Regulatory Instruments and Their Effects on Investment Behavior
Regulatory instruments have long been understood to have a powerful effect on investment, and part of the motivation for introducing higher-powered regulatory regimes and contracts was to reduce incentives for inefficiency and over-investment (gold...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/04/4129257/regulatory-instruments-effects-investment-behavior http://hdl.handle.net/10986/14108 |
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okr-10986-141082021-04-23T14:03:20Z Regulatory Instruments and Their Effects on Investment Behavior Burns, Phil Riechmann, Christoph ASSET MANAGEMENT BENCHMARK BENCHMARKING CONSUMERS COST EFFICIENCY COST FUNCTIONS COST OF CAPITAL COST SAVINGS DEPRECIATION DIRECT VALUE DISCOUNT RATE ECONOMIC ACTIVITY EXPENDITURE INCENTIVE EFFECTS INCENTIVE REGIMES INCOME INEFFICIENCY INPUT USE LABOR PRODUCTIVITY LEADING INDICATORS LOW PERFORMANCE MARGINAL COST MARGINAL COSTS PAYOUT PRESENT VALUE PRICE CONTROLS PRICE LEVELS PRODUCERS PROFITABILITY QUALITY OF SERVICE QUALITY STANDARDS REGULATORY REGIMES REPORTING SAVINGS TOTAL COSTS TRANSPARENCY VALUATION WILLINGNESS TO PAY REGULATORY INSTRUMENTS REGULATORY REGIMES REGULATORY FRAMEWORK INVESTMENT BEHAVIOR CONTRACTS CAPITAL EXPENDITURES Regulatory instruments have long been understood to have a powerful effect on investment, and part of the motivation for introducing higher-powered regulatory regimes and contracts was to reduce incentives for inefficiency and over-investment (gold plating) inherent in cost-plus regulatory schemes. In practice, the mix of incentives and the institutional framework that make up a higher-powered regulatory regime can also lead to unintended distortions on investment behavior. The authors examine the key drivers of investment behavior and provide some examples of how these drivers have affected investment in practice. They conclude with a set of key areas and interrelationships that are at the core of a regulatory settlement, and therefore need to be designed appropriately to drive efficient investment behavior. 2013-06-21T15:20:44Z 2013-06-21T15:20:44Z 2004-04 http://documents.worldbank.org/curated/en/2004/04/4129257/regulatory-instruments-effects-investment-behavior http://hdl.handle.net/10986/14108 English en_US Policy Research Working Paper;No.3292 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ASSET MANAGEMENT BENCHMARK BENCHMARKING CONSUMERS COST EFFICIENCY COST FUNCTIONS COST OF CAPITAL COST SAVINGS DEPRECIATION DIRECT VALUE DISCOUNT RATE ECONOMIC ACTIVITY EXPENDITURE INCENTIVE EFFECTS INCENTIVE REGIMES INCOME INEFFICIENCY INPUT USE LABOR PRODUCTIVITY LEADING INDICATORS LOW PERFORMANCE MARGINAL COST MARGINAL COSTS PAYOUT PRESENT VALUE PRICE CONTROLS PRICE LEVELS PRODUCERS PROFITABILITY QUALITY OF SERVICE QUALITY STANDARDS REGULATORY REGIMES REPORTING SAVINGS TOTAL COSTS TRANSPARENCY VALUATION WILLINGNESS TO PAY REGULATORY INSTRUMENTS REGULATORY REGIMES REGULATORY FRAMEWORK INVESTMENT BEHAVIOR CONTRACTS CAPITAL EXPENDITURES |
| spellingShingle |
ASSET MANAGEMENT BENCHMARK BENCHMARKING CONSUMERS COST EFFICIENCY COST FUNCTIONS COST OF CAPITAL COST SAVINGS DEPRECIATION DIRECT VALUE DISCOUNT RATE ECONOMIC ACTIVITY EXPENDITURE INCENTIVE EFFECTS INCENTIVE REGIMES INCOME INEFFICIENCY INPUT USE LABOR PRODUCTIVITY LEADING INDICATORS LOW PERFORMANCE MARGINAL COST MARGINAL COSTS PAYOUT PRESENT VALUE PRICE CONTROLS PRICE LEVELS PRODUCERS PROFITABILITY QUALITY OF SERVICE QUALITY STANDARDS REGULATORY REGIMES REPORTING SAVINGS TOTAL COSTS TRANSPARENCY VALUATION WILLINGNESS TO PAY REGULATORY INSTRUMENTS REGULATORY REGIMES REGULATORY FRAMEWORK INVESTMENT BEHAVIOR CONTRACTS CAPITAL EXPENDITURES Burns, Phil Riechmann, Christoph Regulatory Instruments and Their Effects on Investment Behavior |
| relation |
Policy Research Working Paper;No.3292 |
| description |
Regulatory instruments have long been
understood to have a powerful effect on investment, and part
of the motivation for introducing higher-powered regulatory
regimes and contracts was to reduce incentives for
inefficiency and over-investment (gold plating) inherent in
cost-plus regulatory schemes. In practice, the mix of
incentives and the institutional framework that make up a
higher-powered regulatory regime can also lead to unintended
distortions on investment behavior. The authors examine the
key drivers of investment behavior and provide some examples
of how these drivers have affected investment in practice.
They conclude with a set of key areas and interrelationships
that are at the core of a regulatory settlement, and
therefore need to be designed appropriately to drive
efficient investment behavior. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Burns, Phil Riechmann, Christoph |
| author_facet |
Burns, Phil Riechmann, Christoph |
| author_sort |
Burns, Phil |
| title |
Regulatory Instruments and Their Effects on Investment Behavior |
| title_short |
Regulatory Instruments and Their Effects on Investment Behavior |
| title_full |
Regulatory Instruments and Their Effects on Investment Behavior |
| title_fullStr |
Regulatory Instruments and Their Effects on Investment Behavior |
| title_full_unstemmed |
Regulatory Instruments and Their Effects on Investment Behavior |
| title_sort |
regulatory instruments and their effects on investment behavior |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/04/4129257/regulatory-instruments-effects-investment-behavior http://hdl.handle.net/10986/14108 |
| _version_ |
1764430208944832512 |