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Commitment and Regulatory Independence in Practice in Latin American and Caribbean Countries

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  • F. Trillas
  • M.A. Montoya

Abstract

We present an analysis of the evolution of regulatory independence in practice for 23 Latin American and Caribbean countries in the telecommunications industry. Based on this analysis, we construct indices of regulatory independence, which improve upon the measures that have been used so far in the empirical regulation literature. Our measures are consistent with the fact that legal independence does not solve, but it relocates, the commitment problem of utility regulation. We show that legal indices may give a partially distorted picture of the commitment ability of institutions. In addition, treating independence as exogenous may underestimate its impact. The combination of de facto and de jure independence has a positive (probably modest nonetheless) impact on network penetration in telecommunications markets.

Suggested Citation

  • F. Trillas & M.A. Montoya, 2011. "Commitment and Regulatory Independence in Practice in Latin American and Caribbean Countries," Competition and Regulation in Network Industries, Intersentia, vol. 12(1), pages 27-57, March.
    • Handle: RePEc:sen:journl:v:12:i:1:y:2011:p:27-57
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    Citations

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    Cited by:

    1. De Meio Reggiani, Martin C. & Vazquez, Miguel & Hallack, Michelle & Brignole, Nélida B., 2019. "The role of governmental commitment on regulated utilities," Energy Economics, Elsevier, vol. 84(C).
    2. Carlo Cambini & Laura Rondi & Yossi Spiegel, 2012. "Investment and the Strategic Role of Capital Structure in Regulated Industries: Theory and Evidence," Chapters, in: Joseph E. Harrington Jr & Yannis Katsoulacos (ed.), Recent Advances in the Analysis of Competition Policy and Regulation, chapter 13, Edward Elgar Publishing.
    3. EZZAT Riham Ahmed, 2015. "Paving the Way for Better Telecom Performance: Evidence from the Telecommunication Sector in MENA Countries," Review of Network Economics, De Gruyter, vol. 14(3), pages 157-199, September.
    4. Whitacre, Brian & Gallardo, Roberto, 2020. "State broadband policy: Impacts on availability," Telecommunications Policy, Elsevier, vol. 44(9).
    5. Andrés Pavón Mediano, 2020. "Agencies’ formal independence and credible commitment in the Latin American regulatory state: A comparative analysis of 8 countries and 13 sectors," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 102-120, January.
    6. Riham Ahmed Ezzat, 2015. "Paving the way for better telecom performance: Evidence from the telecommunication sector in MENA countries," Post-Print halshs-01164199, HAL.
    7. Francesc Trillas Jané, 2016. "Behavioral Regulatory Agencies," Working Papers wpdea1606, Department of Applied Economics at Universitat Autonoma of Barcelona.
    8. Riham Ahmed Ezzat, 2015. "Paving the way for better telecom performance: Evidence from the telecommunication sector in MENA countries," Documents de travail du Centre d'Economie de la Sorbonne 15039, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    9. Cambini, Carlo & Franzi, Donata, 2013. "Independent regulatory agencies and rules harmonization for the electricity sector and renewables in the Mediterranean region," Energy Policy, Elsevier, vol. 60(C), pages 179-191.
    10. Laura Abrardi & Cambini Carlo & Rondi Laura, 2018. "The Impact of Regulation on Utilities’ Investments: A Survey and New Evidence from the Energy Industry," De Economist, Springer, vol. 166(1), pages 41-62, March.
    11. Bertoméu-Sánchez, Salvador & Camos, Daniel & Estache, Antonio, 2018. "Do economic regulatory agencies matter to private-sector involvement in water utilities in developing countries?," Utilities Policy, Elsevier, vol. 50(C), pages 153-163.

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