Valore del capitale e regolamentazione incentivante: una nota

The assessment of the value of capital performs an essential function in incentive regulation; at the same time, it involves considerable uncertainties and intricacies. The article discusses the three main available alternatives, i.e. historical (accounting) value, market value, and substitution value. A preference is expressed in favour of the last alternative -- as the alternative which embodies a concept of capital in line with the economic logic of regulation, and is also largely isolated by the problem of circularity between value of capital and level of profitability.