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

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

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

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

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	463-477
Number of pages	15
Journal	Bell J Econ
Volume	7
Issue number	2
State	Published - Jan 1 1976
Externally published	Yes

All Science Journal Classification (ASJC) codes

Engineering(all)

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title = "SOME EFFECTS OF INFLATION ON A FIRM WITH ORIGINAL COST DEPRECIATION.",

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.",

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AB - 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.

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