Price Cap Regulation and Productivity Growth
This article by Jeffrey I. Bernstein of Carleton University and the NBER discusses the use of total factor productivity for price setting in regulated industries. He argues that the longterm, industry-wide productivity experience that is not subject to strategic manipulation by regulated firms should be the productivity growth rate used to develop the appropriate offset factor for price cap regulation.
Volume (Year): 1 (2000)
Issue (Month): (Fall)
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