IDEAS home Printed from https://ideas.repec.org/a/ids/gbusec/v3y2001i2p212-232.html
   My bibliography  Save this article

Hedging against risk and the substitution of consumer issued assets by producer issued assets: the role of state specialisation of production processes

Author

Listed:
  • Pedro J. Gutierrez

Abstract

This paper analyses the conditions under which consumer issued assets can be substituted by producer issued assets in the risk hedging process when the uncertainty source is technological. Using a general equilibrium framework, I demonstrate that the generation of state specialised production processes makes consumer issued assets redundant, providing risk cover through investment and eliminating the transaction costs implicit in the consumer issued assets. This mechanism, similar to that of Coase (1937), allows the profit from such state specialisation to be calculated, contributing to the development of the firm theory under uncertainty.

Suggested Citation

  • Pedro J. Gutierrez, 2001. "Hedging against risk and the substitution of consumer issued assets by producer issued assets: the role of state specialisation of production processes," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 3(2), pages 212-232.
    • Handle: RePEc:ids:gbusec:v:3:y:2001:i:2:p:212-232
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=6173
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:gbusec:v:3:y:2001:i:2:p:212-232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=168 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.