Optimal depreciation schedules for regulated utilities

Optimal Schedules for LandingAircraftJ

In this paper we describe two approaches for solving the problem of scheduling aircraft landing times. In this problem, the air traac controller must compute a landing time for each aircraft in the horizon, and must attempt to minimise costs whilst observing a number of hard constraints. The costs are associated with aircraft landing times varying from the preferred landing time. The hard const...

Cooling Schedules for Optimal Annealing

A Monte Carlo c^timization technique called "simulated annealing" is a descent algorithm modified by random ascent moves in order to escape local minima which are not global minima. Tlie levd of randomization is determined by a control parameter T, called temperature, which tends to zero according to a deterministic "cooling schedule". We give a simple necessary and suffident conditicm on the c...

Optimal Dynamic Investment Policy under Different Rates for Tax Depreciation and Economic Depreciation

This paper analyzes the consequences of incorporating a different rate for tax depreciation than for economic depreciation. Firms most often choose their tax depreciation rate in a strategic way. It would therefore be a coincidence if this optimization process leads to a tax depreciation rate that equals the economic depreciation rate. The implications of a difference between tax depreciation a...

Methods of Estimating Depreciation in Valuation of Public Utilities for Rate Making Purposes

Optimal tax depreciation with losses carried forward

The choice of depreciation method from among straight-line and accelerated methods can have a significant impact on the present value of expected tax payments. This is a problem that has been studied for decades, with most results indicating the optimality of accelerated methods. Recent research has begun to question this claim by relaxing one of the original assumptions ofpositive taxable inco...