nep-reg New Economics Papers
on Regulation
Issue of 2005‒05‒14
eight papers chosen by
Christian Calmes
Université du Québec en Outaouais, Canada

  1. Competitive environments and protective behaviour By Borm,Peter; Estevez-Fernandez,Arantza; Fiestras-Janeiro,M. Gloria
  2. The Impact of Intellectual Property Rights on International Self-Employed Rates By Andrew Burke; Stuart Fraser
  3. Dynamic Stability and Reform of Political Institutions By Roger Lagunoff
  4. Energy Regulation in Quebec By C. Robert Clark; Andrew Leach
  5. Ethical aspects of e-commerce: data subjects and content By Sison, Alejo J.; Fontrodona, Joan
  6. Banking Sector Crises and Related New Regulations in Turkey By Aykut Kibritcioglu
  7. What a Difference Immigration Law Makes: PISA results, migration background, socioeconomic status and social mobility in Europe and traditional countries of immigration By Horst Entorf; Nicoleta Minoiu
  8. The viability of deregulation in the russian gas industry By Catherine Locatelli

  1. By: Borm,Peter; Estevez-Fernandez,Arantza; Fiestras-Janeiro,M. Gloria (Tilburg University, Center for Economic Research)
    Abstract: The class of two-person competition games is introduced and analyzed. For any game in this class the set of Nash equilibria is convex, equilibrium strategies are exchangeable, and all Nash equilibria lead to the same payoff vector. Competition games are compared to other competitive environments such as unilaterally competitive games and rivalry games. Moreover, protective behaviour within competitive environments is analyzed. For matrix games it is known that protective strategies pro¯les exactly correspond to proper equilibria. It is shown that this result can be extended to the class of unilaterally competitive games.
    JEL: C72
    Date: 2005
  2. By: Andrew Burke; Stuart Fraser
    Abstract: The importance of IPR regimes for large firm innovation is well documented but less is known about their impact on typically less innovative self-employed entrepreneurship. The paper estimates the net effect of the various elements that comprise an IPR regime including the political system, the laws, conventions and institutions as well as a general familiarity with and respect for IPR related products. Cumulatively, the analysis indicates that a well developed IPR regime raises self-employment rates significantly; by as much as 31% among males and 13% among females. Since the self-employed sector is possibly the only segment of the enterprise base where IPRs may be expected (and frequently assumed) to have a negative effect the research finding of a positive effect provides a useful contribution to our empirical understanding of the welfare effects of IPRs on the entrepreneurial economy more widely. The research also indicates that the formulation of effective enterprise policy which attempts to stimulate the less innovative self-employed sector of the entrepreneurial economy- particularly in developing countries - may need to look beyond the usual focus on industrial policy and consider wider political economy IPR determinants of self-employment activity.
    Keywords: self-employment, intellectual property rights, imitation
    JEL: L2 O33 O34 L2
    Date: 2005–05
  3. By: Roger Lagunoff (Georgetown University)
    Abstract: This paper studies dynamic, endogenous institutional change. We introduce the class of dynamic political games (DPGs), dynamic games in which future political aggregation rules are decided under current ones, and the resulting institutional choices do not affect payoffs or technology directly. A companion paper (Lagunoff (2005b)) establishes existence of Markov Perfect equilibria of dynamic political games. The present paper examines issues of stability and reform when such equilibria exist. Which environments tend toward institutional stability? Which tend toward reform? We show that when political rules are dynamically consistent and private sector decisions areinessential,reform never occurs: all political rules are stable. Roughly,private sector decisions are inessential if any feasible ``social' continuation payoff can achieved by public sector decisions alone. More generally, we identify sufficient conditions for stability and reform in terms of recursive self selection and recursive self denial,incentive compatibility concepts that treat the rules themselves as ``players' who can strategically delegate future policy-making authority to different institutional types. These ideas are illustrated in an example of dynamic public goods provision.
    Keywords: Recursive, dynamic political games, institutional reform, stability, dynamically consistent rules, inessential, recursive self selection.
    JEL: C73 D72 D74
    Date: 2005–05–12
  4. By: C. Robert Clark; Andrew Leach
    Abstract: This report characterizes the regulation of energy markets in general and focuses on the electricity and natural gas markets of Québec. Markets are regulated if they are deemed to represent natural monopoly situations or if unregulated firms would not take into account externalities that they might generate. Energy market regulation has been justified with the claim that regulation represents the “second-best” alternative. That is, given a situation in which there is market failure, the outcome derived under regulation may be better than the outcome that would arise if the market were unregulated. Government intervention may be required in order to protect the interests of consumers. Energy markets have been considered natural monopoly situations in large part because of the enormous fixed costs associated with production and distribution. Furthermore, electricity and natural gas are generally considered essential goods, or more accurately, goods with significant positive externalities from reliable supply. A reliable supply is necessary for the proper functioning of any modern economy and a private market might not provide equally for all people in a service area.