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Market Liberalization, Regulatory Uncertainty, and Firm Investment

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2012

Autor:innen

Baumann, Florian

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Published

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German Economic Review. De Gruyter. 2012, 13(3), pp. 352-361. ISSN 1465-6485. eISSN 1468-0475. Available under: doi: 10.1111/j.1468-0475.2012.00564.x

Zusammenfassung

This paper analyzes the effects of regulatory uncertainty regarding labor costs on investment in 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 technological investment. As a consequence, the impact of regulatory uncertainty on competition in liberalized markets is a combination of these two countervailing forces.

Zusammenfassung in einer weiteren Sprache

Fachgebiet (DDC)
330 Wirtschaft

Schlagwörter

Regulatory uncertainty; investment; market entry; minimum wage

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ISO 690BAUMANN, Florian, Tim FRIEHE, 2012. Market Liberalization, Regulatory Uncertainty, and Firm Investment. In: German Economic Review. De Gruyter. 2012, 13(3), pp. 352-361. ISSN 1465-6485. eISSN 1468-0475. Available under: doi: 10.1111/j.1468-0475.2012.00564.x
BibTex
@article{Baumann2012Marke-29710.2,
  year={2012},
  doi={10.1111/j.1468-0475.2012.00564.x},
  title={Market Liberalization, Regulatory Uncertainty, and Firm Investment},
  number={3},
  volume={13},
  issn={1465-6485},
  journal={German Economic Review},
  pages={352--361},
  author={Baumann, Florian and Friehe, Tim}
}
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