Regulation and Economic Analysis: A Critique Over Two Centuries argues that long experience with the practice of regulation creates a broad anti-intervention consensus among economists. This consensus is based on comparison of real intervention to real markets rather than an ideological preconception. It is shown that economic theory can support all possible positions on intervention. Much theory is too abstract to support any policy position; many arguments about how intervention might help contain qualifications expressing doubts about whether the potential can be realized; many...
Regulation and Economic Analysis: A Critique Over Two Centuries argues that long experience with the practice of regulation creates a broad a...
The class is theory of price regulation assumed that the regulator knows the fIrm's costs, the key piece of information that enables regulators to pressure fmns to choose appropriate behaviors. The "regulatory problem" was reduced to a mere pricing problem: the regulator's goal was to align price with marginal cost, subject to the constraint that revenues must cover costs. Elegant and important insights ensued. The most important was that regulation was inevitably a struggle to achieve second-best outcomes. (Ramsey pricing was a splendid example. ) Reality proved harsh to regulatory theory....
The class is theory of price regulation assumed that the regulator knows the fIrm's costs, the key piece of information that enables regulators to pre...
xiii - We have almost the cheapest letter price in the OEeD. - We've quadrupled the retail outlets where you can buy stamps, but closed three quarters of our Post Offices. On time delivery is better than 97%. - The workforce has been reduced by 40%, with a 25% increase in volumes over the period. Real unit costs, measured by total real expenditure divided by total volumes, have been reduced by over 20%. What do these results and achievements mean for policy setters around the world? In particular, do these results for New Zealand Post prove that it is a commercial business, and what are the...
xiii - We have almost the cheapest letter price in the OEeD. - We've quadrupled the retail outlets where you can buy stamps, but closed three quarters...
This book is based on a conference on Regulation and the Evolving Nature of Postal and Delivery Services: 1992 and Beyond' held at Village PTT, La Londe les Maures, France, on March 18, 1992. Leading practitioners, worldwide postal administrations, and the express delivery industry, as well as a number of regulators, academic economists, and lawyers examine the important policy and regulatory issues facing the postal and delivery industries. This includes such issues as: international postal policy and the role of the Universal Postal Union; regulation and terminal dues; competition, entry...
This book is based on a conference on Regulation and the Evolving Nature of Postal and Delivery Services: 1992 and Beyond' held at Village PTT, La Lon...
This monograph is the proceedings of a symposium held at the University of California at Berkeley, September 12-14, 1990. It was sponsored by the Electric Power Research Institute (EPR ) and by the University of California University-Wide Energy Research Group (UERG). The sympo- sium brought together researchers and practitioners from academia, the utility industry, private and public organizations and regulatory agencies to address various challenges and opportunities related to product differen- tiation in the electric power industry. Electric utilities are evolving rapidly from...
This monograph is the proceedings of a symposium held at the University of California at Berkeley, September 12-14, 1990. It was sponsored by the Elec...
It is common to assert that utility investors are compensated in the allowed rate of return for the risk of large disallowances, such as arise for investments found imprudent or not used and useful'. However, this book develops a new theory of asymmetric regulatory risk that shows that infallible estimates of the cost of capital are sure to provide downward-biased estimates of the necessary allowed rates of return in the presence of such regulatory risks. The book uses the new theory of regulatory risk to understand recent developments in the risk of natural gas pipelines and other regulated...
It is common to assert that utility investors are compensated in the allowed rate of return for the risk of large disallowances, such as arise for inv...
Modem industrial society functions with the expectation that electricity will be available when required. By law, electric utilities have the obligation to provide electricity to customers in a "safe and adequate" manner. In exchange for this obligation, utilities are granted a monopoly right to provide electricity to customers within well-defmed service territories. However, utilities are not unfettered in their monopoly power; public utility commissions regulate the relationship between a utility and its customers and limit profits to a "fair rate of return on invested capital. " From its...
Modem industrial society functions with the expectation that electricity will be available when required. By law, electric utilities have the obligati...
Title IV of the Clean Air Act Amendments effectively transfers an environmental property right, the difference in unrestricted emissions and the yearly endowment, 3 from certain fIrms to the public domain. Phase I is to reduce annual SOz emissions of 261 large (100 MW or more) utility generating units with emissions greater than 2. 5 IbslmmBtu. The yearly endowment during Phase I is equal to 2. 51bslmmBtu times the 1985-1987 baseline energy usage. Phase I standards are required to be met by 1995, an exception being units that install certain control technologies. In this case, units may...
Title IV of the Clean Air Act Amendments effectively transfers an environmental property right, the difference in unrestricted emissions and the yearl...
Postal service has received considerably less attention in the economics literature than traditional public utilities. Postal service is facing some very important challenges arising out of the increasingly high-tech nature of postal service, the entry of competition into the business, and new attitudes on the part of government to postal service. In the United Kingdom and Germany the increased interest in privatization and recognition of the benefits of competition are likely to have an impact on postal service. These challenges mean that postal managers must learn new ways of doing...
Postal service has received considerably less attention in the economics literature than traditional public utilities. Postal service is facing some v...
This monograph is concerned with the determination of the allowed rate ofreturn in rate cases which, in part, determines the rates ofcharge to customers of public utilities. Rate of return determination has been a central topic in utility regulation for a century. Recent changes in the traditionally regulated markets - electricity, gas, and telephone - have shoved discussion of rate of return determination into the background, replacing it by technology changes, competition, downsizing, deregulation, and reg'ulatory incentive systems. These new issues have made the regula- tory sector, which...
This monograph is concerned with the determination of the allowed rate ofreturn in rate cases which, in part, determines the rates ofcharge to custome...
