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on Regulation |
| By: | Evangelinos, Christos; Püschel, Ronny; Goldhahn, Susan |
| Abstract: | This paper analyzes the role of commercial revenues in today's airport regulatory system. We find that the current regulatory regime only partially achieves core aims such as welfare maximization. After highlighting instances in which airport price regulation is not economically justified, we explore the potential for airports to exercise market power in the commercial sector. In certain circumstances, we advocate the introduction of an 'inverted' dual till system under which commercial as opposed to aviation revenues are the focus of price regulation. The suitability of such a system varies from airport to airport, however, depending on various factors, such as the airport's competitive environment and the presence of capacity constraints. -- |
| Keywords: | Airport regulation,non-aviation revenues,price differentiation,single till,dual till |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tudiwv:12011&r=reg |
| By: | Felix Höffler (Max Planck Institute for Research on Collective Goods, Bonn); Sebastian Kranz (University of Bonn, Department of Economics) |
| Abstract: | A fully unbundled, regulated network fi?rm of unknown efficiency level can undertake unobservable effort to increase the likelihood of low downstream prices, e.g., by facilitating downstream competition. To incentivize such effort, the regulator can use an incentive scheme paying transfers to the ?firm contingent on realized downstream prices. Alternatively, the regulator can propose to the ?firm to sell the following forward contracts: the fi?rm pays the downstream price to the owners of a contract, but receives the expected value of the contracts when selling them to a competitive fi?nancial market. We compare the two regulatory tools with respect to regulatory capture: if the regulator can be bribed to suppress information on the underlying state of the world (the basic probability of high downstream prices, or the type of the firm), optimal regulation uses forward contracts only. |
| Keywords: | Incentive regulation, regulatory capture, virtual power plants |
| JEL: | K23 L94 L43 L51 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2011_09&r=reg |
| By: | Ojo, Marianne |
| Abstract: | It has been argued that weaknesses inherent in Private Law rules, which contribute to its inability to effectively regulate contracts, are in part, attributed to its generality as well as inflexibility in adapting to individual situations. Whilst self-regulation, a constituent of the standard setting system which private law supplements, offers advantages which include proximity (in that self regulatory organisations are considered closer to the industry being regulated), flexibility, and a high level of compliance with rules, it will be highlighted in this paper that some other models of regulation, are capable of conferring greater flexibility, compliance, enforcement and accountability. The setting of standards with „an adequate degree of specificity in order to provide effective guidance, as well as the lack of expertise in choosing between standards are amongst some of the challenges which the Private Law of Contract is confronted with. This paper aims to highlight and demonstrate why an interaction with public regulation, as well as an incorporation of substantive equality principles, will be required to address these weaknesses of Private Law. Further, it illustrates how through the evolvement of self regulation, and the interaction of self regulation with public regulation, Private Law has also evolved in its interaction with public regulation. |
| Keywords: | regulation; implied contracts; Equity; undue influence; economic duress; bargaining power; self regulation; accountability; legal certainty |
| JEL: | K2 G3 D8 G28 |
| Date: | 2011–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32282&r=reg |
| By: | Cesar Cordova-Novion; Stéphane Jacobzone |
| Abstract: | This Working Paper analyses the institutional setting for regulatory reform. It is the first comprehensive analysis of regulatory oversight bodies. The analysis adopts a functional approach through four core functions: i) oversight of the rule-making process; ii) assisting rule makers in their evidence-based analysis; iii) challenging the quality of regulatory proposals; iv) advocating for quality/better regulation. The report analyses the key factors contributing to success, as well as elements for the credibility of regulatory oversight. The report also finds that regulatory quality oversight represents a tool for policy coherence for countries and needs to be articulated with other core policies, such as microeconomic and competition-oriented reforms, as well as overall reforms of the public administration. Forging of a political constituency requires active communications, political buy-in and support from a champion, and an external constituency of interested parties to support advocacy. The report concludes with a possible checklist for policy makers interested in consolidating regulatory oversight in their respective national settings. |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaaa:19-en&r=reg |
| By: | Fioramanti, Marco |
