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on Regulation |
| By: | Burger, Ronelle (Stellenbosch University); Dasgupta, Indraneel (Centre for Studies in Social Sciences, Calcutta); Owens, Trudy (University of Nottingham) |
| Abstract: | We develop a model of regulation of service-delivery NGOs, where future grants are conditional on prior spending of some minimal proportion of current revenue on direct project-related expenses. Such regulation induces some NGOs to increase current project spending, but imposes wasteful costs of compliance verification on all NGOs. Under a large class of parametric configurations, we find that regulation increases total discounted project expenditure over a regime of no regulation, when verification costs constitute no more than 15% of initial revenue. We characterize the optimal regulatory policy under these configurations. We apply our analysis to a large sample of NGOs from Uganda, and find regulation to be beneficial in that context. |
| Keywords: | regulation of non-governmental organizations, developing countries, Uganda |
| JEL: | G18 L31 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6221&r=reg |
| By: | Romain Lestage (TEMEP, College of Engineering, Seoul National University); David Flacher (Centre d'Economie de l'universite Paris Nord (CEPN)) |
| Abstract: | Abstract In a 2006 paper, Graeme Guthrie underlined that “[T]he impact of access price level on investment is not yet fully understood” and that “even less is known about the overall impact on welfare” (Guthrie 2006, p. 965). Although important progress has been made on the former issue, the latter remains largely underinvestigated. This paper contributes to addressing this question by analyzing the optimal access price in different investment games. Our main findings are as follows: 1. When only one firm can invest and when only service-based competition is feasible, the optimal access price is such as the flat part is as high as possible and the variable part equals the marginal cost. 2. The optimal variable part is lower when only service-based competition is possible than when several firms can invest, although there is too much duplication in the latter case. 3. When several firms can invest, the optimal access price is such as the flat part is as high as possible and the variable part is higher than the marginal cost. These results arise because the variable part determines both private incentives to invest and to duplicate and the extent to which investment and duplication are socially desirable. |
| Keywords: | Access regulation, infrastructure investment, welfare. |
| JEL: | L13 L43 L51 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:201185&r=reg |
| By: | Andreas Haller; Christian Jaag; Urs Trinkner |
| Abstract: | There is a broad theoretical end empirical economic literature discussing the effects of termination charges on competition and retail prices. Most of this literature has focused on the telecommunications markets. Termination charges in the international parcel market have not yet received much attention in the economic literature. The aim of this paper is to fill this gap and to analyze the economics of termination charges for parcels. We find that the economics of termination charges in the international parcel market are different to termination charges in other mar-kets. Based on these findings the paper presents a number of practical solutions and potential regulatory remedies to the dilemma of termination charges in the international parcel market. |
| Keywords: | International parcel market, Termination charges, Remuneration system |
| JEL: | L14 L87 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:chc:wpaper:0028&r=reg |
| By: | Ba, Lika (Ecole des Hautes Etudes en Sciences Sociales, Paris); Gasmi, Farid (Toulouse School of Economics (Arqade & Idei)) |
| Abstract: | The main goal of this study is to demonstrate the existence of a significant empirical link between infrastructure and financial sectors reforms the effects of which are reflected in infrastructure sectors performance. This paper reports on the findings of an exploration of this issue for the case of the power sector in developing countries. We estimate the impact of the four main components of the power sector reform in these countries, namely, the creation of an independent regulatory agency, the unbundling of generation, transmission, and distribution, the introduction of competition and the implementation of privatization programs in the generation and distribution segments, on some of this sector’s performance outcomes, and attempt to assess the contribution of the domestic financial systems’ reforms to these outcomes. In a dataset on 42 developing countries covering the 1990-2005 period, we find that private participation in generation and distribution has significantly improved power supply as reflected in higher electricity generation per capita and technical and labor efficiency in the distribution segment. The unbundling of generation, transmission, and distribution has contributed to improving productive efficiency through a better use of the labor factor in the distribution segment. We find that the creation of a separate regulatory agency has boosted the generation segment in terms of both capacity