Price caps, rateofreturn regulation, and the cost of capital, world bank other operational studies 11575, the world bank. An assessment duffie ecb forum on central banking june 2016 4 of its already weakened banking system to shaky sovereign debt and from worries over the future path of the eurozone. Regulatory reform, armstrong, cowan and vickers, mit press, 1994. It then moves on to the analysis of various aspects of strategic interaction between firms and the determinants of industrial structure. Regulatory reform had its beginnings in the united states in the 1970s, and today it is taking. Novak a revisionist history of regulatory capture 1. Pdf this paper assesses the theory and practice of pricecap. Good regulatory practices grp and regulatory impact analysis ria workshop april 2426, 2017 riyadh, saudi arabia monday, 24 april 0830 0840 welcoming remarks h. Tran5271m reading lists library university of leeds. During the course also journal articles will be discussed. The economics of telecommunications and its regulation james hodge and keith weeks 82. The italian highway industry has undergone an institutional and regulatory reform through the last decade, characterised by changes in ownership and a new price. Appendix v aa2 report on the eras draft decision by.
A theory of incentives in regulation and procurement, laffont. The literature suggests that regulatory policies affect utilities investment decisions differently, depending on which type of investment in cost reducing or infrastructure the firm undertakes armstrong and sappington, 2006. Railroad revitalization and regulatory reform act of 1976, public law 94210, 90 stat. The prevailing regulatory framework embodies elements of traditional public utility regulation, including fully distributed costing. Be able to evaluate social e ects of di erent industry structures and di erent forms of. Mark armstrong, simon cowan and john vickers, the mit press, cambridge, 1994, 392 pp. Carleton university department of law course outline. Economie publique ii economics of regulation econd421. If water usage always is less than inflow throughout the year, water system design is greatly simplified. The final report of the uks independent commission on banking, chaired by sir john vickers, was published on 12 september 2011. It starts by examining the internal structure of firms. Economic analysis and british experience information economics and policy 10 september, 1998 389401.
The term project in this course can either be an economic analysis of a major regulatory decision or a research project on regulatory policy. Setting the x factor in pricecap regulation plans springerlink. When the firmas costreducing effort depends on the output supplied, a binding pricecap, by compelling the monopolist to produce more, finally results in lower costs. Conduct regulation kay and vickers 1988 in an early analysis of uk regulatory reform distinguish conduct regulation from structure regulation. Typically, regulatory interventions that deliver no extra profit to the firm, even when its operating costs decline like in a rate of return regulation.
A theory of incentives in regulation and procurement, laffont j. Public utility regulation arose naturally in the nineteenth century for gas, water, rail, telegraph, and later, electricity and telephony because these utilities require a fixed network to deliver. Armstrong m, cowan s, vickers j 1994 regulatory reform. The liberalization of the natural gas retail market in greece. Good regulatory practices grp and regulatory impact. A synthesis, journal of industrial economics, wiley blackwell, vol. See the discussion in armstrong, cowen and vickers 1994 pp. Tariff dummies dummy for controlling for the specific regulatory scheme i. New directions in the south african economy, johannesburg, 1012 september 2001. Regulatory reform and the system operator model dieter helm 10th january 2017 regulation grows.
Reports, articles in professional journals and news magazines and other citations are included in a separate section at the end of this bibliography. Lessons from the uk simon cowan university of oxford department of economics manor road building oxford ox1 3ul, uk simon. This bibliography includes books, book chapters and articles in academic journals. Below i also list optional readings, marked by, for. The defining economic features of telecommunications. Edward donelan senior associate edward donelan was formerly advisor to sigma programme sigma support for improving government management and administration, a joint initiative between the european commission and the oecd to assist 28 candidate and potential eu candidate countries and neighbourhood countries with regulatory policy and. On the basis of a twoperiod asymmetric information model with a repeated. Kirschen d, strbac g 2004 fundamentals of power system economics. Regulatory reform economic analysis and uk experience, 1994, mit press with simon cowan and john vickers. This course provides an introduction to current theory and empirical work in industrial economics. Competition and regulatory reform in the turkish electricity industry 1 zak atiyas and mark dutz september 2004 introduction turkey has initiated a major overhaul of the legal and regulatory framework surrounding the electricity industry. Simon cowan, the journal of regulatory economics, 54, 1, august 2018, pp. Economic analysis and british experiencecambridge, mas.
Pdf rateofreturn regulation versus price regulation. The european experience, oxford university press, oxford. The economics of telecommunications and its regulation. Kay and vickers 1988 in an early analysis of uk regulatory reform distinguish conduct.
