Issue 17 September 2005
In this issue are the following articles:
You never had it so good the parallel importing of DVD's
For a brief period from 1998 to 2001, the parallel importing of DVDs was permitted in New Zealand. Matt Burgess and Lewis Evans saw this natural experiment' as a opportunity to examine the benefits and costs of parallel importing. And their conclusion is that the parallel importation of DVDs enhanced the welfare of consumers.
Why merit reviews of regulatory decisions are a good thing to have
Regulators are not perfect. The decisions and processes can be in error - and such errors can have large social and economic costs. So there's a need for a mechanism that will correct these errors quickly. As David Round points out, the existence of a merit review process is the sine qua non of a socially optimal regulatory process.
Author:
David Round
OECD finds weapons of tax destruction
As a way of promoting their economic growth, many developing countries - and most developed countries - offer tax incentives of one kind or another to foreign investors. But, since 1996, the OECD has been engaged on a campaign to stop developing countries from doing this. Michael Littlewood examines the OECD's campaign, and looks at some of the questions it raises.
Author:
Michael Littlewood
Upping the game in our financial markets
New Zealand's financial sector is dominated by banks - and most of our financial markets are underdeveloped by international standards. That was Paul Dickie's verdict in his first article on New Zealand's financial markets (see Competition & Regulation Times Issue 16). Now he looks at what could be preventing the markets from developing transparency and competitiveness, and what can be done about it.
Author:
Paul Dickie
Not so bright? The darker side of PPPs
Public-private partnerships (PPPS) are being debated in New Zealand for new roads and other major infrastructure. They've long been popular in Australia and the United Kingdom, where they harness private-sector innovation and efficiency to deliver infrastructure at lower costs and lower risks to taxpayers. But, as David Ehrhardt reports, it's becoming clearer that PPPs have their dark side.
Author:
David Ehrhardt
Breeding fiercer watchdogs for corporate governance
Because corporate insiders have an inherent information-advantage over external stakeholders, common sense dictates that governance systems should empower independent parties to monitor corporate behaviour and reports - in other words, we need fiercer watchdogs in corporate governance. Boston College's Edward Kane looks at how to put more bark (and bite) in the dog.
Author:
Edward J. Kane
Corporate investment: is the long-term view always best?
Why do firms continue to use investment-decisions criteria that are apparently biased against long-term projects? Is this simply a reflection of ongoing corporate myopia, or does it represent an intuitive response to the underlying costs and benefits of long-term projects? Glenn Boyle and Graeme Guthrie explain how seemingly myopic criteria can in fact approximate optimal decisions.