and sales and has generated better incentives for a more efficient use of labor input in the distribution segment. We also find that regulatory experience has significantly contributed to improving access to electricity. The results suggest that while the power sector, in particular, its generation segment, has significantly benefited from the introduction of independent regulation, the beneficial effects of (good) regulatory practices have been exacerbated by the modernization of the financial systems. More specifically, improved financial systems have eased access to capital for operators allowing them to upgrade their networks and decrease power losses in distribution. The overall results obtained in this paper strongly recommend that along with reforming the power sector, policy makers in developing countries should implement the financial reforms that would deepen their domestic financial systems thus allowing them to recover the full benefits of these systems’ positive externalities on the performance of the sector. |
| Keywords: | Developing countries, electricity industry performance, privatization, regulation, unbundling, competition, financial sector development |
| JEL: | L2 L33 L94 L98 O16 C23 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:25318&r=reg |
| By: | Joseph E. Aldy; William A. Pizer |
| Abstract: | In order to clarify ongoing debates over the competitiveness impacts of climate change regulation, we develop a precise definition that can be estimated with available domestic production, trade, and energy price data. We use this definition and a 20+ year panel of 400+ U.S. manufacturing industries to estimate and predict the effects a U.S.-only $15 per ton CO2 price. We find competitiveness effects on the order of a 1.0 to 1.3 percent decline in production among energy-intensive manufacturing industries, representing about one-third of the policy’s impacts on these firms’ output. |
| JEL: | F18 Q52 Q54 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17705&r=reg |
| By: | Elettra Agliardi (Department of Economics, University of Bologna and Rimini Center for Economic Analysis); Luigi Sereno (Department of Economics, University of Bologna) |
| Abstract: | The effects of four environmental policy options for the reduction of pollution emissions, i.e. taxes, emission standards, auctioned permits and freely allocated permits, are analyzed. The setup is a real option model where the amount of emissions is determined by solving the firm's profit maximization problem under each policy instrument. The regulator solves an optimal stopping problem in order to find the critical threshold for policy adoptions taking into account revenues from taxes and auctioned permits and government spending. In this framework, we find the ranking of the alternative policy options in terms of their adoption lag and social welfare. We show that when the output demand is elastic emission standards are preferred to freely allocated permits. Taxes and auctioned permits are always equivalent in terms of their adoption lag and social welfare and also equivalent to emission standards when the regulator redistributes revenues. |
| Keywords: | Environmental policies; Taxes; Emission standards; Permits; Public abatement spending; Optimal implementation time; Real options |
| JEL: | Q28 Q L51 H23 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:53_11&r=reg |
| By: | Orbeta, Aniceto Jr. C.; Abrigo, Michael Ralph M. |
| Abstract: | This paper reviews the Philippine international labor migration management infrastructure using Regulatory Impact Analysis (RIA) framework. Thirty years of government experience in managing high-volume labor migration has resulted to a network of institutions and policies dedicated to promote the welfare of migrant workers. This paper seeks to describe the migration management infrastructure based on the laws and regulations promulgated governing international labor migration, and on the mandates of public institutions created and the procedures it introduced. Consistent with the RIA framework it also describes the impact on the overall international migration sector as well as on a specific component – the household service workers. Although the Philippines is considered by many as the global model in managing international labor migration, indicative weaknesses in the system is recognized. The paper highlights the need for greater coordination among public institutions as well as the strengthening of its manpower composition. It also highlights the fact that the policy initiatives can miss their mark such as the initiative to professionalize the household service workers sector which are either largely ignored or not known to migrant workers concerned. |
| Keywords: | Philippines, international migration, Regulatory Impact Analysis |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2011-33&r=reg |
| By: | Lupo Pasini, Federico (Asian Development Bank Institute) |
| Abstract: | Capital controls and exchange restrictions are used to restrict international capital flows during economic crises. This paper looks at the legal implications of these restrictions and explores the current international regulatory framework applicable to international capital movements and current payments. It shows how international capital flows suffer from the lack of a comprehensive and coherent regulatory framework that would harmonize the patchwork of multilateral, regional, and bilateral treaties that currently regulate this issue. |
