The movement from traditional regulatory hearings to negotiated settlements represents both a departure from cost of service regulation and a relaxation of regulatory oversight. Under negotiation parties are able to renegotiate inclusions in their cost of service while simultaneously creating a profit margin for the regulated firm where none existed under the cost of service outcome of a tradit...

This paper examines how asset risk impacts corporate investment and financing decisions. We derive a general model that incorporates risk, adjustment cost, and depreciation features of assets-in-place into investment decisions. The model suggests that the risk and adjustment cost of assets-in-place reduce both corporate investment and financing. We empirically test the model in a panel of US fi...

This paper assesses the day of the week effect of the daily depreciation of the Turkish lira (TL) against the US dollar (USD) and its volatility. The empirical evidence from Turkey presented here suggests that Thursdays are associated with higher and Mondays with lower depreciation rates compared to those of Wednesdays. Moreover, Mondays and Tuesdays are associated with higher volatility than W...

A software program is described which will enable laboratory managers to calculate, for their laboratory over a 12 month period, the cost of each test or investigation and of components of that cost. These comprise the costs of direct labour, consumables, equipment maintenance and depreciation; allocated costs of intermediate operations--for example, specimen procurement, reception, and data pr...

How do different exporters react to exchange rate changes? Theory, empirics and aggregate implications This paper analyzes the reaction of exporters to exchange rate changes. We present a model where, in the presence of distribution costs in the export market, high and low productivity firms react differently to a depreciation . Whereas high productivity firms optimally raise their markup rathe...

Over the past decade, the United States has offered investment incentives in the form of larger depreciation savings, namely, bonus depreciation. The neoclassical investment model implies that investment responds to changes in depreciation savings, but there have been few direct attempts to investigate this implication. This paper examines investment patterns surrounding the 1999 shortening of ...

This work analyses the market value of second hand agricultural tractors in Spain for the period 1999-2002, with the aims of obtaining the most appropriate valuation models (through the use of ordinary least squares regression) and proposing an empirical model that estimates the true depreciation of these vehicles. Differences in tractor depreciation were studied in terms of the three horsepowe...

The decision of whether to manufacture products within the US, manufacture internationally or to outsource production depends critically upon a thorough understanding of the costs and benefits of each option. In this paper, we contribute to such an understanding by considering the impact of US tax depreciation rules, which differ depending upon whether a US corporation locates its assets at dom...

All opinions expressed here are those of the authors and not those of the Economics Education and Research Consortium Research dissemination by the EERC may include views on policy, but the EERC itself takes no institutional policy positions The authors investigate the possibility of utilizing the depreciation mechanism to provide incentives for undertaking investment in the real sector of the ...