IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/v96y1988i1p177-88.html
   My bibliography  Save this article

Foresight and Public Utility Regulation

Author

Listed:
  • Gort, Michael
  • Wall, Richard A

Abstract

This paper develops a model that shows the effects of rational expectations, and of efficient mark ets, on public utility regulation. It is shown that the feedback from investor expectations to regulatory behavior, together with investor expectations that take account of this feedback, basically alters th e consequences of regulatory decisions. The analysis examines the eff ects of a deviation between the allowed rate of return and the cost o f capital, with both perfect and imperfect investor foresight. It als o assesses the consequences of differing expected growth rates. Concl usions are drawn for the effects of regulatory decisions on resource misallocation and of regulatory lag on incentives. Copyright 1988 by University of Chicago Press.

Suggested Citation

  • Gort, Michael & Wall, Richard A, 1988. "Foresight and Public Utility Regulation," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 177-188, February.
    • Handle: RePEc:ucp:jpolec:v:96:y:1988:i:1:p:177-88
    DOI: 10.1086/261530
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/261530
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.
    File URL: https://libkey.io/10.1086/261530?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Roger Buckland & Julian Williams & Janice Beecher, 2015. "Risk and regulation in water utilities: a cross-country comparison of evidence from the CAPM," Journal of Regulatory Economics, Springer, vol. 47(2), pages 117-145, April.

    More about this item

    Statistics

    Access and download statistics

    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:ucp:jpolec:v:96:y:1988:i:1:p:177-88. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    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.