The economics of regulation in competitive market structures : a general equilibrium analysis.
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| Other Authors: | , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1982.
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| Subjects: | |
| Online Access: | ProQuest, Abstract Link to OAKTrust Copy Link to ProQuest Copy |
| Abstract: | This dissertation examines four aspects of regulation; price regulation, product quality regulation, welfare implications of price regulation, and input regulation. These topics are all analyzed using a general equilbrium framework. The first three topics are developed within a two-sector, two factor model in a closed economy. However, what differentiates this model from the standard trade models is that one of the sectors, the regulated sector, is modeled as producing two goods: the basic good produced and quality per unit of the basic good produced. Also, the model is closed with a demand specification that takes quality into account. Thus this model will combine the characteristics of industrial organization models of regulation with international trade models. The fourth topic is analyzed using a two-good, three-factor model. Thus changes in regulation are modeled as changes in the use of one of the factors of production. Also, the effects of this type of factor regulation are examined when the economy engages in trade. The basic conclusions reached in this dissertation are: (1) In the short run an increase in the regulated price of a product will increase the rewards to both factors used in the regulated industry and the mobile factor used in the unregulated industry. The reward to the immobile factor in the unregulated industry will decrease. (2) During the transition period to the long run, capital (labor) gains when the regulated sector is capital (labor)-intensive and loses when the regulated sector is labor (capital)-intensive. The same result also holds in the long run. (3) In the short run, the effects of an increase in the regulated level of quality are the same as for an increase in the regulated price with regard to its effects on factor rewards. (4) During the adjustment process, with quality regulation, labor loses if the regulated industry is capital-intensive, and capital in the unregulated industry gains. Capital in the regulated industry may gain or lose. (5) In the long run, given an increase in the regulated level of quality, capital (labor) gains when the regulated industry is capital (labor)-intensive. (6) An increase in the regulated price of a product can improve the welfare of all individuals in an economy. Also, given identical individuals, the optimal price can be characterized. . . . (Author's abstract exceeds stipulated maximum length. Discontinued here with permission of author.) UMI |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Economics." |
| Physical Description: | x, 143 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references (leaves 125-127). |