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Regulatory reform, development and distributive concerns

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Author Info

  • Trillas, Francesc

    (Universitat Autonoma de Barcelona)

  • Staffiero, Gianandrea

    ()
    (IESE Business School)

Abstract

This survey reviews the relationship between regulation and distribution, focusing on regulatory reform in developing countries. The characteristics of these countries impose constraints on appropriate regulatory policies. These constraints condition: i) the terms of the trade-off between firms' rents and efficiency, including the commitment problem in the presence of sunk investments; and ii) the probability of success of removing cross-subsidies. The choices made at reforming infrastructure industries may have a significant impact on perceived distribution and development, and this impact will drive attitudes toward reform. Distributive problems are channeled through politics and institutions, conditioning the potential solutions to the commitment problem. These issues have been extensively explored by the academic literature, which provides guidance on how to address second-generation regulatory reforms.

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Bibliographic Info

Paper provided by IESE Business School in its series IESE Research Papers with number D/665.

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Length: 41 pages
Date of creation: 07 Jan 2007
Date of revision:
Handle: RePEc:ebg:iesewp:d-0665

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research

Keywords: regulation; privatization; infrastructures; development; distribution;

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Cited by:
  1. Brito Duarte & Pereira Pedro & Vareda João, 2013. "Investment, Dynamic Consistency and the Sectoral Regulator’s Objective," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 563-594, August.
  2. 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.

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