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Modeling welfare loss asymmetries arising from uncertainty in the regulatory cost of finance

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  • Ian Dobbs

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  • Ian Dobbs, 2011. "Modeling welfare loss asymmetries arising from uncertainty in the regulatory cost of finance," Journal of Regulatory Economics, Springer, vol. 39(1), pages 1-28, February.
    • Handle: RePEc:kap:regeco:v:39:y:2011:i:1:p:1-28
    DOI: 10.1007/s11149-010-9131-2
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    References listed on IDEAS

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    1. Evans, Lewis T. & Guthrie, Graeme A., 2005. "Risk, price regulation, and irreversible investment," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 109-128, February.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    3. David M. Newbery, 2002. "Privatization, Restructuring, and Regulation of Network Utilities," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640481, December.
    4. Ian M. Dobbs, 2004. "Intertemporal price cap regulation under uncertainty," Economic Journal, Royal Economic Society, vol. 114(495), pages 421-440, April.
    5. Robert McDonald & Daniel Siegel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(4), pages 707-727.
    6. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
    7. Hayne E. Leland, 1974. "Regulation of Natural Monopolies and the Fair Rate of Return," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 3-15, Spring.
    8. David Besanko & Daniel F. Spulber, 1992. "Sequential-Equilibrium Investment by Regulated Firms," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 153-170, Summer.
    9. Lewis Evans & Graeme Guthrie, 2006. "Incentive Regulation of Prices When Costs are Sunk," Journal of Regulatory Economics, Springer, vol. 29(3), pages 239-264, May.
    10. Michael J. Brennan & Eduardo S. Schwartz, 1982. "Consistent Regulatory Policy under Uncertainty," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 506-521, Autumn.
    11. Richard Brealey & Julian Franks, 2009. "Indexation, investment, and utility prices," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(3), pages 435-450, Autumn.
    12. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
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    Cited by:

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    2. Ward Romeijnders & Machiel Mulder, 2022. "Optimal WACC in tariff regulation under uncertainty," Journal of Regulatory Economics, Springer, vol. 61(2), pages 89-107, April.

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    More about this item

    Keywords

    Allowed rate of return; Price Cap; Regulation; Simulation; WACC ; Welfare loss; C15; L51; L97;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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