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significant impact. Finally, either regulatory instrument may induce the highest technology investment levels. …
Persistent link: https://www.econbiz.de/10010238324
This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …
Persistent link: https://www.econbiz.de/10011507879
investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm s value due to profit sharing, linking this reduction to the …
Persistent link: https://www.econbiz.de/10011509471
This paper studies the investment decision by a monopolistic internet service provider (ISP) in different regulatory ….s investment incentive and social welfare. Furthermore, the investment level is higher if the regulated ISP is allowed to charge … the CPs. Finally, a socially optimal investment can be opposite to the ISP's choice when the contents are enough …
Persistent link: https://www.econbiz.de/10012158085
to invest compared to autarky. The investment levels remain inefficient though. With generation facilities over-investment … occurs sometimes, while systematic under-investment occurs for transportation facilities. Free-riding reduces the incentives … to invest in these public-good components, while business-stealing tends to reduce the capacity for financing new …
Persistent link: https://www.econbiz.de/10009571212
This paper addresses the issue of how regulatory constraints affect firm's investment choices when the firm has the … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that these rules are identical in their impact on investment choices, in that the …
Persistent link: https://www.econbiz.de/10011397941
Persistent link: https://www.econbiz.de/10009725786
This paper investigates the relationship linking investment (capital stock) and structural policies. Using a panel of … 32 OECD countries from 1985 to 2013, we show that more stringent product and labour market regulations are associated … with less investment (lower capital stock). The paper also sheds light on the existence of non-linear effects of product …
Persistent link: https://www.econbiz.de/10011638226
in corporate taxation), tax policies, foreign direct investment, product and labour market and environmental regulations …Aggregate business investment is a major driver of long-term economic growth. It has been weak in many advanced … policies interact with and have an effect on business investment. This paper provides a survey of the literature on the main …
Persistent link: https://www.econbiz.de/10012543533
. More competition-friendly regulations, as measured by the OECDs' Product Market Regulation (PMR) indicator improve economic … outcomes. Lower barriers to foreign trade and investment help MFP. Lower barriers to entry and less pervasive state control of … effects depend on the level of labour market regulations. …
Persistent link: https://www.econbiz.de/10011800715