The Financing of a Public Utility
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.
Smith, Eric and Shubik, Martin, "The Financing of a Public Utility" (2012). Cowles Foundation Discussion Papers. 2224.