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Regulatory Trade-Offs in the Design of Concession Contracts

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Author Info
Crampes, C.
Estache, A.

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Abstract

The paper discusses how conflicts between the multiple objectives of policymakers (efficiency, equity, fiscal, speed of reform, signaling...) can influence the optimal design of concessions contracts for network services in infrastructure. The discussion covers the relevance of information asymmetries of the optimal regulatory regime and processes, for the optimal design of awarding processes and for the optimal duration of the contracts. It also adresses the de sign of pricing in relation withthe universal service obligation. It concludes with an illustration of the preceding economic principles with some stylized facts from the liberalization experiment in Argentina.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 97.462.

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Length: 19 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:gremaq:97.462

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Related research
Keywords: REGULATION FINANCIAL MARKET

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Find related papers by JEL classification:
G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

Cited by:
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  1. Estache, Antonio & Quesada, Lucia, 2001. "Concession contract renegotiations : some efficiency versus equity dilemmas," Policy Research Working Paper Series 2705, The World Bank. [Downloadable!]
  2. Thorsten Beckers & Christian von Hirschhausen & Jan Peter Klatt, . "Reformbedarf bei den Bundesfernstraßen und das Potential des PPP-Ansatzes," Working Papers 2006-03, Center for Network Industries and Infrastructure (CNI), revised 19 Jun 2006. [Downloadable!]
  3. Sudong Ye & Robert L. K. Tiong, 2003. "Tariff adjustment frameworks for privately financed infrastructure projects," Construction Management & Economics, Taylor and Francis Journals, vol. 21(4), pages 409-419, January. [Downloadable!] (restricted)
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This page was last updated on 2008-9-21.


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