Chapter 3 Public sector pricing

Bös, Dieter

doi:10.1016/s1573-4420(85)80006-9

Cited by 26 publications

(15 citation statements)

References 58 publications

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“…This prioritizing the resource consumption is the main reason that the SOE needs to be treated as a public institution, even we consider its role and performance in international trade. Bös [5] defines SOE as public enterprises, which produce public utilities such as energy, communication, and transportation, or operate in basic goods industries such as finance, agriculture, health and education. Public enterprises have generally been regulated in their market activities to sell goods and services, according to Bös [5], in order to protect the economy from market failure, and most of the regulations imposing on prices of the public enterprises' goods and services because the market failure is for SOE to behave as monopolies in their industry.…”

Section: Role Of State Owned Enterprisesmentioning

confidence: 99%

“…Bös [5] provides a comprehensive summary of the major three public sector pricing schemes, which are well representing the SOEs' pricing strategy. The first is marginal cost pricing, which is a pricing that charges consumers only the marginal production cost of public enterprises' goods and services.…”

Section: Public Sector Pricingmentioning

confidence: 99%

“…6 For given capital depreciation rate δ and the current capital accumulation, the future period capital accumulation level is determined by the investment decision I t , so it is the solution of (4.1). Since I t is derived under the foreign investor's maximization problem, and it purchases capital stock, it is relevant to treat I t as FDI at 5 Martingale property of a stochastic process is that the future realization of the stochastic process depends only on the current realized value, not the past. This property is a necessary condition to solve discrete dynamic optimization problem under uncertainty because the dynamic system link only two time points.…”

Section: Empirical Modelmentioning

confidence: 99%

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Foreign Direct Investment in State Owned Enterprises

Joo

Shim

Sul

2017

aeb

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We analyze determinants of foreign direct investment (FDI) in non-competitive industries. We develop a micro-level FDI determination model that allows for nonzero mark-up, and estimate it using the administrative FDI recipient records and annual financial statement data for Korean state owned enterprises (SOE). Using SOEs as our research objects can rule out the endogeneities of mark-up, firm ownership structure and the associated vertical or horizontal incentive FDI. This yields a consistent estimation of the effect of mark-up and other productivity-related factors on FDI. From the empirical analysis, we find that FDI is more likely to flow into firms with large-scale physical capital and output, and a positive mark-up, and the effect is the inverse of the number of workers in the firms, which implies that FDI might not cause productivity spillover effect in non-competitive industries.

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Section: Role Of State Owned Enterprisesmentioning

confidence: 99%

Section: Public Sector Pricingmentioning

confidence: 99%

Section: Empirical Modelmentioning

confidence: 99%

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Foreign Direct Investment in State Owned Enterprises

Joo

Shim

Sul

2017

aeb

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“…However, using prices to achieve redistribution goals does not result in cost-recovery goals. It is highly likely that social water tariffs do not allow recuperating total service costs (Bös 1985 ). Actually, at the beginning of this century, urban water prices in Spain did not comply with the European Water Framework Directive 2000/60/CE (González-Gómez et al 2012 ; European Environmental Agency 2013 ).…”

Section: Urban Users: Households and Industriesmentioning

confidence: 99%

Water Pricing in Spain: Following the Footsteps of Somber Climate Change Projections

Calatrava

García-Valiñas

Garrido

et al. 2015

Water Pricing Experiences and Innovations

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As many other countries, Spain has to cope with, and be prepared to address, major water challenges: climate change, growing demand, and water pollution. Climate change projections indicate signifi cant reductions of runoff and water recharge and more unstable climate regimes. Improving water allocation has become an urgent need. Water demand management is now one of the most relevant issues in the Spanish water policy agenda. The chapter discusses the controversial topic of water pricing, focusing on Spain. The Water Framework Directive (WFD) foresees that, in order to ensure an effi cient and sustainable management of water resources, prices should be fi xed according to the principle of cost recovery. But our analysis of all policy-relevant drivers and likely scenarios suggests that reforming water-pricing policies is likely to face numerous obstacles and to raise strong opposition from most water users. And yet, pricing policies in Spain are already innovative and fully implemented for all sectors. So the way to reform is already paved, and we expect that more progress will be made in next WFD planning period (2015)(2016)(2017)(2018)(2019)(2020).

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“…In these models, the electoral cycle must be exogenous to government policy choices. Though such framework has not been formally used and empirically tested in the water literature, it is acknowledged that politicians generally try to postpone any increase in public utility prices until after the next elections [Bös, 1985[Bös, , 1994. Political models have further been extended to account for the influence of competing lobby groups.…”

Section: Introductionmentioning

confidence: 99%

Political economy of water pricing policy: Empirical evidence from public utilities in Mauritius

Madhoo

2004

Water Resources Research

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[1] This paper examines whether political economy considerations are important in the formulation of water pricing policy in Mauritius. Empirical models are developed incorporating current and lagged electoral years as dummy variables in order to test whether politicians make strategic use of water pricing policy to further their partisan electoral objectives. Political economy concerns are also included into our analysis by looking at the impact of lobby groups on the implementation of water prices. In the case of potable water prices, a disaggregated analysis according to consumer categories provides weak evidence of political manipulation. However, political manipulation is established in terms of subsidy allocations to the residential sector, which is the largest consumer category. As regards irrigation water, the results lend support to the contention that political parties indeed manipulate irrigation subsidies allocated to the Irrigation Authority. Evidence on the lobby effect emerges from our empirical analysis on potable water. More specifically, we find that smaller groups have successfully been able to use their political influence to obtain smaller water price increases.

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Chapter 3 Public sector pricing

Cited by 26 publications

References 58 publications

Foreign Direct Investment in State Owned Enterprises

Foreign Direct Investment in State Owned Enterprises

Water Pricing in Spain: Following the Footsteps of Somber Climate Change Projections

Political economy of water pricing policy: Empirical evidence from public utilities in Mauritius

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