<P> In recent years, however, certain segments of some energy markets have been liberalized, since these segments might not actually be natural monopoly situations and/or because the market may provide means to ensure that firms internalize externalities. We describe the experiences of a number of jurisdictions that have experimented with energy market liberalization and show that restructuring is feasible and may provide an improvement over the status quo if market power can be limited.<P> We consider the potential for restructuring in Québec’s energy markets which are currently regulated by the Régie de l’énergie du Québec. Québec’s electricity market does not represent a typical case for the restructuring of the production side since the vast majority of its generating capacity comes from hydro projects. Over 90% of Québec’s installed electrical capacity is hydro generated, making Québec the second most hydro-dominated market in the world after Norway. Furthermore, this capacity is highly concentrated on three river systems. The usual model of forced divestiture by hydrologic system is therefore likely to introduce market power in a restructured market, and may lead to greater inefficiencies than those present under regulation. In order for any market restructuring to succeed, (at least) one of two approaches must be undertaken. A system of tradable water rights could be established in parallel with a competitive power pool in order to allow divestiture of individual plants within a river system and/or Québec’s markets could be opened to foreign production.<P> The retail segment of Québec’s energy markets could potentially benefit from liberalization. The only obvious difference between Québec’s energy markets and those in other jurisdictions is Québec’s price-equalization policy. Lower prices could prevail if competition were introduced to the markets for electricity and natural gas, but not for all consumers. Québec’s insistence on uniform prices throughout the province means that some consumers are currently paying below market price for energy. Prices for these consumers could rise if the market is restructured. <P>
    Date: 2005–05–01
  5. By: Sison, Alejo J. (University of Navarra); Fontrodona, Joan (IESE Business School)
    Abstract: This paper reflects on the ethical challenges posed by Internet commerce, with special emphasis on those involving the content and the users of the information. The paper discusses the main ethical issues in e-commerce, including security, privacy, identity and nonrefutability of transactions. It proposes measures which both governments and the private sector could adopt to address those issues on different levels. Finally, the paper reflects on the creation of value by leveraging trust and proposes two universal principles to be upheld in Internet commerce: online-offline consistency and technological neutrality.
    Keywords: Security; privacy; identity; nonrefutability; e-commerce ethics;
    Date: 2005–03–20
  6. By: Aykut Kibritcioglu (Ankara University)
    Abstract: In Turkey, the financial sector is traditionally dominated by banking activities, and the banking sector experienced several systemic crises since late 1970s. This paper reviews and summarizes the major banking sector problems in the country. It also outlines the latest regulations and reform attempts in Turkey, with particular reference to Turkey's future EU membership.
    Keywords: Banking sector, financial fragility, banking crises, banking regulations, Turkey
    JEL: E44 G21
    Date: 2005–05–11
  7. By: Horst Entorf (Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology)); Nicoleta Minoiu
    Abstract: The purpose of this article is to evaluate the importance of social class, migration background and command of national languages for the PISA school performance of teenagers living in European countries (France, Finland, Germany, United Kingdom, and Sweden) and traditional countries of immigration (Australia, Canada, New Zealand and the US). Econometric results show that the influence of the socioeconomic background of parents differs strongly across nations, with the highest impact found for Germany, the UK and US, whereas social mobility appears to be more likely in Scandinavian countries and in Canada. Further empirical results show that for students with a migration background a key for catching up is the language spoken at home. We conclude that educational policy should focus on integration of immigrant children in schools and preschools, with particular emphasis on language skills at the early stage of childhood.
    Date: 2004–01
  8. By: Catherine Locatelli (LEPII - Laboratoire d'économie de la production et de l'intégration internationale - - CNRS : FRE2664 - Université Pierre Mendès-France - Grenoble II)
    Abstract: Russia is the world's leading gas producer. But reforming the gas industry is currently one of the major challenges facing the Russian energy industry in order to pursue its development. Since 1991, the terms of the debate have scarcely changed: what level of deregulation is required, or can be introduced, in the gas industry? The reform project, actually discussed, is quite limited. This aim is to favour the development of competition on the Russian domestic market by creation of new producers. But it maintains the production-transport integration of Gazprom, the actual gas monopoly. Also, Gazprom will retain the monopoly on exports. So, the first stage of the reform, will only be the setting-up of a transparent and non-discriminatory transportation network for Gazprom, with regulated prices, and the creation of an unregulated market alongside a regulated market. But the issue of the reform begs a number of questions on the extent to which it will be accepted by the various actors involved at different levels.
    Keywords: russie;reforme;industrie gaziere;déréglementation;gas industry;deregulation;russia
    Date: 2004–03–16

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