{"title":"Cartel Enforcement and Deterrence Over the Life of A Competition Authority","authors":"K. Armoogum, S. Davies, Franco Mariuzzo","doi":"10.2139/ssrn.2993149","DOIUrl":"https://doi.org/10.2139/ssrn.2993149","url":null,"abstract":"This paper searches for evidence that, as a Competition Agency (CA) builds up experience in cartel enforcement, this feeds back into the business community to deter future cartel formation. We present two simple models, focussing respectively on composition and frequency deterrence, which describe how the feedback would work. The ideal outcome is that, over the long-run, the number of cartels detected by a successful CA will follow an inverted U-shaped time path: its propensity to detect increase, but the number of cartels out there to be detected decrease. Empirically, we try to simulate the long-term dimension by using an international panel of CAs. Although comparable data are only available for a relatively short time period (2006-2014) we hope that longer-run effects are captured by including in the panel CAs at very different stages in their life cycles. We find evidence of the predicted inverse U shape, and interpret this as consistent with an increasingly strong feedback from enforcement to deterrence as the CA evolves over the years.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130653614","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Running with a Mask? The Effect of Air Pollution on Marathon Runners' Performance","authors":"Mengmeng Guo, Shihe Fu","doi":"10.2139/ssrn.2978302","DOIUrl":"https://doi.org/10.2139/ssrn.2978302","url":null,"abstract":"Using a sample of over 0.3 million marathon runners in 37 cities and 55 races in China in 2014 and 2015, we estimate the air pollution elasticity of finish time to be 0.041. Our causal identification comes from the exogeneity of air pollution on the race day because runners are required to register a race a few months in advance and we control for city fixed effects, seasonal effects, and weather condition on the race day. Including individual fixed effects also provides consistent evidence. Our study contributes to the emerging literature on the effect of air pollution on short-run productivity, particularly on the performance of athletes engaging outdoor sports and other workers whose jobs require intensive physical activities.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129818331","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Concluding Comments to the Debate","authors":"R. Lipsey","doi":"10.1111/1468-0106.12223","DOIUrl":"https://doi.org/10.1111/1468-0106.12223","url":null,"abstract":"In this final piece to the symposium for a special issue of Pacific Economic Review on the theories and applications of second‐best and third‐best theories, Richard Lipsey and Yew‐Kwang Ng provide their final comments to the debate. Several issues of agreement and disagreement are discussed. Most importantly, while both agree on the formal correctness of both the second‐best and third‐best theories, Lipsey believes the main proposition of third‐best theory (following the first‐best rules under Informational Poverty) is applicable only to a situation (status quo) where the first‐best rule (such as taxing a pollution at the marginal damage of $N) is already being followed; Ng regards it as applicable whether or not the first‐best rule is currently being followed. This also partly explains their difference on the practical policy relevance and the importance of that theory.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"65 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125092631","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Structural Change, Fundamentals, and Growth: A Framework and Case Studies","authors":"M. McMillan, D. Rodrik, C. Sepúlveda","doi":"10.1596/1813-9450-8041","DOIUrl":"https://doi.org/10.1596/1813-9450-8041","url":null,"abstract":"The volume consists of an overview and seven country studies, written by leading scholars from both developed and developing countries. The overview lays out a unifying framework for thinking about economic growth as a combination of two challenges. The “structural change challenge” is focused on moving resources from traditional low-productivity activities into modern, more productive industries. The “fundamentals challenge” faced by policy makers in the developing world is about how best to develop broad capabilities such as human capital and infrastructure. While the two are inextricably linked, they are conceptually different, and making this distinction is one of the contributions of this book. The overview also includes a description of the common methodology used in the country studies, a discussion of data and measurement issues, and a synthesis of the findings.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115761627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Implications of Minimum Wage Increases on Labor Market Dynamics Lessons for Emerging Economies","authors":"Ximena V. Del Carpio, Laura Pabon","doi":"10.1596/1813-9450-8030","DOIUrl":"https://doi.org/10.1596/1813-9450-8030","url":null,"abstract":"This paper offers evidence on the relationship between the minimum wage and unemployment and informal employment, and identifies some of the lessons learned on the potential effects of increasing the minimum wage. Most of the evidence suggests that sizable increases in the minimum wage are likely to exacerbate unemployment and the prevalence of informal employment, which could have negative consequences for labor productivity and businesses as a result of reduced investment in employee training and loss of productive workers. This outcome occurs when businesses adopt the main channels available for absorbing increased labor costs. The majority of the empirical evidence suggests that the effects of minimum wage increases on unemployment and the demand for labor are unclear. The outcome depends in large part on the specific characteristics of the labor markets and the degree of compliance with the minimum wage law. Most of those affected by minimum wage increases are less qualified workers. In Latin American and Asia, differences in the effects of minimum wage increases depend largely on the size and type of firms. In countries with high levels of informal employment, minimum wage increases can increase informal employment, since the formal workers who lose their jobs are absorbed by the informal sector of the economy. In general, businesses have five mechanisms for absorbing the added labor costs. Given the characteristics of the labor market in emerging economies, it is likely that businesses faced with increased labor costs will resort to less than optimal channels, which will tend to affect their productivity and the labor market in general.