SOME EFFECTS OF INFLATION ON A FIRM WITH ORIGINAL COST DEPRECIATION.

Joel L. Lebowitz, Chong Ouk Lee, Peter B. Linhart

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

The authors examine, in a simplified model without uncertainty, the response of a regulated firm to inflation in the cost of capital equipment. This model firm is assumed to be constrained to meet a given demand schedule, and to realize a prescribed rate of return on capital; the firm's revenue requirements include depreciation based on original cost.

Original languageEnglish (US)
Pages (from-to)463-477
Number of pages15
JournalBell J Econ
Volume7
Issue number2
StatePublished - Jan 1 1976
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Engineering(all)

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