About this Economics, Econometrics and Finance article
Depreciation, Investor Compensation, and Welfare Under Rate-of-return Regulation by Timothy J. Brennan is a Economics, Econometrics and Finance article available to read on EtoBox.
Depreciation schedules allocate capital expenditure over time. Investors are properly compensated under any full depreciation schedule, when the allowed rate of return plus inflation adjustments to the rate base just equal the investors' nominal discount rate. Whether changes in this nominal rate are reflected in adjustments to the rate base or the rate of return, depreciation schedules can be chosen to generate efficient time paths of output prices. Practical limits on depreciation schedules, nominal rates, or information may affect the choice between adjusting the rate base or rate of return for temporal changes in capital cost.
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Timothy J. Brennan
- Publisher
- Springer US; Springer-Verlag; Kluwer Academic Publishers; Springer Science and Business Media LLC (ISSN 0889-938X)
- Published
- 1991
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)