'Measuring' Independent Regulatory Authorities: A Review

14 Pages Posted: 7 Oct 2008 Last revised: 12 Jul 2014

See all articles by Massimiliano Vatiero

Massimiliano Vatiero

University of Trento - Department of Economics and Management; Università della Svizzera italiana

Date Written: October 7, 2008


In the past two decades, the thesis of the "rise of the regulatory state in Europe" has been widely discussed in the literature because of changes in the role of the State that have recently occurred. On the one hand, the State retreats from sectors such as utilities, where it was highly interventionist, but on the other hand it regulates the liberalized markets with less intrusive instruments. This implies a shift in the very functions of the State, notably from stabilisation and redistribution to regulation towards "authorized agents" called Independent Regulatory Authorities (IRAs).

In this paper we have summed up the literature on IRAs' performance distinguishing some approaches concerning analysis on IRA's performances.

We have introduced the investment-looking approach that focuses on the regulatory arrangements necessary to sustain private investment. Then we have reconsidered the dominant approach that, deriving from original contribution of Levy and Spiller and of Baldwin and Cave, as reformulated by Pontarollo and Oglietti, offers an institutional analysis of IRA's activities and results. For what concerns infrastructure industries the main contribution is due to Stern and Holder, but further refinements are furnished in our review. Finally, we have made a list of further contributions which may be collected with previous approaches.

JEL Classification: D73, H11, K23, L51

Suggested Citation

Vatiero, Massimiliano, 'Measuring' Independent Regulatory Authorities: A Review (October 7, 2008). Available at SSRN: https://ssrn.com/abstract=1280295 or http://dx.doi.org/10.2139/ssrn.1280295

Massimiliano Vatiero (Contact Author)

University of Trento - Department of Economics and Management ( email )

Via Inama 5
Trento, I-38100

Università della Svizzera italiana ( email )

Via Giuseppe Buffi 13
Lugano, Ticino 6900

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