Market Liberalization, Regulatory Uncertainty, and Firm Investment

Florian Baumann () and Tim Friehe

No 2011-08, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

Abstract: Motivated by the German postal market, this paper analyzes the effects of regulatory uncertainty about labor costs for investment into a liberalized market. We distinguish between the external investment margin (market entry) and the internal investment margin (technology) and establish that regulatory uncertainty affects these margins differently, encouraging market entry but discouraging investment at the internal margin. As a consequence, the impact of regulatory uncertainty on competition in liberalized markets is the result of these two countervailing forces.

Keywords: regulatory uncertainty; investment; market entry; minimum wage (search for similar items in EconPapers)
JEL-codes: D43 J38 L13 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2011-05-05
New Economics Papers: this item is included in nep-bec, nep-mic and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.uni-konstanz.de/FuF/wiwi/workingpaperseries/WP_Friehe-8-11.pdf (application/pdf)

Related works:
Journal Article: Market Liberalization, Regulatory Uncertainty, and Firm Investment (2012)
Journal Article: Market Liberalization, Regulatory Uncertainty, and Firm Investment (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:knz:dpteco:1108

Ordering information: This working paper can be ordered from
https://www.wiwi.uni-konstanz.de/en

Access Statistics for this paper

More papers in Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz Contact information at EDIRC.
Bibliographic data for series maintained by Office Ursprung ( this e-mail address is bad, please contact ).