The Empirics of Regulatory Reforms Proxied by Categorical Variables: Recent Findings and Methodological Issues
Andrea Bastianin (),
Paolo Castelnovo and
Massimo Florio ()
Additional contact information
Paolo Castelnovo: University of Milan
No 2017.22, Working Papers from Fondazione Eni Enrico Mattei
Some regulatory reforms do not change just a specific signal that can be represented by a quantitative continuous variable, such as a tax rate, a price cap, or an emission threshold. The standard theory of reform in applied welfare economics (going back to contributions by e.g. Ramsey, Samuelson and Guesnerie) asks the question: What is the marginal effect on social welfare of changing a policy signal? However, reforms such as privatization, unbundling or liberalization of network industries are often described by ‘packages’ shifting a policy framework. It is increasingly frequent in the empirical evaluation of such reforms to use categorical variables, often in polytomous form, for instance describing unbundling steps (vertical integration, accounting, functional, legal, ownership separation) on a discrete numerical scale, such as those proposed by the OECD and other international bodies. We review recent econometric literature evaluating regulatory reforms using such variables (40 papers) and we discuss some methodological issues arising in this context.
Keywords: Econometrics; Policy Evaluation; Network Industries; Reforms (search for similar items in EconPapers)
JEL-codes: B41 C20 C54 D04 L98 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Working Paper: The empirics of regulatory reforms proxied by categorical variables: recent findings and methodological issues (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2017.22
Access Statistics for this paper
More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by barbara racah ().