The Measurement of Transactions Costs: Methodological Issues
Lithuanian Institute of Agrarian Economics
Transactions costs theory posits that agents make decisions on different types of transactions and do this in a costly way. While the body of descriptive and theoretical literature on transactions costs is extensive, the empirical literature has been lagging. This is important because transactions costs have a large unobservable component, and therefore their measure can only be indirectly revealed from the behavior of potential agents in the market. In this paper the theoretical literature were described. The study provides the description of the main problems with the measurement of transaction costs and presents a landmark which could help to prepare methodology for evaluation of transactions costs experienced by agricultural subjects.
Keyword(s): agricultural sector; fixed and proportional costs; transactions costs
Management Theory and Studies for Rural Business and Infrastructure Development
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