In reviewing contracts, establishing price limits, or arbitrating conflicts, regulatory agencies and policy advisors face significant information asymmetry in determining the appropriate allowed rate of return, or discount rate. The information gap is especially important in determining the...

The potential for economic growth of nations is related to the state of their infrastructure. In this connection, it has been estimated that one percent growth in GDP requires an investment of one percent of GDP in energy, transportation, telecommunications, and water and sanitation infrastructure.

Reforms to make infrastructure services more competitive and to provide strong and independent economic regulation of natural monopolies create an environment more conducive to private sector participation in infrastructure investments, efficiency savings that can be passed on to consumers, and...