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Speculative and Entrepreneurial Behaviour: A Study of Micro-Economic Sustainability in Argentina During the 1990s

Valeria Arza () and Paula Español ()
Additional contact information
Valeria Arza: SPRU, University of Sussex, http://www.sussex.ac.uk/spru/profile116045.html
Paula Español: EHESS, PSE (Paris-Jourdan Sciences Economiques)

No 135, SPRU Working Paper Series from SPRU - Science Policy Research Unit, University of Sussex Business School

Abstract: This paper sheds light on microeconomic sustainability after complete financial liberalisation was implemented in Argentina during the 1990s. Inspired by Keynes and Minsky, we estimate an investment model that accounts for financial constraints using panel data for Argentina during the 1990s. The main conclusion of the study is that there was an increase in speculative behaviour which was unconnected to entrepreneurial behaviour based on investment in fixed assets. Over the decade, the number of speculative firms increased. Moreover, these firms increased their debt burden, particularly with financial institutions. However, they did not use these funds to invest in fixed assets.

Keywords: speculation; investment; financial constraints; firm behaviour; micro sustainability; Minsky; Argentina (search for similar items in EconPapers)
JEL-codes: C23 D21 O16 O54 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-10-10
New Economics Papers: this item is included in nep-ent and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:sru:ssewps:135

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