Publication
2004
This paper examines the regulation of the electricity generation sub-sector in the Philippines. The authors explore whether the pricing method, known as the rate-of-return (ROR) regulation, gives incentive for firms to 'overcapitalize.' They test the Averch-Johnson hypothesis by observing the input prices and the marginal products of a regulated firm. The results confirm the existence of overcapitalization in all plants in the sample.
Download |
English (PDF, 39 pages, 1.0 MB) |
---|---|
Author | Rouselle Lavado, Changchun Hua |
Series | East-West Center Working Papers |
Issue | 7 |
Publisher | East-West Center (EWC) |
Copyright | © 2004 East-West Center (EWC) |