Crisis, sustainability of electricity prices and state interventions in Argentina

Hulya Dagdeviren

Industrial and Corporate Change, 2012, vol. 21, issue 2, 403-427

Abstract: This article examines the sustainability of wholesale power prices following the 2001 economic crisis in Argentina. We depart from the contractual disputes between the multinational power generating companies and the state of Argentina, arising from price and investment interventions after the economic crisis. Then, we move on to argue that these sector-specific measures were inevitable once some of the key macroeconomic policies such as the currency board system were discarded. Using an error correction method and estimating a counterfactual price series, we demonstrate that in the absence of changes in the price determination method and direct public investment, the level and the volatility of power prices would have been much higher with further knock on effects on the rest of the economy. Copyright 2012 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtr044 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:21:y:2012:i:2:p:403-427

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().