| Abstract: | Since the mid of nineties European countries are registering an anemic growth of economic activity, in large part due to the dynamic of productivity. In 2010 the European Council adopted a new Agenda, Euro2020, which aim is to boost growth also improving European competitiveness. Regulation is one of the main factors influencing competitiveness. This paper focuses on the determinants of Total Factor Productivity (TFP) growth in 13 manufacturing sectors in a panel of 18 OECD countries from 1975 to 2007. Using the Stochastic Frontier Approach applied to the EU-KLEMS and OECD’s Regulation Impact Indicator database I found that, given the strong negative relationship between regulation and Technical Efficiency, which is one of the drivers of TFP, countries with still tight regulation in services could/should reduced it in order to improve their economic performance without detriment for public finances. |
| Keywords: | Total Factor Productivity; Technical Efficiency; Competition; Regulation; Stochastic Frontier. |
| JEL: | O47 C23 L59 |
| Date: | 2011–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32237&r=reg |
| By: | Matei, Ani; Matei, Lucica |
| Abstract: | The concepts and approaches of public marketing are moreover used and quantified in the national and European public systems. Adapted, with behaviours specific to the public system, the fundamental concepts of marketing represent a component of "the new culture of public service". The paper aims to present aspects concerning the use of the fundamental concepts of public marketing - service, market, placement -, in the European decision-making practice, respectively in the regulatory framework of the single market, in the framework of providing public goods and services in the European space. The paper emphasizes the impact of the application of infringement procedures during 1996-2010 on the market of services and satisfaction of citizens' needs. The regulation of the single market, the practices and „rules" of organisation and functioning are favouring the achievement of the economic and social function of the services of general interest, supporting the functionality of the internal market. The contribution of this paper consists in the analysis of the European regulations, of the content of procedures for sanctioning the EU Member States concerning the market and services from the prospect of the concepts of marketing, market, services, placement, satisfaction of public needs as well as of their interpretation. |
| Keywords: | infringement procedure; regulation; consumer; market; public service |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:nsu:apasro:334&r=reg |
| By: | Masazumi Hattori (Director and Senior Economist, Institute for Monetary and Economic Studies, Bank of Japan (E-mail: masazumi.hattori @boj.or.jp)); Kazuhiko Ohashi (Professor, Hitotsubashi University (E-mail: kohashi@ics.hit-u.jp)) |
| Abstract: | We consider an economy in which a lender finances his loans to borrowers by issuing a securitized product to investors, and where the credit quality of the product may depend on whether the lender screens the borrowers. In the presence of asymmetric information between the lender and the investors about the credit quality of potential borrowers, overvaluation of the low-quality securitized product may occur, inducing lender to not screen the borrowers and hence to issue a securitized product of low credit quality. This is likely to occur when the investors finds it difficult to distinguish the good state from the bad state, or when the seed of recession creeps toward the booming economy. A retention regulation that requires the lender to hold a minimum ratio of his own securitized products is not necessarily effective in solving this incentive problem. Even worse, in a certain situation, the retention regulation discourages the lender's screening effort and reduces welfare. |
| Keywords: | originate-to-distribute, securitization, asymmetric information, financial regulation, screening, verification, retention |
| JEL: | G14 G21 G24 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:ime:imedps:11-e-17&r=reg |
| By: | Carsten Burhop (Max Planck Institute for Research on Collective Goods, Bonn and University of Cologne); David Chambers (Judge Business School, University of Cambridge); Brian Cheffins (Faculty of Law, University of Cambridge) |
| Abstract: | This study of initial public offerings (IPOs) carried out on the Berlin and London stock exchanges between 1900 and 1913 casts doubt on the received “law and finance” wisdom that legally mandated investor protection is pivotal to the development of capital markets. IPOs that resulted in official quotations on the London Stock Exchange performed as well as Berlin IPOs despite the Berlin market being more extensively regulated than the laissez faire London market. Moreover, the IPO failure rate on these two stock markets was lower than it was with better regulated US IPOs later in the 20th century. |
| Keywords: | Regulation, Financial history, Law and finance, initial public offering, investor protection |
| JEL: | G32 K22 N23 G18 G38 G14 G24 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2011_15&r=reg |
| By: | McCann, Fergal; Dorsch, Michael; McGuirk, Eoin |
| Abstract: | This paper considers the relationship between democratic accountability in de- veloping countries and the policies they use to attract foreign direct investment (FDI). We isolate two policy areas that governments of developing countries use to attract FDI: the tax burden on firms and the regulatory standards within which they operate. Countries that maintain high business taxes can only attract FDI by offering a less regulated business environment, which may have associated po- litical costs. The extent to which democratic accountability constrains leaders in their tax/regulatory policy choices is our main line of analysis. The novelty of the paper is that it endogenously determines policy choices within a political economy framework that recognizes the trade-offs between attracting FDI and maintaining political control. Examination of firm-level survey data from foreign firms operating in eastern Europe and central Asian economies confirms our model's main conclusion: regulation is seen to be a relatively larger obstacle to doing business in countries with greater democratic accountability. -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:56&r=reg |
