The impact of rate-of-return regulation on technological innovation / Mark W. Frank.

Format:

Book

Author/Creator:

Frank, Mark W.

Series:

Bruton Center for Development Studies (Series)

The Bruton Center for Development Studies

Language:

English

Subjects (All):

Monopolies.

Technological innovations--Management.

Technological innovations.

Rate of return.

Physical Description:

ix, 135 pages : illustrations ; 23 cm.

Place of Publication:

Aldershot ; Burlington, VT : Ashgate, [2001]

Contents:

1 Rate-of-Return Regulation 6

1.1 Rate-of-Return Regulation in the Gas, Telephone, and Electric Industries 7

1.2 The Historical Development of Rate Regulation 13

1.3 Rate-of-Return Regulation in Action 18

1.3.1 Revenue Requirement Phase 19

1.3.2 Rate Design Phase 23

2 The Averch-Johnson Model 26

2.1 The Averch-Johnson Effect 27

2.2 A Geometric Treatment 32

2.3 Extensions of the Averch-Johnson Model 36

2.3.1 Regulation Lags 37

2.3.2 Non-Profit Maximization 42

2.3.3 The Cost of Capital and the Allowed Rate-of-Return 47

2.3.4 Induced Technical Change 49

3 Augmented Averch-Johnson 55

3.1 Augmented Averch-Johnson 55

3.2 Extension on Factor Augmentation with R&D Spillovers 64

Appendix Note on Neoclassical and Endogenous Technology 72

A.3.1 Neoclassical Production Functions with Technology 72

A.3.2 Endogenous Growth Production Functions 74

4 Research Joint Ventures 78

4.1 Noncooperative R&D and Output 81

4.2 Cooperative R&D and Noncooperative Output 84

4.3 Cooperative R&D and Output 86

5 Evidence From Electric Utilities in Texas 93

5.1 Translog Cost Model 95

5.2 The Data 103

5.3 Estimation and Results 106

Appendix Pooled Model 116

6 Implications and Conclusions 119

6.1 Welfare Implications 120.

Notes:

Includes bibliographical references (pages 127-133) and index.

ISBN:

0754616096

OCLC:

45888881