With six crops including coca, the model produces comparative statics elasticities of changing prices on factor prices and output. Results show that the coca substitution program with free trade will result in large income redistribution in the coca-producing region as a result of increased competition from larger and more efficient economies. Increased subsidies and institutional changes will be needed to sustain the coca substitution program in the long run.","PeriodicalId":367470,"journal":{"name":"Political Economy (Topic)","volume":"161 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125899674","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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