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Original Cost Versus Replacement Cost as a Basis for Rate Regulation

Hammond V. Hayes

The Quarterly Journal of Economics, 1913, vol. 27, issue 4, 616-629

Abstract: Two principles: (1) cost-new, or replacement cost, (2) original cost, 616. — Tendency to adopt replacement cost alone, 617. — Original cost, neglected because thought difficult to ascertain, 618. — How it can be ascertained, 620. — How the principle of replacement cost is in practice departed from, 623. — Both figures should be before the rate-making tribunal, 624. — The problem of investment by later stock-purchasers, 626.

Date: 1913
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The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

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