IDEAS home Printed from https://ideas.repec.org/a/sae/ausman/v10y1985i2p83-97.html
   My bibliography  Save this article

Financial Targeting for Public Enterprise: The Criterion of a Rate of Return to Capital

Author

Listed:
  • R. R. Officer

    (Graduate School of Management, University of Melbourne.)

Abstract

The rate of return to capital employed is the most common of the control and perfor Mance measures used in the private sector. It is often suggested that public sector enterprises, particularly statutory trading authorities, should be compelled to adopt a target rate of return to encourage the efficient allocation of resources by such enterprises. This paper outlines the problem of such a control measure for public sector enterprises. It is difficult to conceive of any single line measure of perfor Mance for control that can be adopted for a non-competitive public sector enterprise that does not risk creating more problems than it solves.

Suggested Citation

  • R. R. Officer, 1985. "Financial Targeting for Public Enterprise: The Criterion of a Rate of Return to Capital," Australian Journal of Management, Australian School of Business, vol. 10(2), pages 83-97, December.
    • Handle: RePEc:sae:ausman:v:10:y:1985:i:2:p:83-97
    DOI: 10.1177/031289628501000205
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/031289628501000205
    Download Restriction: no
    File URL: https://libkey.io/10.1177/031289628501000205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Spann, 1974. "Rate of Return Regulation and Efficiency in Production: An Empirical Test of the Averch-Johnson Thesis," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 38-52, Spring.
    2. Gravelle, H S E, 1976. "Public Enterprises under Rate of Return Financial Targets," The Manchester School of Economic & Social Studies, University of Manchester, vol. 44(1), pages 1-16, March.
    3. Leon Courville, 1974. "Regulation and Efficiency in the Electric Utility Industry," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 53-74, Spring.
    4. H. Craig Petersen, 1975. "An Empirical Test of Regulatory Effects," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 111-126, Spring.
    5. Gravelle, H S E, 1977. "Marginal Cost Pricing under Rate of Return Financial Targets," The Manchester School of Economic & Social Studies, University of Manchester, vol. 45(3), pages 236-240, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael E. Bradbury & Jill Hooks, 2015. "Ownership and Performance in a Lightly Regulated Environment," Australian Accounting Review, CPA Australia, vol. 25(1), pages 100-112, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lynk, E. L., 1995. "Testing efficiency in intermediate regulated industries," Economics Letters, Elsevier, vol. 49(3), pages 323-328, September.
    2. Mirucki, Jean, 1980. "Comportement de l'entreprise réglementée: étude de l'hypothèse Averch-Johnson [Behavior of the Regulated Firm: A Study of the Averch-Johnson Hypothesis]," MPRA Paper 27669, University Library of Munich, Germany, revised 1982.
    3. Mirucki, Jean, 1980. "Vérification des conditions d'efficacité dans la production chez Bell Canada [Checking the conditions of efficient production in Bell Canada]," MPRA Paper 30147, University Library of Munich, Germany, revised Jun 1980.
    4. Meredith Fowlie, 2010. "Emissions Trading, Electricity Restructuring, and Investment in Pollution Abatement," American Economic Review, American Economic Association, vol. 100(3), pages 837-869, June.
    5. Fowlie, Meredith, 2005. "Emissions Trading, Electricity Industry Restructuring and Investment in Pollution Abatement," 2005 Annual meeting, July 24-27, Providence, RI 19265, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Paul L. Joskow & Roger G. Noll, 1981. "Regulation in Theory and Practice: An Overview," NBER Chapters, in: Studies in Public Regulation, pages 1-78, National Bureau of Economic Research, Inc.
    7. Francis J. CRONIN & Stephen A. MOTLUK, 2007. "Agency Costs Of Third‐Party Financing And The Effects Of Regulatory Change On Utility Costs And Factor Choices," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(4), pages 537-565, December.
    8. Rode, David C. & Fischbeck, Paul S., 2019. "Regulated equity returns: A puzzle," Energy Policy, Elsevier, vol. 133(C).
    9. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
    10. John H. Crockett Jr., 1978. "Differential Pricing, Firm Capitalization, and the Regulatory Process in the Electric Power Industry," The American Economist, Sage Publications, vol. 22(1), pages 7-11, March.
    11. Gerald Granderson & C. A. Knox Lovell, 1998. "The Impact of Regulation on Input Substitution and Operating Cost," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 83-97, July.
    12. Ohler, Adrienne M., 2014. "Behavior of the firm under rate-of-return regulation with two capital inputs," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 61-69.
    13. Halkos, George & Tzeremes, Nickolaos, 2011. "A conditional full frontier approach for investigating the Averch-Johnson effect," MPRA Paper 35491, University Library of Munich, Germany.
    14. Louis Alessi, 1974. "Aneconomic analysis of government ownership and reculation," Public Choice, Springer, vol. 19(1), pages 1-42, September.
    15. Scobie, Grant M. & Franklin, David L., 1977. "The Impact Of Supervised Credit Programmes On Technological Change In Developing Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(01), pages 1-12, April.
    16. Maria Brouwer, 2001. "Deregulation of Network Industries – Theory and Dutch Experience," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 3-27.
    17. Grimley, Matthew & Chan, Gabriel, 2023. "“Cooperative is an oxymoron!”: A polycentric energy transition perspective on distributed energy deployment in the Upper Midwestern United States," Energy Policy, Elsevier, vol. 172(C).
    18. Earl A. Thompson, 1977. "An Economic Basis for the "National Defense Argument" for Protecting Certain Industries," UCLA Economics Working Papers 084, UCLA Department of Economics.
    19. Stefan Seifert, 2016. "Semi-Parametric Measures of Scale Characteristics of German Natural Gas-Fired Electricity Generation," Discussion Papers of DIW Berlin 1571, DIW Berlin, German Institute for Economic Research.
    20. James Giordano, 1983. "The Changing Impact of Regulation on the U.S. Electric Utility Industry, 1964-1977," Eastern Economic Journal, Eastern Economic Association, vol. 9(2), pages 91-101, Apr-Jun.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ausman:v:10:y:1985:i:2:p:83-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.agsm.edu.au .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.