Brattle Economists Author Risk And Return For Regulated Industries

Brattle Principals Bente Villadsen, Michael Vilbert, and Dan Harris, and Principal Emeritus A. Lawrence Kolbe have authored a new book that examines the topic of cost of capital for regulated industries.

Risk and Return for Regulated Industries, published by Elsevier, establishes the principles and procedures for determining the fair rate of return on capital investment. Drawing on lessons learned from North America, Europe, Australia, and New Zealand, the book reviews the fundamental issues regarding capital structure, rate base estimation, asymmetric risk, and risk sharing in the terms of utility cost recovery, and factors that impact the accuracy of cost of capital estimates.