EC31610 - PRIVATISATION AND REGULATORY ECONOMICS

Module Identifier

EC31610

Module Title

PRIVATISATION AND REGULATORY ECONOMICS

Academic Year

2004/2005

Co-ordinator

Dr Mark J Rhodes

Semester

Semester 2

Pre-Requisite

EC30220 or (EC31410 and EC36420)

Course delivery

Lecture

10 Hours

Seminars / Tutorials

4 Hours

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	1.5 Hours	80%
Semester Assessment	Essay	20%
Supplementary Exam	1.5 Hours	100%

Learning outcomes

On completing this module students will:

Be able to describe the size and importance of network utilities to the UK economy
Be able to discuss the economic case for privatisation
Justify the continuing case for regulation.
Have the skills to analyse and critically interpret the merits of different regulatory models.
Assess how different models have been applied in practice.
Be able to critically examine the practical effects of a regulatory approach.
Posses detailed knowledge of the post privatisation experiences of at least two UK sectors.

Aims

This third year semester 2 module discusses the privatisation, and approaches to regulation, of public utility companies. We start from an explanation of the size, cost and market structure for these sectors. The case for privatisation and the welfare arguments for regulation are then examined. Different approaches to regulation are discussed and their application and experience in practice are examined. Topics will be presented in formal lectures and discussed in smaller classes. Independent work through reading, discussion and the completion of exercises is an integral part of the learning process for the module.

Brief description

This module examines why public utility companies were privatised and the reasons for regulating the now private companies. The most effective forms of regulation are discussed and the prctical experience of companies is examined.

Content

Size, Cost and Natural Monopoly
The Case for Privatisation
Network Access and Double Marginalisation
Regulatory Models
Privatisation and Regulation in Practice
Measuring Performance

Reading Lists

Articles
I Stelzer (Nov, 2000) A review of privatisation and regulation experience in Britain IEA Lecture, Source http://www.iea.org.uk/wpapers/regstelzer2000
D Helm (2001) Making Britain more competitive: A critique of regulation and competition policy Scottish Journal of Political Economy, Vol.48, No.5, pp.471-487.
D Newbery (1997) Privatisation and liberalisation of network utilities European Economic Review 41, pp.357-383

Books
M Armstrong, S Cowan and J Vickers (1994) Regulatory Reform: Economic Analysis and British Experience MIT Press
P M Jackson and C M Price (1994) Privatisation and regulation: a review of the issues Longman
S Martin and D Parker (1997) The impact of privatisation: Ownership and corporate performance in the UK Routledge
D Newbery (1999) Privatisation, restructuring and regulation of network utilities MIT Press
J Vickers and G Yarrow (1988) Privatisation: An economic analysis MIT Press
M Waterson (1988) Regulation of the firm and natural monopoly Blackwell

Notes

This module is at CQFW Level 6