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February 01, 2010


Luis Enrique

so ... we have an economy that does allow for a variety of ownership structures, but people are of the opinion that the ownership structure we actually observe are not ideal, and presumable these people also choose not to interpret the rarity of cooperatives and such like as revealing these forms of ownership are not successful in practice, but instead blame some mechanisms within financial capitalism for maintaining the status quo and preventing these form of ownership from flourishing, confident in the belief they would flourish if these constraints were removed.

so, what are these constraints, and how do we remove them? What is the policy intervention that will unleash the potential of alternative forms of ownership, without merely consisting of a subsidy for these forms of ownership that will increase their prevalence regardless of merit.
[I still think you exaggerate the role of ownership in recent financial implosion]

Luis Enrique

although of course if you really believe, say, cooperatives are superior to other forms of ownership, I suppose you can simply cut them a taxation break and watch them grow.


"3. Path dependency. By far the best predictor of by whom or by how a company will be owned next year is simply who and by how it is owned his year."

... or it could be just that ownership tends to change over longer timescales than one year.

Paul Sagar

To be fair to Paul Sagar, he did end his angry post with calls for people to look at ownership structures more.

And Adam Lent is doing that, albeit in a confused manner.


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