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Market Liberalization, Regulatory Uncertainty, and Firm Investment

机译:市场自由化,监管不确定性和公司投资

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This paper analyzes the effects of regulatory uncertainty regarding labor costs on investment in a liberalized market. We distinguish between the external investment margin (market entry) and the internal investment margin (technology), and establish that regulatory uncertainty affects these margins differently, encouraging market entry, but discouraging technological investment. As a consequence, the impact of regulatory uncertainty on competition in liberalized markets is a combination of these two countervailing forces.
机译:本文分析了有关劳动力成本的监管不确定性对自由化市场投资的影响。我们区分外部投资边际(市场准入)和内部投资边际(技术),并确定监管不确定性对这些边际的影响不同,从而鼓励市场准入,但不利于技术投资。结果,监管不确定性对自由化市场竞争的影响是这两种反作用力的组合。

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