Optimal investment policy of the regulated firm (Q1124515)
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scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Optimal investment policy of the regulated firm |
scientific article |
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Optimal investment policy of the regulated firm (English)
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1989
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The purpose of the paper is to investigate the optimal investment behaviour of a regulated firm and to show that the so-called Averch- Johnson effect does not necessarily exist in a dynamic model of a profit maximizing firm when its revenue function is concave. A great deal of the paper concerns an analysis of 3 types of solutions of the model presented therein in the cases of undercapitalization, overcapitalization and neutralization.
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optimal employment
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optimal investment
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regulated firm
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