Seminario: Transition Cost Regulation After Expropriation: Argentina's Public Utility Sector
Miércoles 23 de Abril, 17.00h.
Abstract
With the passing of the Economic Emergency Act in January 2002 which froze all public utility rates and simultaneously devalued the local currency, Argentina entered a period of systematic breaches of the guarantees granted by the government to public utility investors in the early nineties. Such guarantees provided safeguards that managed to substantially reduce expropriation risk in the sector by lowering investors’ cost of capital, thus encouraging foreign capital inflows. The implementation of the Emergency Act in the country also marked the begining of a period in which rule-based regulation of public utilities was replaced by a mechanism based on government discretion. This paper looks into the governance structure used by the government for the sector in the early nineties when the privatization process was designed and launched, and suggests what that governance structure should be today, more than a decade after the beginning of the contract breaches.
Andres Chambouleyron
Ph.D. in Economics, University of Texas at Austin. Senior Consultant at Compass Lexeconin.
He specializes in industri
al organization and economic regulation. His consulting background has focused on public utility regulation and antitrust analysis. He has been professor of microeconomics and industrial organization / regulation both in institutions like The University of Texas – Austin, Universidad de San Andrés, CEMA, Universidad Nacional de Córdoba and Instituto Tecnológico de Buenos Aires (ITBA).
al organization and economic regulation. His consulting background has focused on public utility regulation and antitrust analysis. He has been professor of microeconomics and industrial organization / regulation both in institutions like The University of Texas – Austin, Universidad de San Andrés, CEMA, Universidad Nacional de Córdoba and Instituto Tecnológico de Buenos Aires (ITBA).
Lugar: Campus Alcorta: Av. Figueroa Alcorta 7350, Ciudad de Buenos Aires.
Contacto: Cecilia Lafuente, Departamento de Economía
Organiza: Departamento de Economia
Contacto: Cecilia Lafuente, Departamento de Economía
Organiza: Departamento de Economia