Optimal Regulation

Optimal Regulation
Author: Kenneth Train
Publisher: Mit Press
Total Pages: 338
Release: 1991
Genre: Business & Economics
ISBN: 9780262200844

Optimal Regulation addresses the central issue of regulatory economics - how toregulate firms in a way that induces them to produce and price "optimally." It synthesizes the majorfindings of an extensive theoretical literature on what constitutes optimality in various situationsand which regulatory mechanisms can be used to achieve it. It is the first text to provide aunified, modern, and nontechnical treatment of the field.The book includes models for regulatingoptimal output, tariffs, and surplus subsidy schemes, and presents all of the material graphically,with clear explanations of often highly technical topics.Kenneth E. Train is Associate AdjunctProfessor in the Department of Economics and Graduate School of Public Policy at the University ofCalifornia, Berkeley. He is also Principal of the firm Cambridge Systematics.Topics include: Thecost structure of natural monopoly (economies of scale and scope). Characterization of firstandsecond-best optimality. Surplus subsidy schemes for attaining first-best optimality. Ramsey pricesand the Vogelsang-Finsinger mechanism for attaining them. Time-ofuse (TOU) prices and Riordan'smechanisms for attaining the optimal TOU prices' Multipart and self-selecting tariffs, and Sibley'smethod for using self-selecting tariffs to achieve optimality. The Averch-Johnson model of howrate-of-return regulation induces inefficiencies. Analysis of regulation based on the firm's returnon Output, costs, or sales. Price-cap regulation. Regulatory treatment of uncertainty and its impacton the firm's behavior. Methods of attaining optimality without direct regulation (contestability,auctioning the monopoly franchise.)

Optimal Regulation and the Law of International Trade

Optimal Regulation and the Law of International Trade
Author: Boris Rigod
Publisher: Cambridge University Press
Total Pages: 321
Release: 2015-11-13
Genre: Business & Economics
ISBN: 1107116120

This book applies a law and economics methodology to enquire into the interface between regulation and international trade law.

The Prudential Regulation of Banks

The Prudential Regulation of Banks
Author: Mathias Dewatripont
Publisher:
Total Pages: 0
Release: 1994-12
Genre: Banking law
ISBN: 9780262513869

The Prudential Regulation of Banks applies modern economic theory to prudential regulation of financial intermediaries. Dewatripont and Tirole tackle the key problem of providing the right incentives to management in banks by looking at how external intervention by claimholders (holders of equity or debt) affects managerial incentives and how that intervention might ideally be implemented. Their primary focus is the regulation of commercial banks and S&Ls, but many of the implications of their theory are also valid for other intermediaries such as insurance companies, pension funds, and securities funds. Observing that the main concern of the regulation of intermediaries is solvency (the relation between equity, debt, and asset riskiness), the authors provide institutional background and develop a case for regulation as performing the monitoring functions (screening, auditing, convenant writing, and intervention) that dispersed depositors are unable or unwilling to perform. They also illustrate the dangers of regulatory failure in a summary of the S&L crisis of the 1980s. Following a survey of banking theory, Dewatripont and Tirole develop their model of the capital structure of banks and show how optimal regulation can be achieved using capital adequacy requirements and external intervention when banks are violated. They explain how regulation can be designed to minimize risks of accounting manipulations and to insulate bank managers from macroeconomic shocks, which are beyond their control. Finally, they provide a detailed evaluation of the existing regulation and of potential alternatives, such as rating agencies, private deposit insurance, and large private depositors. They show that these reforms are, at best, a complement, rather than a substitute, to the existing regulation which combines capital ratios with external intervention in case of insolvency. The Prudential Regulation of Banks is part of the Walras Pareto Lectures, from the Universiy of Lausanne.

Allostasis, Homeostasis, and the Costs of Physiological Adaptation

Allostasis, Homeostasis, and the Costs of Physiological Adaptation
Author: Jay Schulkin
Publisher: Cambridge University Press
Total Pages: 388
Release: 2004-10-25
Genre: Medical
ISBN: 9780521811415

The concept of homeostasis, the maintenance of the internal physiological environment of an organism within tolerable limits, is well established in medicine and physiology. In contrast, allostasis is a relatively new idea of 'viability through change'. With allostatic regulation by cephalic involvement, the body adapts to potentially diverse and dangerous situations through the activation of neural, hormonal, or immunological mechanisms. Allostasis explains how regulatory events maintain organismic viability, or not, in diverse contexts with varying set points of bodily needs and competing motivations. This 2005 book introduces the concept of allostasis and sets it alongside traditional views of homeostasis. It addresses basic regulatory systems and examines the behavior of bodily regulation under duress. The basic concepts of physiological homeostasis are integrated with disorders like depression, stress, anxiety and addiction. It will therefore appeal to graduate students, medical students and researchers working in physiology, epidemiology, endocrinology, neuroendocrinology, neuroscience, and psychology.

