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Contributions of Neoclassical Economics to Public Utility Analysis

Sanford Berg and John Tschirhart ()

Land Economics, 1995, vol. 71, issue 3, 310-330

Abstract: Neoclassical economics, the dominant economics paradigm, has influenced and been influenced by developments in regulated industries. We identify major theoretical and empirical accomplishments, discuss the impact of these accomplishments on policy development, and list the channels through which the impacts are made possible. We then discuss regulatory politics, lack of research perspective, an overly narrow focus on economic efficiency, and the academic profession as factors limiting the impact of neoclassical economics on public policy.

Date: 1995
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