Liberalisation in a world of second best: evidence on European network industries
AbstractThis article reports mixed results about the impacts of liberalisation in European network industries. Telecommunications prices have fallen and converged across EU-15, but electricity and gas prices have either increased or diverged. Productivity has increased, but mainly as a result of falling employment in absolute and relative terms. Liberalised industries are still characterised by high levels of market concentration and low levels of transparency and market integration. These findings are in line with the predictions of the theory of second best and suggest that the case for liberalisation of network industries has been oversold.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17873.
Date of creation: 27 Feb 2009
Date of revision: 13 Oct 2009
Liberalisation; network industries; second-best; public policy; European Union;
Find related papers by JEL classification:
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D4 - Microeconomics - - Market Structure and Pricing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
- NEP-ENE-2009-11-07 (Energy Economics)
- NEP-NET-2009-11-07 (Network Economics)
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