The Economics, Regulation, and Systemic Risk of Insurance Markets

The Economics, Regulation, and Systemic Risk of Insurance Markets
Author: Felix Hufeld
Publisher: Oxford University Press
Total Pages: 247
Release: 2017
Genre: Business & Economics
ISBN: 0198788819

The book brings together academics, regulators, and industry experts to provide a multifaceted array of research and perspectives on insurance, its role and functioning, and the potential systemic risk it could create.

Principles of Financial Regulation

Principles of Financial Regulation
Author: John Armour
Publisher: Oxford University Press
Total Pages: 698
Release: 2016
Genre: Business & Economics
ISBN: 0198786476

Examining the subject from a holistic and multidisciplinary perspective, Principles of Financial Regulation considers the underlying policies and the objectives of financial regulation.

Health Economics from Theory to Practice

Health Economics from Theory to Practice
Author: Simon Eckermann
Publisher: Springer
Total Pages: 339
Release: 2017-03-20
Genre: Business & Economics
ISBN: 3319506137

This book provides a robust set of health economic principles and methods to inform societal decisions in relation to research, reimbursement and regulation (pricing and monitoring of performance in practice). We provide a theoretical and practical framework that navigates to avoid common biases and suboptimal outcomes observed in recent and current practice of health economic analysis, as opposed to claiming to be comprehensive in covering all methods. Our aim is to facilitate efficient health system decision making processes in research, reimbursement and regulation, which promote constrained optimisation of community outcomes from a societal perspective given resource constraints, available technology and processes of technology assessment. Importantly, this includes identifying an efficient process to maximize the potential that arises from research and pricing in relation to existing technology under uncertainty, given current evidence and associated opportunity costs of investment. Principles and methods are identified and illustrated across health promotion, prevention and palliative care settings as well as treatment settings. Health policy implications are also highlighted.

Currency Wars

Currency Wars
Author: Jeffrey Yi-Lin Forrest
Publisher: Springer
Total Pages: 610
Release: 2017-11-25
Genre: Business & Economics
ISBN: 3319677659

This book uses systemic thinking and applies it to the study of financial crises. It systematically presents how the systemic yoyo model, its thinking logic, and its methodology can be employed as a common playground and intuition to the study of money, international finance, and economic reforms. This book establishes theoretical backings for why some of the most employed interferences of the market and empirical experiences actually work. It has become urgent for economists and policy makers to understand how international speculative capital affects the economic security of various nations. By looking at the issues of monetary movement around the world, this book shows that there are clearly visible patterns behind the flows of capital, and that there are a uniform language and logic of reasoning that can be powerfully employed in the studies of international finance As shown in this book, many of the conclusions drawn on the basis of these visible patterns, language, and logic of thinking can be practically applied to produce tangible economic benefits. Currency Wars: Offense and Defense through Systemic Thinking is divided into six parts. The first part addresses issues related to systemic modeling of economic entities and processes and explains how a few policy changes can adjust the performance of the extremely complex economy. Part II of the book investigates the problem of how instabilities lead to opportunities for currency attacks, the positive and negative effects of foreign capital, and how international capital flows can cause disturbances of various degrees on a nation’s economic security. Part III examines how a currency war is initiated, why currency conflicts and wars are inevitable, and a specific way of how currency attacks can take place. In Part IV, the book shows how one nation can potential defend itself by manipulating exchange rate of its currency, how the nation under siege can protect itself against financial attacks by using strategies based on the technique of feedback, and develops a more general approach of self-defense. Part V focuses on issues related to the cleanup of the disastrous aftermath of currency attacks through using policies and reforms. Finally the book concludes in Part VI as it analyzes specific real-life cases and addresses the ultimate problem of whether or not currency wars can be avoided all together.