Regulatory Risk

Kolbe, A. Lawrence; Tye, William B.; Myers, Stewart C.

ISBN 10: 0792393309 / ISBN 13: 9780792393306

Published by Kluwer Academic Publishers, 1993

About this Item

Develops a new theory of asymmetric regulatory risk that shows that infallible estimates of the cost of capital are sure to provide downward-biased estimates of the necessary allowed rates of return in the presence of such regulatory risks. Series: Topics in Regulatory Economics and Policy. Num Pages: 345 pages, biography. BIC Classification: KJU; KN. Category: (P) Professional & Vocational; (UP) Postgraduate, Research & Scholarly. Dimension: 234 x 156 x 20. Weight in Grams: 686. . 1993. Hardback. . . . . Books ship from the US and Ireland.

Seller Inventory # V9780792393306

Bibliographic Details

• Title: Regulatory Risk
• Publisher: Kluwer Academic Publishers
• Publication Date: 1993
• Language: English
• ISBN 10: 0792393309
• ISBN 13: 9780792393306
• Binding: Hardcover
• Condition: New

About this title

Synopsis

It is common to assert that utility investors are compensated in the allowed rate of return for the risk of large disallowances, such as arise for investments found imprudent or not `used and useful'. However, this book develops a new theory of asymmetric regulatory risk that shows that infallible estimates of the cost of capital are sure to provide downward-biased estimates of the necessary allowed rates of return in the presence of such regulatory risks. The book uses the new theory of regulatory risk to understand recent developments in the risk of natural gas pipelines and other regulated industries.