Competition and Regulation Times. September 2005. Issue 17.

Abstract

• Title: You never had it so good the parallel importing of DVD's Abstract: 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. Author: Lewis Evans, Matt Burgess
• Title: Why merit reviews of regulatory decisions are a good thing to have Abstract: 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
• Title: OECD finds weapons of tax destruction Abstract: 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
• Title: Upping the game in our financial markets Abstract: 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
• Title: Not so bright? The darker side of PPPs Abstract: 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
• Title: Breeding fiercer watchdogs for corporate governance Abstract: 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
• Title: Corporate investment: is the long-term view always best? Abstract: 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. Author: Glenn Boyle, Graeme Guthrie