The Setting of Allowed Rates of Return for Public Utilities
The Setting of Allowed Rates of Return for Public Utilities
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In our eReader you can find the full English version of the book. Read The Setting of Allowed Rates of Return for Public Utilities Online - link to read the book on full screen. Our eReader also allows you to upload and read Pdf, Txt, ePub and fb2 books. In the Mini eReder on the page below you can quickly view all pages of the book - Read Book The Setting of Allowed Rates of Return for Public Utilities
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This was used on the presumption that the basic rate o might vary with size. /l?/. The form to be tested now becomes: Rj^ = a^ + a^(Aj^/lO ) + a2(r^-r)dj^ + a^(s^-s)p^ + v^^ (8) The two alternative hypotheses are: I . R^ = p + e. II. R^ = o + (r^-r)dj^ + (s^-s)pj^ + u^ If (I) is true a and a will tend to zero. If (II) holds they will tend to 1 .
There remains one problem with (8). Estimates of r and s must be devised. I't must be remembered that these are borrowing costs considered 'normal' by ...commissions. They might correspond in fact to their subjective estimates which we have no way to measure. Thus it is necessary to discuss the effects of error in our estimates of these rates. For simplicity we can abstract from the T)ref erred term for the moment. Let us suppose that the 18 true 'normal' rate Is r' and that our estimate of It is r, where r=r'+li, h>0. Then the true relationship is: E^ = Bq + ... + a2ir^-^*)6.^ + Uj^ This can be rewritten as : Rj^ = a^ +... + agCr^-r' )d^j^ + a^hd^^ + u^ (9) If we run the regression with r the tfirrn ag, hdj^ in (9) will behave as an omitted variable.
What to read after The Setting of Allowed Rates of Return for Public Utilities?
You can find similar books in the "Read Also" column, or choose other free books by Stauros Thomadakes to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
This was used on the presumption that the basic rate o might vary with size. /l?/. The form to be tested now becomes: Rj^ = a^ + a^(Aj^/lO ) + a2(r^-r)dj^ + a^(s^-s)p^ + v^^ (8) The two alternative hypotheses are: I . R^ = p + e. II. R^ = o + (r^-r)dj^ + (s^-s)pj^ + u^ If (I) is true a and a will tend to zero. If (II) holds they will tend to 1 .
There remains one problem with (8). Estimates of r and s must be devised. I't must be remembered that these are borrowing costs considered 'normal' by ...commissions. They might correspond in fact to their subjective estimates which we have no way to measure. Thus it is necessary to discuss the effects of error in our estimates of these rates. For simplicity we can abstract from the T)ref erred term for the moment. Let us suppose that the 18 true 'normal' rate Is r' and that our estimate of It is r, where r=r'+li, h>0. Then the true relationship is: E^ = Bq + ... + a2ir^-^*)6.^ + Uj^ This can be rewritten as : Rj^ = a^ +... + agCr^-r' )d^j^ + a^hd^^ + u^ (9) If we run the regression with r the tfirrn ag, hdj^ in (9) will behave as an omitted variable.
What to read after The Setting of Allowed Rates of Return for Public Utilities?
You can find similar books in the "Read Also" column, or choose other free books by Stauros Thomadakes to read onlineMoreLess
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