Regulation under Financial Constraints
AbstractThis article studies a simple procurement problem (Laffont and Tirole,1993) where the regulator faces a cash-in-advance constraint. The introduction of such a constraint not only reduces the amount of public good provided but also limits the instruments available to the regulator. The wealth constraint could change the optimal regulatory contract from a two-part tariff, where the quantities produced depend on the firm's cost, to a less efficient fixed fee where the firm produces the same quantity whatever its cost. Copyright CIRIEC, 2004.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Annals of Public and Cooperative Economics.
Volume (Year): 75 (2004)
Issue (Month): 4 (December)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788
Other versions of this item:
- Axel Gautier, 2002. "Regulation under Financial Constraints," Bonn Econ Discussion Papers bgse16_2002, University of Bonn, Germany.
- GAUTIER, Axel, . "Regulation under financial constraints," CORE Discussion Papers RP -1815, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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- Antonio Estache & L. Wren-Lewis, 2008. "Towards a Theory of Regulation for Developing Countries: Following Laffont's Lead," Working Papers ECARES 2008_018, ULB -- Universite Libre de Bruxelles.
- Anthon, Signe & Bogetoft, Peter & Thorsen, Bo Jellesmark, 2007. "Socially optimal procurement with tight budgets and rationing," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1625-1642, August.
- Tigran Melkonyan & Michael H. Taylor, 2013.
"Regulatory Policy Design for Agroecosystem Management on Public Rangelands,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 95(3), pages 606-627.
- Tigran Melkonyan & Michael Taylor, 2010. "Regulatory Policy Design for Agroecosystem Management on Public Rangelands," Working Papers 10-007, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.
- Axel Gautier & Manipushpak Mitra, 2002.
"Financing Infrastructure under Budget Constraint,"
Bonn Econ Discussion Papers
bgse15_2002, University of Bonn, Germany.
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