Capital waste in the rate-of-return regu
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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