caa a22 4500 469075805 CHVBK 20180323132934.0 cr unu---uuuuu 170328e19920301xx s 000 0 eng 10.1007/BF00134217 doi (NATIONALLICENCE)springer-10.1007/BF00134217 Optimal depreciation, payments to capital, and natural monopoly regulation [Elektronische Daten] [H. Stuart Burness, Robert Patrick] This paper examines optimal recovery of capital costs by the profit- maximizing firm operating under a rate-of-return constraint and for the regulator's problem of welfare maximization such that revenues are sufficient to cover economic costs. In this regard, we examine optimal depreciation schedules and time horizons for recovery, as well as the effects of stationary and nonstationary demand and cost conditions and a profit tax on the recovery paths. For the regulated firm seeking profits, once recovery begins, it continues at the most rapid rate until full recovery of costs occurs. In terms of the welfare objective, the regulator is required to commit to full recovery over a finite time period. For both the profit and welfare objectives, the optimal recovery requires "backloading” under a broad set of conditions (recovery increases through time, a practice that is contrary to extant rules). Kluwer Academic Publishers, 1992 Stuart Burness H. Department of Economics, University of New Mexico, 87131, Albuquerque, NM aut Patrick Robert Department of Mineral Economics, Colorado School of Mines, 80401, Golden, CO aut Journal of Regulatory Economics Kluwer Academic Publishers 4/1(1992-03-01), 35-50 0922-680X 4:1<35 1992 4 11149 https://doi.org/10.1007/BF00134217 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00134217 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Stuart Burness H. Department of Economics, University of New Mexico, 87131, Albuquerque, NM aut NATIONALLICENCE 700 1- Patrick Robert Department of Mineral Economics, Colorado School of Mines, 80401, Golden, CO aut NATIONALLICENCE 773 0- Journal of Regulatory Economics Kluwer Academic Publishers 4/1(1992-03-01), 35-50 0922-680X 4:1<35 1992 4 11149 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer