Welfare consequences of tight price-cap regulation

Article Abstract:

The welfare implications of price-cap regulation of multi-product monopolies were investigated. A mathematical model that establishes a price index with fixed weights was utilized to analyze Laspeyres regulation in which the regulator sets the productivity growth factor to take away a firm's expected rents without knowing the actual marginal costs. Results showed that a tight cap coupled with a weak correlation between the weights in the price index and the optimal ones can result in welfare below the unregulated level.

Administration of General Economic Programs, Price & Wage Controls, Models, Monopolies, Welfare, Public assistance, Price indexes, Price control, Price regulations, Wage price policy

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Industries using advanced process controls getting ready to expand

Article Abstract:

Israel's market for industrial process controls is evaluated. Industries such as chemicals/pharmaceuticals, plastics, and food have invested in automated production processes, resulting in increased industrial output. Process control equipment imports grew to an estimated $322 million in 1996 and are expected to grow 10% per year through 1999. The best prospects for process control equipment sales in Israel include microprocessor-driven instruments, control valves, digital pressure transducers and online analyzers.

Process control instruments, Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables, Process Control Parts & Accessories, Analysis, Israel, International trade, Process control equipment, Control equipment industry, Control equipment

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