Valuation Models in Regulation

Blaine E. Davis and F.T. Sparrow

Bell Journal of Economics, 1972, vol. 3, issue 2, 544-567

Abstract: This paper surveys and critiques the financial models of the firm used in rate of return regulation. The increasingly wide assortment of models used in rate of return cases might appear to promise a rich classification of contrasting assumptions and a diverse catalogue of model constructs. Nothing could be further from the findings of this paper. It is shown that all models considered have assumed either explicitly or implicitly the financial market conditions used in the development of the original Modigliani and Miller (M-M) model of 1961. Thus, the consequences, criticisms, and attributes of the Modigliani-Miller financial world seem to represent the current state of rate of return modeling.

Date: 1972
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://links.jstor.org/sici?sici=0005-8556%2819722 ... O%3B2-A&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:bellje:v:3:y:1972:i:autumn:p:544-567

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in Bell Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().