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Implications of Europe's electric power liberalization, on power market competitiveness are analyzed.

Between 1980 and 1998 every Canadian province passed legislation that in some way relaxed restrictions on Sunday shopping. This study exploits the variation in deregulation dates between provinces to identify how retail employers adjust employment and hours of work when deciding to open on Sundays. A major complication of this analysis is to first determine for which provinces the deregulation dates are useful indicators of increases in Sunday store openings. This paper uses a unique trading-day regression approach to identify these provinces and then uses aggregate data from the selected provinces to estimate a simple dynamic labour demand model that allows employment and hours to be imperfect substitutes in production. The results suggest that retailers' needs for Sunday labour were disproportionately satisfied through increases in employment levels. Comparison of the estimates at three levels of the retail industry suggests that the employment and hours gains were larger among general merchandise stores than among more specialized retail establishments and relatively modest at the aggregate retail industry level. In addition, despite evidence of an immediate shortfall in the employment level below the long-run optimal level, the results suggest that firms were unable to compensate by temporarily increasing the hours of their existing employees. JEL Classification: J23; L81 Keywords: Employment determination; Demand for labour; Retail and wholesale trade

This paper evaluates the quantitative impact of capital liberalization on the taxation structure and welfare of the liberalizing countries when governments conduct fiscal policy optimally but without commitment (time-consistent policies). The transition from a regime of capital autarky to a regime of free mobility leads to a decrease in the long-term tax rate on capital of 13 percent and an increase in the tax rate on labor of 2 percent. As a consequence of this taxation shift, welfare increases by about 1 percent. The reduction in capital taxation induced by capital market liberalization is welfare improving because, in the absence of capital mobility, the time-consistent policies over-tax capital. JEL classification: F2; F4; F42 Keywords: Capital mobility: International tax competition; Macroallocation

We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the relative return to skilled labor. When firms get access to a larger market, the relative profitability of different technologies changes in favor of the more skill-intensive technology. As the composition of firms changes to one with predominantly skill-intensive firms, the relative demand for skilled labor increases. This way, we establish a link between trade, technology and relative returns to skilled and unskilled labor. JEL classification: F12; F15; J31; 033 Keywords: Technology; Trade; Economic integration; Relative wages

A study examining the effects of regulatory policies of European Union on the demand and prices of mobile telecommunication services in the member countries of the union is presented. It is observed in this context that liberalization is directly proportionate to demand and indirectly proportionate to prices.

This paper develops an argument why retail prices may rise in response to the deregulation of opening hours. We make this point in a model of imperfect duopolistic competition. In a deregulated market retailers view the choice of opening hours as a means to increase the degree of perceived product differentiation thus relaxing price competition. If the consumers' preference intensity for time is sufficiently high the equilibrium configuration has asymmetric shopping hours where one retailer stays open for longer than the other. Both retailers charge higher prices than under regulation, and both are strictly better off. JEL classification: D21; LS1; L81 Keywords: Opening hours; Retailing; Deregulation; Multi-dimensional product differentiation

This paper analyzes the effect of globalization (lower trade costs) on production and trade patterns if, firms are vertically linked, stages of production differ in labor-factors intensity and countries differ in labor-factors prices. In order to reflect the 'Continental Europe' experience, relative wages are assumed fixed and spatial changes in production are translated into changes in relative (skilled to unskilled) employment levels. The asymmetry in factors prices across countries results in a unique agglomeration equilibrium for a broad range of trade costs. At low trade costs, firms' location depends on production costs--vertical specialization occurs. This paper also provides a consistent explanation of the observed increase in employment inequality between skilled and unskilled workers in relatively high-unskilled wage countries. Keywords: Agglomeration; Intermediate inputs; Skilled/unskilled workers; Trade liberalization; Vertical specialization

A study analyzing the public support for forming a market economy in Eastern Europe is presented. The effects of factors such as inflation, unemployment, privatization, enterprises restructuring, democratization etc., are discussed.

This paper analyzes the distributional effects of changes in the intensity of product market competition. The focus is on the interaction between imperfect competition in product markets and bargaining in the labor market. The main result is that, while a uniform intensification of product market competition increases employment, it may cause real wages to fall, in the short run as well as in the long run. This is especially likely if labor market regulations are favorable to workers. Therefore, product market and labor market regulations tend to reinforce each other politically, and compensatory fiscal transfers may be needed in order to enact employment-enhancing deregulation policies. JEL classification: E24; E25; J5 Keywords: Imperfect competition; Wage bargaining; Deregulation

A model with monopolistic competition for goods and labor market bargaining is used to test the effects of deregulation on competition and bargaining power.

The authors explore various European coutries' approaches to achieving green electricity and note that there may be reason to differentiate policies based on location.

The advantages of competition and deregulation in the European Union's utility markets far outweigh the loss of dominant market share by domestic utilities. Liberalisation of utility sectors has generally trailed the European single market, mainly because of lack of competition in national markets. The telecommunications sector has seen the most progress, with competition in voice communications due in most markets by the beginning of 1998. Utilities must prepare for further liberalisation in Europe if they are to remain competitive.

Sustainability of ten central and east European countries (CEE10) post liberalization and its impact is analyzed. A comparative study of CEE10 with other CEE and new independent states is presented.

Liberalization of trade regimes during the 1990's removed outward processing customs arrangements in the countries of East-Central Europe (ECE) for apparel production. Further shifts to lower cost parts of the region are expected in future, however the ability of the ECE firms to be able to continue to 'cut it' remains to be seen.

Byline: Ian Rutledge, Philip Wright Drawing on extensive empirical research over the last decade, this paper analyses the changes in the corporate structure of the North American natural gas industry which have been stimulated by liberalisation, and considers whether they are likely to be imitated in the context of the increasing pace of European liberalisation as the European Natural Gas Directive comes into force. It finds that the European context differs in very significant respects from that of North America such that, whereas horizontal integration to re-establish market power has been a significant response to liberalisation in North America, incumbents in Europe will still be able to benefit from market power derived from vertical integration for some time to come.