Estimating the Optimal Scale of Public Investments: The Case of Low-Level Radioactive Waste Disposal Facilities
Journal of Regulatory Economics, 2000, vol. 17, issue 2, 173-88
This paper addresses the regulatory problem of estimating the optimal scale of public capital investments, such as regional low-level radioactive waste (LLRW) disposal facilities and sports stadiums, when regulators can require information disclosures from firms. I evaluate the efficacy of the Illinois LLRW mandatory forecast disclosure rule against an estimated ARIMA model of LLRW volume disposed over the 1985-95 period; the ARIMA model is shown to be more accurate. I conclude with an ARIMA model forecast of lifecycle volumetric capacity of a proposed LLRW disposal facility in Illinois. Copyright 2000 by Kluwer Academic Publishers
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