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Governance structure and transaction cost: relationship between strategy and asset specificity


  • Christian Luiz da Silva


  • Maria Sylvia M. Saes



This article presents a theoretical discussion of the determining factors of governance structures, using the transaction cost approach. The coexistence of distinct structures in the same production chain, whose assets show no difference in terms of specificity, is a problematic challenge for transaction cost economics, since it predicts a convergence towards the most efficient structures. The research is pure and explanatory and seeks to identify the determining or contributing variables to the occurrence of the phenomena. Thus, the research source is documental, encompassing the literature discussing the relation between governance structure and transaction cost.

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  • Christian Luiz da Silva & Maria Sylvia M. Saes, 2007. "Governance structure and transaction cost: relationship between strategy and asset specificity," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(3), pages 443-468, September.
  • Handle: RePEc:nov:artigo:v:17:y:2007:i:3:p:443-468

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    References listed on IDEAS

    1. Michael Baker & Jonathan Gruber & Kevin Milligan, 2003. "The retirement incentive effects of Canada's Income Security programs," Canadian Journal of Economics, Canadian Economics Association, vol. 36(2), pages 261-290, May.
    2. de Carvalho Filho, Irineu Evangelista, 2008. "Old-age benefits and retirement decisions of rural elderly in Brazil," Journal of Development Economics, Elsevier, vol. 86(1), pages 129-146, April.
    3. Peracchi, Franco & Welch, Finis, 1994. "Trends in Labor Force Transitions of Older Men and Women," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 210-242, April.
    4. Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307 Elsevier.
    5. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1, January.
    6. Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June.
    7. Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters,in: Social Security and Retirement around the World, pages 1-35 National Bureau of Economic Research, Inc.
    8. Krueger, Alan B & Pischke, Jorn-Steffen, 1992. "The Effect of Social Security on Labor Supply: A Cohort Analysis of the Notch Generation," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 412-437, October.
    9. David Lam & Murray Leibbrandt & Vimal Ranchhod, 2005. "Labour force withdrawal of the elderly in South Africa," SALDRU/CSSR Working Papers 118, Southern Africa Labour and Development Research Unit, University of Cape Town.
    10. Além, Ana Cláudia & Pastoriza, Florinda & Giambiagi, Fabio, 1998. "A Aposentadoria por Tempo de Serviço no Brasil : Estimativa do Subsídio Recebido pelos seus Beneficiários," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 52(1), January.
    11. Dora L. Costa, 1998. "The Evolution of Retirement: An American Economic History, 1880-1990," NBER Books, National Bureau of Economic Research, Inc, number cost98-1, January.
    12. Richard Johnson, 2000. "The effect of old-age insurance on male retirement : evidence from historical cross-country data," Research Working Paper RWP 00-09, Federal Reserve Bank of Kansas City.
    13. Borsch-Supan, Axel, 2000. "Incentive effects of social security on labor force participation: evidence in Germany and across Europe," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 25-49, October.
    14. Joseph F. Quinn, 1993. "Retirement And The Labor Force Behavior Of The Elderly," Boston College Working Papers in Economics 257, Boston College Department of Economics.
    15. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, January.
    16. Gary Burtless & Joseph F. Quinn, 2000. "Retirement Trends and Policies to Encourage Work Among Older Americans," Boston College Working Papers in Economics 436, Boston College Department of Economics.
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    Cited by:

    1. Gui, Emi Minghui & Diesendorf, Mark & MacGill, Iain, 2017. "Distributed energy infrastructure paradigm: Community microgrids in a new institutional economics context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1355-1365.
    2. Monteiro, Guilherme Fowler A. & Saes, Maria Sylvia Macchione & Caleman, Silvia Morales de Queiroz & Zylbersztajn, Décio, 2012. "The Role of Empirical Research in the Study of Complex Forms of Governance in Agroindustrial Systems," Brazilian Journal of Rural Economy and Sociology (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 50(4), December.

    More about this item


    governance structure; transaction cost; strategies;

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General


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