Regulated utilities are tasked with investing in the electricity distribution system in a way that delivers a reliable power service. This research explains how the regulatory process in the United States leads to under-investment in such infrastructure and too many power outages. The findings show how the politics of the regulatory environment can sometimes help and sometimes harm the problem of under-investment.
Dave Donaldson is an empirical trade economist and recipient of the 2017 John Bates Clark Medal. His research examines the intersection of international trade and development economics. Donaldson’s paper “Railroads of the Raj: Estimating the Impact of Transportation Infrastructure?” (American Economic Review, forthcoming) investigates the economic benefits from building transportation infrastructure studying the case of railways in 19th century India. This paper is widely viewed as both a methodological breakthrough and substantively important paper in the field. The article below provides a summary of his work.