COWLES FOUNDATION FOR RESEARCH IN
ECONOMICS Box 208281
COWLES FOUNDATION DISCUSSION PAPER NO. 1863 The Financing of a Public Utility Eric Smith and Martin Shubik June 2012 The interaction of capital stock with overlapping generations is
investigated where the time structures of human capital and other physical capital does
not match. We consider the economies with either gold or fiat as the outside money and
consider the financing problems that appear in the financing of capital stock. The
complexity of the underlying physical structure combined with concern for efficiency and
equity help to determine the financial structure. |
