Price caps, efficiency pay-offs and infrastructure contract renegotiation in Latin America
Twenty years ago, as the United Kingdom was getting ready to launch the privatization of its public services, Professor Littlechild developed and operationalized the concept of price caps as a regulatory regime to control for residual monopoly conditions in those services. Ten years later, Latin American countries, as they embarked into their own infrastructure reforms, also adopted the price cap regulatory model. Relying on a large data base on the factors driving contract renegotiation in the region and a survey of the literature on efficiency gains, the authors assess the impact of this regulatory regime in Latin America. They show that while the expected efficiency gains were amply achieved, these gains were seldom passed on to the users. Instead they were shared by the government and the firms. Moreover, the adoption of price caps implied higher costs of capital and hence, tariffs, and brought down levels of investment.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||2003|
|Date of revision:|
|Note:||Conference paper presented at: The UK model of regulation: a retrospective of the 20 years since the(April 9, 2003: London, UK)|
|Contact details of provider:|| Postal: CP135, 50, avenue F.D. Roosevelt, 1050 Bruxelles|
Web page: http://difusion.ulb.ac.be
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eduardo Engel & Ronald Fischer & Alexander Galetovic, 1999. "The Chilean Infrastructure Concessions Program: Evaluation, Lessons and Prospects for the Future," Documentos de Trabajo 60, Centro de Economía Aplicada, Universidad de Chile.
- Rossi, Martín, 2000.
"Technical Change and Efficiency Measures: The Post-privatisation in the Gas Distribution Sector in Argentina,"
UADE Working Papers
7_2000, Instituto de Economía, Universidad Argentina de la Empresa.
- Rossi, Martin A., 2001. "Technical change and efficiency measures: the post-privatisation in the gas distribution sector in Argentina," Energy Economics, Elsevier, vol. 23(3), pages 295-304, May.
- M. Resende & L. O. Facanha, 2002. "Privatization and efficiency in Brazilian telecommunications: an empirical study," Applied Economics Letters, Taylor & Francis Journals, vol. 9(12), pages 823-826.
When requesting a correction, please mention this item's handle: RePEc:ulb:ulbeco:2013/44100. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benoit Pauwels)
If references are entirely missing, you can add them using this form.