Erratum: Flotation Cost Adjustment in Rate of Return Regulation: A Reply
نویسندگان
چکیده
منابع مشابه
Dynamics of Rate-of-Return Regulation
It is commonly accepted in the industrial organization literature that rate of return regulation leads to inefficient outcomes. Since prices are calculated so as to cover the regulated firm’s average cost, which includes the periodic fixed costs associated with plant property and equipment, the conventional argument is that prices must exceed the marginal cost of production. This paper examines...
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This paper considers the difference between two types of regulation as they affect the regulated firm. Using the electricity distribution industry in Victoria as a case study, we discuss the impact of the periodic resetting of regime parameters which is a standard feature of price cap regimes. We explain why such resets are necessary and how the resulting incentives differ from those generated ...
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the rule is RPI + K, where K represents both expected productivity gains and a permitted annual increase in the real price of water to allow for quality improvements (think of it as RPI – X + Q, where Q stands for the quality improvement). Since 1989, price caps have also been used in the United States to adjust the prices charged by the long-distance telephone company AT&T. In New Zealand, a p...
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Public utility regulation arose naturally in the nineteenth century for gas, water, rail, telegraph, and later, electricity and telephony because these utilities require a fixed network to deliver their services. These networks need access to rights of way which requires community or government approval, while the network is a natural monopoly that precludes efficient competition and confers po...
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BACKGROUND Pharmaceutical expenditure is undergoing very high growth, and accounts for 30% of overall healthcare expenditure in Spain. In this paper we present a prediction model for primary health care pharmaceutical expenditure based on Clinical Risk Groups (CRG), a system that classifies individuals into mutually exclusive categories and assigns each person to a severity level if s/he has a ...
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ژورنال
عنوان ژورنال: The Journal of Finance
سال: 1984
ISSN: 0022-1082
DOI: 10.1111/j.1540-6261.1984.tb02330.x