𝔖 Bobbio Scriptorium
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The rate of return regulated version of Farrell efficiency

✍ Scribed by Rolf Färe; James Logan


Publisher
Elsevier Science
Year
1992
Tongue
English
Weight
372 KB
Volume
27
Category
Article
ISSN
0925-5273

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Capital waste in the rate-of-return regu
✍ Roger Sherman 📂 Article 📅 1992 🏛 Springer US 🌐 English ⚖ 486 KB

Here it is shown how capital waste can be motivated under rate-of-return regulation, even when the marginal product of capital is positive. This result means that the sign of the marginal product of capital is not adequate as a basis for defining waste. The wasteful use of capital is motivated to av