| Keywords: | capital controls; exchange restrictions; international capital flows; economic crises |
| JEL: | F13 F31 F32 F53 |
| Date: | 2012–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0338&r=reg |
| By: | Battistella, Graziano; Park, Jung Soo; Asis, Maruja M.B. |
| Abstract: | This report presents the findings of a study which sought to examine the impact of Philippine government regulations on the status of Filipino domestic workers. The Migrants Workers and Overseas Filipinos Act of 1995 or RA 8042 and its amendments (RA 9422 in 2006 and RA 10022 in 2010) were aimed at enhancing the protection of migrant women, especially those in domestic work. Part I of the report discusses the regulatory framework set in place by the Philippine government for the purpose of protecting Filipino migrants engaged in domestic work. Part II of the report is dedicated to assessing the outcomes of government regulations on the experiences of Filipino domestic workers. The review of literature, development of instruments, data collection, processing of data, and report writing took place between July and December 2010. The report concludes with lessons learned and policy recommendations, which are outlined in Part III. The study highlighted significant gaps in migrant workers` knowledge and understanding of government regulations. Based on the survey of domestic workers prior to migration, many departing migrant workers were not aware of basic work rights and government regulations, particularly those concerning the HSW reform package. The survey findings also indicate the violation of many government regulations. It is clear from the survey that if respondents had a choice, they would have wanted to work at another job. The key recommendations based on findings and insights from the study are programs on migration must be improved to promote awareness and understanding of basic policies, rights, and decent work conditions. Migrant workers` education program must be reinforced with post-arrival orientation programs in the destination countries must be improved. Reintegration services to distressed migrant domestic workers need to be expanded. An important step forward is a review of the HSW reform package in dialogue and consultation with the different stakeholders. Particularly for the government, it must pursue a clear and coherent policy concerning the deployment of domestic workers. |
| Keywords: | Philippines, basic services, economic theory, Neo-classical theory, choice theory, macroeconomic models, reproductive health bill, Migrants Workers and Overseas Filipinos Act, domestic workers, HSW reform package, domestic worker emigration, emigration regulations, emigration policy improvement |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2011-12&r=reg |
| By: | Schmitz, Hendrik (RWI); Ziebarth, Nicolas R. (Cornell University) |
| Abstract: | This paper provides field evidence on (a) how price framing affects consumers' decision to switch health insurance plans and (b) how the price elasticity of demand for health insurance can be influenced by policymakers through simple regulatory efforts. In 2009, in order to foster competition among health insurance companies, German federal regulation required health insurance companies to express price differences between health plans in absolute Euro values rather than percentage point payroll tax differences. Using individual-level panel data, as well as aggregated health plan-level panel data, we find that the reform led to a sixfold increase in an individual's switching probability and a threefold demand elasticity increase. |
| Keywords: | health insurance, health plan switching, price competition, price elasticity, SOEP |
| JEL: | H51 I11 I18 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6241&r=reg |
| By: | Lambert, F.; Ramos-Tallada, J.; Rebillard, C. |
| Abstract: | The surge in capital inflows towards emerging countries after 2009 has revived the debate about capital controls. This paper analyzes some of the international implications of restrictions on capital inflows. Focusing on a sample of Latin-American countries, we use detailed balance of payments data and higher frequency data on portfolio bond and equity flows to investigate the potential spillover effects that capital controls imposed in one country may have on neighboring economies. Using various econometric approaches, we find that a rise in the Brazilian tax on portfolio bond inflows has been affecting other Latin-American economies through significant surges in portfolio funds invested either in fixed income or equity securities. The effect is usually short lasting and followed by rapid reductions in those inflows. Yet it can be large. According to our estimates, the increase in the Brazilian tax on portfolio bond inflows may account for the entire surge in bond inflows to Mexico between September and October 2010. |
| Keywords: | capital flows, capital controls, spillovers, Latin America, VAR. |
| JEL: | F32 F33 F42 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:357&r=reg |