Management Theory and Studies for Rural Business and Infrastructure Development, Volume 30

The Measurement of Transactions Costs: Methodological Issues

Artūras Lakis, Virginia Namiotko
Lithuanian Institute of Agrarian Economics

Abstract

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


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.