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Large sunk costs and incomplete regulatory contracts in public utilities create the possibility of opportunistic behavior by either regulators or regulated firms. We present an empirical methodology for identifying opportunism within a regulated setting, and apply it to the large-scale cost disallowances levied by state regulators on electric utilities(More)
Research produced by the Center is released subject to the quality of its methods and analysis and is not dependent upon any of the policy positions of current, previous or prospective Center supporters. A complete list of financial supporters that enable the activities of the Center is available on our website, cbpp.georgetown.edu. These funders include,(More)
While Americans are spending an increasing amount of leisure time engaged in online activities, total leisure time has remained constant since at least 2003. This paper uses data from the American Time Use Survey from 2003-2010 to investigate the extent to which online leisure is substituting for other leisure activities. The analysis suggests that online(More)
The now standard principal-agent model of regulator-firm interactions typically assumes the presence of a single regulator and an exogenously determined information asymmetry between the principal and the agent. In this paper we draw upon a unique data set of regulatory inspections conducted by the U.S. Food and Drug Administration (FDA) to explore the(More)
This paper examines the concept of revenue adequacy, a benchmark of United States railroad firms' financial performance calculated annually by regulatory oversight bodies. The paper addresses questions around the origins, measurement, informational provisions, value and policy benefits and costs of revenue adequacy. An examination of the historical origins,(More)
The Staggers Rail Act of 1980 is widely perceived to have deregulated the U.S. freight rail industry. Yet substantial rail traffic remains potentially subject to regulatory rate intervention , and in the Post-Staggers era regulators have developed a detailed and expanding regulatory framework for rail shipments. This regulatory framework embodies elements(More)