A growing number of roads are currently financed by the private sector via Build-Operate-and-Transfer (BOT) schemes. When the franchised road has no close substitute, the government must regulate tolls. Yet when there are many ways of getting from one point to another, regulation may be avoided...

Este trabajo estima los peajes que le correspondería pagar a cada grupo de empresas de generación con cada una de las reglas de asignación que han sido propuestas en las sucesivas versiones de la ley corta, y los compara con aquellos que hubieran pagado con los contratos vigentes hasta marzo...

Long-term relationships between business firms and investment banks are pervasive in developed security markets and there is evidence that better monitoring and information result from these relationships. Therefore, security markets should allocate resources better when an investment banking...

Infrastructure concessions are frequently renegotiated after investments are sunk, resulting in better contractual terms for the franchise holders. This paper offers a political economy explanation for renegotiations that occur with no apparent holdup. We argue that they are used by political...

Studies that estimate deficit probabilities in hydrothermal systems have generally ignored the response of demand to changing prices, in the belief that such response is largely irrelevant. We show that ignoring the response of demand to prices can lead to substantial over or under estimation of...

This paper analyses the foundations of “efficient-firm” regulation (implemented in Chile for almost two decades), and the formulas that are used to set the prices of water/sanitation companies, electric power distributors and the dominant phone companies. We show that efficient-firm...

This paper describes and evaluates the Chilean infrastructure concessions program, which is one of the main economic innovations carried out by the center-left coalition of political parties that has governed Chile since the return to democracy in 1990. The main principles underlying the...

In recent years several countries have started massive highway franchising programs auctioned to private firms. In these auctions, the regulator typically sets the franchise term and firms bid on tolls or, alternatively, the regulator sets tolls and the winner is the firm that asks for the...

Most developing-country governments lack resources to undertake urgent highway construction programs. This has led to the suggestion that private firms should be given franchises to build, finance, operate and transfer (BOT) highways in exchange for toll revenues. We build a conceptual framework...

Este trabajo estudia formalmente si la ley eléctrica contenía precios suficientes para administrar sin cortes y eficientemente caídas drásticas de la cantidad ofrecida de energía y daba los incentivos correctos para invertir en capacidad de reserva. También analizamos en detalle las...