Comparative Statics of a Monopolistic Firm Facing Rate-of-Return and Command-and-Control Pollution Constraints
The intrinsic comparative statics properties of a general rate-of-return regulated, profitmaximizing model of a monopolist facing a command-and-control pollution constraint are derived. Recent advances in the theory of comparative statics are used to derive the basic comparative statics of the model, which are contained in an observable negative semidefinite matrix and possess the form of Slutsky-like expressions. We consider several command-and-control pollution constraints that are commonly implemented in practice, and conclude that the intrinsic comparative statics properties of the model are qualitatively invariant to the type of command-andcontrol pollution constraint imposed. We compare our results with those extant, and find that several basic results from the standard A-J model no longer hold in our model.
|Date of creation:||Apr 2010|
|Date of revision:||Jun 2012|
|Contact details of provider:|| Postal: PO Box 161400, Orlando, FL 32816|
Phone: (407) 823-3266
Web page: http://business.ucf.edu/degree/bachelors-sciences-business-administration/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helfand, Gloria E, 1991. "Standards versus Standards: The Effects of Different Pollution Restrictions," American Economic Review, American Economic Association, vol. 81(3), pages 622-634, June.
- Michael R. Caputo & M. Hossein Partovi, 2008. "Intrinsic comparative statics of a general class of profit-maximizing rate-of-return regulated firms," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 369-382, April.
- M. Hossein Partovi & Michael R. Caputo, 2006. "A Complete Theory Of Comparative Statics For Differentiable Optimization Problems," Metroeconomica, Wiley Blackwell, vol. 57(1), pages 31-67, 02.
When requesting a correction, please mention this item's handle: RePEc:cfl:wpaper:2010-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Paul)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.