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122219278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pollution for Promotion","authors":"Ruixue Jia","doi":"10.2139/ssrn.3029046","DOIUrl":"https://doi.org/10.2139/ssrn.3029046","url":null,"abstract":"This paper demonstrates that China’s high environmental pollution levels can partly be explained by the incentives embedded in the country’s political institutions. Guided by a simple career concerns model with the choice of dirty and clean technologies, I examine empirically how promotion incentives of provincial governors aect pollution. To nd exogenous variation in promotion incentives, I explore within-governor variation in connections with key ocials due to reshuing at the center and document the fact that connections are complementary to economic performance for governors’ promotion. The data conrms the model prediction that connections increase pollution. Auxiliary predictions of the model are also conrmed","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129847438","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Comparative Analysis of Life Insurance Sector in India with BRIC Nations","authors":"Leena B. Dam","doi":"10.15410/aijm/2017/v6i1/120835","DOIUrl":"https://doi.org/10.15410/aijm/2017/v6i1/120835","url":null,"abstract":"Insurance serves the dual role of savings and investment. Life insurance, primarily, is a tool to mitigate the financial risk arising because of the death of the insured. The capital pool arising from collection of life insurance premium is deployed in numerous nation-building activities which enhance economic growth. The BRIC nations with a combined population of around 3 billion are a prosperous market for life insurance business. All BRIC nations having already liberalized their insurance industry, there is a level playing field for both public and private industries. In the world market, the scope for expansion has reduced in the more matured economies. Hence, global insurance companies are concentrating attention in the emerging markets. In all these markets, life insurance sector represents a vibrant market, which is strongly expanding and establishing itself as a significant contributor of economic growth. India does not find a place in the top ten countries with her life insurance business.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"102 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131392033","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Addressing Competition Challenges in Financial Markets","authors":"Chris Pike, Rosana Aragon Plaza","doi":"10.2139/ssrn.3487559","DOIUrl":"https://doi.org/10.2139/ssrn.3487559","url":null,"abstract":"Advocating for competition in financial markets can be more challenging than in other markets since other policy goals can take precedence over efficiency considerations. Competition authorities therefore have to cooperate effectively with financial regulators and powerful central banks if they are to use market studies or their other tools to advocate for policy solutions that take into account efficiency concerns in addition to other government objectives such as market stability and consumer protection. Financial markets can also be different (and difficult) because the framework for merger review in financial markets often differs from other markets, meaning that the competition authorities’ role can be limited or less decisive. Furthermore, while competition authorities typically retain their role in enforcement against anticompetitive conduct in financial markets, they nevertheless need to cooperate effectively with financial regulators and central banks in order to take advantages of the opportunities that exist in these investigations. This issues paper looks at the ways in which agencies in Latin America and the Caribbean can ensure they cooperate effectively.<br><br>Effective cooperation is particularly important when conducting market studies, both because of the expertise that the financial regulator and central bank can bring to the study, and because the way in which the market is regulated may be a relevant feature of the market that is found to have an impact on competition. In addition, effective cooperation that increases the quality of the market study can help to build the credibility of the study, which in turn increases the likelihood of recommendations being acted on. We therefore look at the experiences that competition authorities in Latin America and the Caribbean have had in conducting market studies in the financial sector.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125627573","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Improving the Institutional Environment for SME Success in Nigeria","authors":"Adewole Musiliu Adeolu","doi":"10.2139/ssrn.2915002","DOIUrl":"https://doi.org/10.2139/ssrn.2915002","url":null,"abstract":"The principal purpose of this essay is to examine the critical barriers militating against the growth of SMEs in Nigeria. Using purely descriptive approach, we examined the new perception of SMEs and their place within the neoclassical literature. Within the Nigerian context, we identified policy inconsistency, unstable macroeconomic, poor or non-existent infrastructure, bureaucratic bottlenecks, lack of access to short and long term funds, inadequate business support services and reliable databank for planning as serious problems confronting SMEs. Government policies must therefore address these serious problems, particularly creating a legal environment that encourages private sector participation in the provision of infrastructure required for the SMEs to strive.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123920072","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Hackerspaces as Entrepreneurial Anarchy","authors":"Darcy W. E. Allen","doi":"10.2139/ssrn.2749016","DOIUrl":"https://doi.org/10.2139/ssrn.2749016","url":null,"abstract":"Claims that hackerspace anarchy may be a potentially comparatively efficient form of governance for proto-entrepreneurial information about market opportunities in the early stages of new technologies. An analytic narrative over secondary data of hackerspaces reveals private governance mechanisms including graduated social ostracism, costly signalling to facilitate ordering, collective action processes and nested hierarchies of rules. Agents in hackerspaces eschew, at least temporarily, organising in firms, markets and states, in favour of their own privately developed rule systems. There are two main comparative institutional drivers for why anarchy may be a more efficient solution for the problem of entrepreneurial coordination of distributed information. First, the institutions of firms and states may be comparatively ineffective at dealing with highly uncertain and distributed Hayekian information. And second, collective action processes may through time increase the comparative efficacy of private institutional solutions. The implication of this are that policy attempts to integrate these autonomous independent innovation organisations into the entangled system may either: impurify the spontaneous order processes underpinning hackerspaces and thereby distort the emergent ordering of entrepreneurial information into market opportunities; and decrease the institutional ‘robustness’ of the innovation system writ large.","PeriodicalId":424970,"journal":{"name":"Emerging Markets Economics: Industrial Policy & Regulation eJournal","volume":"47 41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133261278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}