The economics rates of return for utility privatization projects in Argentina are very high, wheter or not distributional weights are considered. But there is a very high shadow price for regulatory activity, which tends to be ignored in most privatization exercises. And how serious a government...

During the 1990s, in most regions of the world, governments restructured their infrastructure sectors to facilitate some form of private participation in the operation and financing of the sector. These reforms, generally associated with other macroeconomic reforms which included the...

In this paper we develop a model to understand the interactions between optimal regulation and external credit constraints. If a big proportion of the regulated sector is owned by foreign investors, a credit-constrained country who wants to send profits abroad has to generate enough surplus in...

This paper describes the procedures established by the present regulation for high-tension network expansions, studies its optimality and points its main problems. According to the present regulatory scheme, the decision to expand the high-tension network system is on the hands of the private...

The sustainability of service is one of the fundamental aims of any regulatory system, and this tends to be reflected in the general principles within the legal framework of each public service. The necessity to cover economic costs of service then follows, in order to cover costs in such a way...

We estimate the Marginal Cost of Public Funds for Argentina using a computable general equilibrium (CGE) model, assessing the sensitivity of the results to the existence of alternative regulatory regimes (Price-Cap and Cost-Plus) for public utilities subject to regulation. Although the estimates...

The traditional Ramsey pricing and the Efficient Component Pricing Rule for access charges to a facility are modified in this paper, taking into account the constraint that profits per unit of investment must be the same between entrants and the incumbent (a general equilibrium requirement). It...