Digital securities and English law: the gold standard?
The UK Jurisdiction Taskforce (‘UKJT’), part of LawtechUK, has produced a Legal Statement on how English law supports the use of distributed ledger technology in equity and bond markets (also known as ‘digital securities’).1 To inform and support UKJT’s work, LawtechUK commissioned Oxera to provide economic analysis of the… Read More
What does the cost of debt tell us about the cost of equity?
Applications of the capital asset pricing model (CAPM) in some sectors (e.g. banking, utilities and infrastructure) imply very low estimates of the cost of equity. But when does ‘very low’ become ‘too low’? And what can be inferred from data observed in debt markets when it comes to estimating… Read More
Understanding and influencing behaviour: economics vs science
Have you heard the terms behavioural science and behavioural economics floating around? Individuals, corporations and governments are turning to both in the quest to understand and change human behaviour—but does their application add value? And what is the difference between these two similarly named disciplines? With reference to our… Read More
Contemporary infrastructure business cases: assessing impact in the round
Recent developments in infrastructure business cases reflect a complex and volatile environment. Writing infrastructure business cases now comes with new challenges—but how can we tackle these challenges in such a rapidly evolving environment? We explore the key points that factor into this, including the Five Case Model, value-based decision-making, uncertainty,… Read More
Decoupling electricity and fossil fuel prices: bright idea or lights out?
The prolonged period of high energy prices in Europe has called into question the current design of electricity markets, and in particular the direct link between gas and electricity prices. Various short-term measures have been adopted to break this link, and some more fundamental changes to electricity markets are… Read More
Most-favoured-nation clauses: how to assess their competitive effects?
Most-favoured-nation clauses (MFNs) remain a hot topic in competition policy. The direction of travel has generally been one-way, with the UK and European vertical block exemption regimes designating wide MFNs as hardcore or excluded restrictions, and both wide and narrow MFNs being prohibited for designated gatekeepers under the EU’s… Read More
From RPI to RIP: what I have learned about regulation
In his final Agenda article as a Director of Oxera, Mike Toms looks back on a 35+ year career in economic regulation, highlighting some of the key changes and drawing out lessons learned over that time. Is economic regulation in a better place now than it was when Mike… Read More
Computer move? Chess cheaters and the limits of algorithmic detection
In September 2022, World Chess Champion Magnus Carlsen dramatically quit a tournament after losing a game to teenage Grandmaster Hans Moke Niemann, leading many to accuse Niemann of cheating. Niemann has since launched a court case for slander, libel and unlawful group boycott against Carlsen and other members of… Read More
Is it time to review the pay review bodies?
Waves of strike action across the public sector have reignited interest in how governments set public-sector pay. In the UK, pay review bodies (PRBs) play a critical role in the pay-setting process, by advising government on pay settlements for almost half of public-sector workers. Should PRBs be reformed in… Read More
Agents of change: bringing economic models closer to reality
Ever wondered how economic models can describe people and their behaviour? Agent-based modelling (ABM) may be the answer. It allows economists to explore complex systems and phenomena in a bottom-up, data-driven way. Unlike traditional economic models, which are often constrained by assumptions and simplifications, ABM offers a flexible and… Read More