It is frequently asserted that changes in regulatory practice during the 1980s, e.g. the refusal to allow utilities full cost recovery for expensive nuclear power plants, have undermined incentives for investment by electric utilities. We offer the first empirical test of this proposition, by...

Our analysis shows that Pareto's instincts were right, for under certain assumptions, personal distributions of income tend to be similar even when the underlying functional determinants are quite different. We prove that if the initial functional income distribution is sufficiently "compact" -...