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Public Policy: Using Market-Based Approaches NERA Economic Consulting (2004) Review of the First and Second Years of the UK Emissions Trading Scheme. Newbery, D. and Pollitt, M. (1997). ‘The restructuring and privatisation of the CEGB- was it worth it?’ Journal of industrial economics XLV(3). Newell, R. and K. Rogers. (2003). ‘The market-based lead phasedown’. RFF discussion paper 03-37. Niskanen, W.A. (1977). Bureaucracy and Representative Government. Aldine- Atherton: Chicago. Oates, W. and N. Strassman, (1984), ‘Effluent Fees and Market Structure’, Journal of Public Economics 24(1). ODPM (2002) Choice-Based Lettings Pilot Scheme: Bidding Guidance. Unpublished guidance circulated to all local authorities. ODPM (2005) Monitoring the longer term impacts of choice based lettings. Unpublished invitation to tender. ODPM (2005) Applicants longer term perspectives on choice based lettings. Unpublished invitation to tender. Ohlsson, H. (1998). Ownership and production costs. Choosing between public production and contracting out. Osborne, D. and Gaebler, T. (1992) Reinventing Government Addison-Wesley. Perry, M. and J. Sakovics (2003), ‘Auctions for Split-Award Contracts,’ The Journal of Industrial Economics 2. Pesendorfer, M. (2000). ‘A study of collusion in first price auctions’. Review of Economic Studies 67. Porter and Zona. (1993). ‘Detection of bid rigging in procurement auctions’. Journal of Political Economy 101. Rothschild, M. and J.E. Stiglitz (1976) ‘Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Incomplete Information.’ The Quarterly Journal of Economics, 90. Seshandri, S., K. Chatterjee and G. Lilien (1991), ‘Multiple Source Procurement Competitions’, Marketing Science 10. Sheang, K. (2000), ‘Production Cost, Transaction Cost, and Outsourcing Strategy: A Game Theoretical Analysis’, mimeo, National University Shelter, Homelessness Act webpage: http://www.homelessnessact.org.uk Shichor, D. (1995), Punishment for profit: private prisons/public concerns. Thousand Oaks, CA: Sage. Shortle,J. and J. Dunn (1986) ‘The Relative Efficiency of Agricultural Source Water Pollution Control Policies’, American Journal of Agricultural Economics 68. Stavins, R. 2001. Lessons from the American Experiment with Market-based Environmental Policies. RFF discussion paper 01-53. 200
References Stigler, G. (1971). ‘The Theory of Economic Regulation.’ The Bell Journal of Economics and Management Science, Vol.2., No.1. Stiglitz, J.E. (2000) Economics of the Public Sector. Third Edition. W.W.Norton and Company, New York/London Szymanski, S. and Wilkins, S. (1993). ‘Cheap rubbish? Competitive tendering and contracting out in refuse collection- 1981-88’. Fiscal Studies 14(3). Terkla, D. (1984). ‘The Efficiency Value of Effluent Tax Revenues’, Journal of Environmental Economic Management 11(2). Thomas, C. (2001), ‘Collusion and optimal reserve prices in repeated procurement auctions’, Working paper no.242, Federal Trade Commission. Tirole, J. (1994) ‘The Internal Organisation of Government.’ Oxford Economic Papers 46. Tullock, G. (1965), The Politics of Bureaucracy Westkog H. (1996) ‘Market Power in a System of Tradable CO Quotas’. The 2 Energy Journal, Vol. 17, No 3. Wilson, T. (1998) ‘Contractual Management of Custodial Services in the United Kingdom’, Chapter 3 in Privatizing Correctional Services, Ed. S.T. Easton, The Fraser Institute: Vancouver, British Columbia, Canada. 201
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DTI ECONOMICS PAPER NO.14 Public Po
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DTI ECONOMICS PAPER NO.14 Public Po
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Contents Acknowledgements vi Forewo
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Contents Section 11 Emissions Tradi
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Foreword There is increasing intere
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SECTION 1 Introduction and summary
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Public Policy: Using Market-Based A
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SECTION 2 Using market mechanisms U
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SECTION 3 Lessons for the design an
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SECTION 4 Introduction This part of
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SECTION 7 Market-Based Mechanisms W
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SECTION 8 Framework for assessing m
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Part IV Case Studies 73
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● the Green and White papers behi
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A prison failing to deliver on its
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Table 9.3 Companies providing priso
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Section 9 - Competitive Tendering o
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detect any deviation from a collusi
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at HMPS began as an equal mix of th
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(e.g. lighting). This impact could
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MARKET POWER The full benefits of c
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However, it should be noted that te
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on competition is uncertain. The ab
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Controlling for problems of asymmet
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Procurement process design One way
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however, financial deductions are m
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The Independent Monitoring Board at
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Figure 9.1: Difference between the
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‘While there were staff in the pu
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design the invitation to tender and
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and demand conditions. Second, we d
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DEMAND Anyone can apply to a local
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● Rent deposit guarantee by the l
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The Green Paper stated the Governme
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It was not an objective of ODPM or
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DESCRIPTION OF MARKET MECHANISM The
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Once the outcome is determined, fee
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DEVELOPMENTS OVER TIME The major mo
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Concerns about capacity constraints
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from those already located within t
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In several areas, registrations by
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Controlling for information problem
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extent though, it was competition b
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Section 10 - Choice-Based Letting i
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levels are reducing and new tenants
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desired effect of limiting points-c
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efficiency savings in some areas. T
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SECTION 11 Emissions Trading Introd
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Page 161 and 162: A more detailed and diagrammatic de
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Page 171 and 172: consultants to Defra of £11 per to
Page 173 and 174: Participation has helped us to rais
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Page 178 and 179: SECTION 12 Issues in the implementa
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Page 212: Printed in the UK on recycled paper
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