In any discussion of the effects of economic sanctions it should be clear that sanctions are potentially harmful or costly to not only the target nation, but also the sanctioning countries. The potential harm will be dependent on the degree of substitution in trade and capital markets, i.e., on “fungibility.” Even if sanctions impose harm […]
The Optimal Size of the Military in a Post-Castro Cuba
In addressing the question of what is the optimal size of the defense sector in a post-Castro Cuba, we must first establish some criteria by which we can judge different alternatives. In this paper, the criteria that I use is one where the level of the military sector is determined by the preferences of the […]
The Political Economy of State-Owned Enterprises
In this paper we wish to explain certain “stylized facts” of the Cuban economy, both past and present, as well as outline certain features which will be prevalent during a transition to a market economy with private property rights. We employ a “new political economy” or “public choice” framework to understand the effects that economic […]