Case Studies

The Chiapas Puzzle - March, 20202

  • In order to spark sustainable growth, many complementary inputs are required. It is essential to identify which of the complementary inputs are missing, as opposed to investing in improving the provision of inputs already present that are not constraining growth.

  • Place-specific factors play a very important role in development, and are prone to suffer from coordination failures. The government has a role to play in solving these coordination failures and fostering the creation of a productive ecosystem.

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CANTV-TELMEX: Which is the appropriate discount rate? - August, 2009

  • Appreciate the difficulties of estimating cost of capital in emerging markets, meeting the market requirements and dealing with the lack of consensus theories for this problem. 
  • Evaluate different methodologies for adapting to emerging markets the theories originally designed for the United States stock markets, such as the CAPM. 
  • Dealing with the country risk impact on the cost of capital in an emerging market where there is divergence between the perception of political risk and sovereign risk (or paymentcapacity).   

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