Innovative regulations,incomplete contracts and ownership structure in the water utilities

Using an incomplete contract framework, we analyse new forms of regulation and private participation in public services. This paper explains contractual efficiency in the absence of financially guaranteed investments in public private partnerships. The example of a number of African countries underlines how a series of national, normative law reforms can give rise to innovations in approaches to regulation. This new hybrid form of regulation, inspired by a French regulation approach combining commission regulation and franchise bidding, could be more effective than previous approaches to regulation, in the sense of being more stable and more closely aligned with stakeholder expectations. This approach to regulation would appear to be more efficient economically, while integrating the objectives of solidarity tariffs and social water access connections. Based on these analyses, our results show (1) the impact on the robustness of new lease contracts on financing constraints, and (2) the advantages of Asset Owner Companies that reconcile explicit commitments and special purposes. We demonstrate that this achieves optimum efficiency by encouraging parties to determine jointly the optimal level of costs and investment. In addition, the mechanism fosters discussion about the possibility of institutionalizing Asset Owner Companies by predetermining the distribution of risk in lease contracts.     

Sex Discrimination,Personal Denial,and Collateral Damage

Many social scientists, especially those interested in social justice, have bemoaned the election of Donald Trump as president of the USA and have decried similar right-wing victories around the globe. We wish our research would have more of an impact. I argue that if we want our conclusions to have more application outside academia, we must first put our own house in order. As illustrated by a personal narrative, we are guilty of the sexism that we decry in others, although we can see that with clarity only in hindsight. Connected to our sexism are some epistemological shortcomings: our false insistence on the primacy of basic research and our false claim to conduct “value-free” research.     

Governance in der politischen Ökonomie — zum Stand der Debatte

Ohne Zusammenfassung     

Föderalismusreform und Umweltrecht*

Der Beitrag befasst sich mit der Entwicklung, der Lage und den möglichen Veränderungen des deutschen Föderalismus im Hinblick auf das Umweltrecht. Die bisher in der Kommission zur Modernisierung der bundesstaatlichen Ordnung geäußerten Vorschläge können nur teilweise überzeugen. Zu empfehlen ist insbesondere ein einheitlicher Kompetenztitel des Bundes für den Umweltschutz im Bereich der konkurrierenden Gesetzgebung. Allgemein sollten die Rahmengesetzgebung und die Grundsatzgesetzgebung ebenso entfallen wie die Möglichkeit des Bundes, gemäß Art. 84 Abs. 1 GG künftig weiter die Einrichtung und das Verwaltungsverfahren der Landesbehörden zu regeln. Im Übrigen erscheint die Beteiligung der Länder an der europäischen Gesetzgebung reformbedürftig. * Frau Christina Hakel sowie Herrn Volker Ochsenfahrt, Berlin, danke ich für die wertvolle Mitarbeit.     

Do Ukrainian Firms Benefit from FDI?

All countries are eager to attract as much foreign direct investments (FDI) as possible. At the same time FDI may have not only positive, but also negative economic effects for receiving countries. Positive effects are associated with technology transfer, efficient allocation of resources, and training of domestic workers. However, the entry of foreign firms could, e.g., lead to a decrease of labor productivity at domestic firms, which is a negative effect. The main purpose of this paper is to estimate direct and indirect effects of FDI. First, we test for direct influence of foreign direct investments on firms’ performance, where the latter is estimated alternatively as labor productivity and as exports. FDI notably increases both labor productivity and export volumes. Second, we look for spillover or indirect effects. There is statistical evidence that the levels of FDI in certain regional industries are associated with higher performance indicators of firms’ not receiving FDI in those same regional industries.