Preview: Price Caps, Rate-of-Return Regulation, and the Cost of Capital

Price Caps, Rate-of-Return Regulation, and the Cost of Capital

This Note compares the effects of price cap and rate-of-return regulation on the risk borne by regulated utilities. It present evidence that price cap regulation subjects firms to greater risks and therefore raises their cost of capital. This resul...

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Bibliographic Details
Main Authors:	Alexander, Ian, Irwin, Timothy
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AFFILIATED ORGANIZATIONS CAPITAL COSTS CONSUMERS COST OF CAPITAL COST SAVINGS COSTS OF CAPITAL DECISIONMAKING EMPIRICAL EVIDENCE EQUITY HOLDINGS INFLATION INVESTMENT CAPITAL PORTFOLIO PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE OF WATER PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY REGULATORY AGENCIES UTILITIES CAPITAL COSTS RATE OF RETURN REGULATIONS PRICE POLICY PRICE CONTROLS
Online Access:	http://documents.worldbank.org/curated/en/1997/09/694600/price-caps-rate-of-return-regulation-cost-capital http://hdl.handle.net/10986/11575

Price Caps, Rate-of-Return Regulation, and the Cost of Capital

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