We present a model featuring irreversible investment, economies of scale, uncertain future demand and capital prices, and a regulator who sets the firm's output price according to the cost structure of a hypothetical replacement firm. We show that a replacement firm has a fundamental cost...

We show that regulators' price-setting, rate base, and allowed rate of return decisions are inextricably linked. Once regulators switch from traditional rate of return regulation, the irreversibility of much infrastructure investment significantly alters the results of the usual approach to...

The authors use data on 460 loans made to individual firms by the Bank of Nova Scotia, together with information on the location, capital size, and activity type of each of these firms, to test for the existence of discriminatory lending policies. Their analysis indicates that there were marked...

Lew Evans and Neil Quigley presented, Regulation of Lines Networks at an ISCR half day seminar in March 2003.

Our analysis is concerned solely with the levy of rates on the value of the distribution networks of utilities (which may be on poles above ground or underground) and is not applicable to the land and buildings owned by utilities and rated under the standard residential and commercial rating...

Co-operatives provide a vehicle for the vertical integration of production andprocessing in agriculture. The producers provide capital for and control theprocessing entity so that their interests are aligned. Returns to producers bundle together the commodity price and the return from the...

Money and Medicines (WFB) analyses government provision of prescription pharmaceuticals in New Zealand focussing on the performance of the Pharmaceutical Management Agency Ltd. (Pharmac). Pharmac is a wholly owned subsidiary of the Transitional Health Authority (THA) and has the responsibility...

In this study we analyse the objectives underlying the Reserve Bank's policy ofmandatory local incorporation and provide an assessment of the effectiveness of the policy in meeting these objectives. We review both the legal and regulatory framework within which branches of foreign banks now...

In the last decade politicians from across the political spectrum have talked about 'transforming' New Zealand from an economy focused on land-based industries to an economy focused on investment in technology-based and high-value-added industries by promoting investment in and retaining New...