| By: | Patricia M. Danzon; Michael F. Furukawa |
| Abstract: | This paper examines the role of regulation and competition in generic markets. Generics offer large potential savings to payers and consumers of pharmaceuticals. Whether the potential savings are realized depends on the extent of generic entry and uptake and the level of generic prices. In the U.S., the regulatory, legal and incentive structures encourage prompt entry, aggressive price competition and patient switching to generics. Key features are that pharmacists are authorized and incentivized to switch patients to cheap generics. By contrast, in many other high and middle income countries, generics traditionally competed on brand rather than price because physicians rather than pharmacies are the decision-makers. Physician-driven generic markets tend to have higher generic prices and may have lower generic uptake, depending on regulations and incentives. Using IMS data to analyze generic markets in the U.S., Canada, France, Germany, U.K., Italy, Spain, Japan, Australia, Mexico, Chile, Brazil over the period 1998-2009, we estimate a three-equation model for number of generic entrants, generic prices and generic volume shares. We find little effect of originator defense strategies, significant differences between unbranded and unbranded generics, variation across countries in volume response to prices. Policy changes adopted to stimulate generic uptake and reduce generic prices have been successful in some E.U. countries. |
| JEL: | I11 I18 K2 L5 L65 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17226&r=reg |
| By: | Julien, François; Lamla, Michael |
| Abstract: | This paper aims at presenting the support schemes promoting the development of renewable energies in five major European countries, namely Germany, France, Italy, Spain and the United Kingdom. At first the reader will find brief country profiles, followed by a comparison of their competitiveness with regard to the type of public support available for project developers, the current level of feed-in tariffs, the stability of the regulatory framework, the quality of the wind or solar resource available, etc. Finally, a mapping will give a quick overview of the competitiveness of the five countries for each renewable energy reviewed in this study. The paper focuses on four technologies generating electricity from renewable sources: Onshore wind, Offshore wind, Photovoltaic solar energy and Concentrating solar power ('CSP', also known as solar thermoelectric power). -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:euvwdp:302&r=reg |
| By: | Margarita Kalamova; Nick Johnstone |
| Abstract: | This paper examines empirically whether countries with relatively more lax environmental regimes have a comparative advantage in their competition for foreign direct investment. It seeks to contribute to the literature in several important ways. First, we use a measure of environmental stringency which is based on managers’ perceptions of the stringency in a given country and which gives us the opportunity to analyse a broad sample of both source and host countries. Second, an important strength of the technical analysis is the non-linear modeling of the impact of policy stringency on FDI. Third, we use a ‘state-of-theart’ FDI modelling strategy, which allows us to differentiate between different models of production fragmentation. Support is found for the effect of relative environmental policy stringency on foreign direct investment patterns. However, the effect is relatively small in comparison with other factors, including more general regulatory quality. Moreover, the relationship appears to be non-linear with the effects of increased relative environmental policy stringency in the host country decreasing after a certain threshold. |
| Keywords: | governance, foreign direct investment, pollution haven, environmental policies, knowledge-capital model |
| JEL: | F18 F21 Q56 |
| Date: | 2011–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:33-en&r=reg |
| By: | MORIKAWA Masayuki |
| Abstract: | The achievement of both sustainable economic growth and reductions in CO2 emissions has been an important policy agenda in recent years. This study, using novel establishment-level microdata from the Energy Consumption Statistics, empirically analyzes the effect of urban density on energy intensity in the service sector. According to the analysis, the efficiency of energy consumption in service establishments is higher for densely populated cities. Quantitatively, after controlling for differences among industries, energy efficiency increases by approximately 12% when the density in a municipality population doubles. This result suggests that, given a structural transformation toward the service economy, deregulation of excessive restrictions hindering urban agglomeration, and investment in infrastructure in city centers would contribute to environmentally friendly economic growth. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11058&r=reg |