This paper focuses on the relationship between the stringency of regulation (OECD indicators) and total factor … in which the negative impact of the overall regulation on productivity is the result of opposite forces. Estimation … results tell us that only the stringency of entry regulation significantly reduces technological change, whereas vertical …

. Regulation, however, that adversely affects the incumbent directly, like ownership unbundling, decreases aggregate investment …-off between vertical economies and competition. Ownership unbundling and forced access to the incumbent transmission grid … increases competition but come at the cost of lost vertical economies. Generally, we find that regulation that affects only the …