Abstract

In this paper we have utilized a two-sector, two-factor general equilibrium model of production to analyze the implications of the fair-rate of return regulation for resource allocation as well as real factor rewards. Our main conclusion is that regulation in one sector has an effect on factor rewards and resource allocation in the entire economy.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.