Litzenberger, Robert H.; Rao, Cherukuri U. - In: Bell Journal of Economics 2 (1971) 1, pp. 265-277
This paper develops an econometric model of the valuation of electric utility shares. This model, based upon the Sharpe-Lintner capital market theory, yields indirect estimates of the marginal rate of time preference and average risk aversion of investors in electric utility shares during the...