In contrast, if firms allowed revenues do not depend on realized. Simon cowan is university lecturer in economics, department of economics. Ilic m, galiana f, fink l 1998 power system restructuring. This paper examines the possibility that regulation actually increases a monopolistas costefficiency. Stoft s 2002 power system economics, designing markets for electricity. Universita degli studi di padova dipartimento di scienze. The idea of regulatory capturehas controlled discussions of economic regulation and regulatory reform for more than two generations.
Pdf regulation, competition and liberalization researchgate. Regulatory reform had its beginnings in the united states in the 1970s, and today it is taking place around the globe. By mark armstrong, simon cowan and john stuart vickers. Moore and tom rose executive summary t here is a growing realization in the united states that regulation, for all its apparent benefits, comes. Pdf rateofreturn regulation versus price regulation for. Therefore, there is very little evidence on judge the history of the regulatory intervention in the industry or to support the implementation of the current regulatory framework or the need of its further reform. General issues associated with applying these principles in practice are identified. According to simon cowan, the theoretical literature has shown that simple forms of regulation of the level and structure of a monopolists prices yield clear. Governance, regulation and powers on the internet edited. Access pricing and introducing competition into network industries 6. Regulatory reform tackles this important policy issue in two parts. Armstrong, cowan and vickers 1993, chapter 2, pp2639. Outline november 2016 2 of 4 possess a thorough understanding of selected analytical models employed in industrial organization. Economic analysis and british experience regulation of economic activity mark armstrong, simon cowan, john vickers on amazon.
Private securities litigation reform act of 1995 statements included in this announcement that are not historical facts are forward looking statements. Economic analysis and british experience regulation of economic activity mark armstrong, simon cowan, john vickers on. Regulation in practice electricity, pipelines, and telecommunications term project. The staggers rail act of 1980 substantially reduced regulation of the us freight rail industry. The dynamics of regulation commitment and renegotiation competition vs. Economics of market regulation 6 ects economics of market regulation 2 materials armstrong, m. Laws 4209 c protecting consumer rights in the marketplace term. Incentive regulation theory and practice reformatted 126. University of groningen russian gas for europe smeenk, tom. Regulatory reform has emerged as an important policy area in oecd and nonoecd countries. The paper will attempt to evaluate the reform process in light of the regulatory framework established at the level of the european union eu and the. Regulations arise from particular circumstances, either in response to a problem or to political pressure. Johnson 1962 behaviour of the firm nder regulatory u constraint.
This paper studies access pricing under three regimes. Legislatures and finance ministers around the world empowered financial regulators to rehabilitate on a grand scale. Once the building controllers from the eight state and territory governments agreed in principle with the key reform tenets it was resolved that the writer would write to the relevant building control ministers to seek their permission to communicate with the standing committee of attorneys general scag. Books regulatory reform, armstrong, cowan and vickers, mit press, 1994. There are always more things that politicians, regulators and the multiple vested interests want to do. Regulated versus negotiated access pricing in vertically. The international hellenic university ihu was established in october 2005 by law no.
Perhaps regulatory practice evolved this way due to the absence of a sound theoretical incentive regulation framework to apply in practice. We follow that distinction and focus in this section on the regulation of behaviour taking industry structure and entry conditions as given. Economic analysis and british experience, mit press, 1994. Access arrangement information for the period 1 july 2012 to 30 june 2017 aai appendix v aa2 report on the eras draft decision by professor george yarrow and. The european experience, oxford university press, oxford, 019. Economic analysis and british experience1999 10611.
Economic analysis and british experience, cambridge, mass mit press, 1994. Economic analysis and british experience, mit press, cambridge, mass, usa, 1994. One of the central questions for industrial policy is how to regulate firms with market power. References books regulatory reform, armstrong, cowan and vickers, mit press, 1994. The ihu is greeces first public university where programmes are taught exclusively in english. Competition and regulatory reform in the turkish electricity industry 1 zak atiyas and mark dutz. Its recommendations include ringfencing uk banks retail banking operations, higher capital requirements for uk retail banks, preferential status for insured deposits in a bank insolvency and measures to increase competition in the. Originating soon after world war ii, the socalled capture thesis an earlywas harbinger of the more general critique of the american regulatory state that dominated the closing decades of the 20 th century. These include new duties and responsibilities, new incentives, and most of all. There are no prerequisites, but previous course work in legal studies and economic and social policy may be. The paranoid style in regulatory reform scholarship. The model building act in australia the regulatory. Petitions that have not been accepted are subsequently sent to the prime ministers.