Document de travail

Regulatory Schemes and Political Capture in a Local Public Sector

Philippe Gagnepain et Marc Ivaldi

Résumé

We consider a framework of contractual interactions between urban transport authorities and transport operators. We estimate simultaneously the choice of contract by the authorities and the effect of regulation on the cost reducing activity of the operators. We test whether regulatory schemes currently implemented in the industry are the observable items of a more general menu of second best contracts. We suggest that the generation process of the data we have in hand is better explained by the political aspects of regulation. Moreover, the cost reducing effort of the operators is greater under fixed-price regimes, compared to the cost-plus case.

Référence

Philippe Gagnepain et Marc Ivaldi, « Regulatory Schemes and Political Capture in a Local Public Sector », TSE Working Paper, n° 10-158, mai 2010.

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Publié dans

TSE Working Paper, n° 10-158, mai 2010