Understanding Railroad Investment Behaviors, Regulatory Processes, and Related Implications for Efficient Industry Oversight
| Autor: | Charles Sims, Mark L. Burton |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Strategy and Management 05 social sciences ComputerApplications_COMPUTERSINOTHERSYSTEMS Investment (macroeconomics) Capital expenditure Work (electrical) Cost of capital Management of Technology and Innovation Capital (economics) 0502 economics and business Economics Revenue 050207 economics Industrial organization Sunk costs 050205 econometrics |
| Zdroj: | Review of Industrial Organization. 49:263-288 |
| ISSN: | 1573-7160 0889-938X |
| DOI: | 10.1007/s11151-016-9519-y |
| Popis: | Current Surface Transportation Board methods rely on comparisons between revenue needs and the revenues that are earned by railroads. This paper reconsiders the methods that are used to determine this “revenue adequacy”. Specifically, we consider whether the cost of railroad capital might be better estimated through methods that incorporate a “real-options” perspective. While not definitive, our current work suggests that the irreversible nature of many railroad capital expenditures supports a real-options approach and that such an approach could potentially improve assessments of railroad cost of capital. Further, we conclude that applying a real-options methodology also can measurably improve policy-makers’ broader understanding of when, where, and how railroads choose to create new freight capacity. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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