CFDP 1863

The Financing of a Public Utility


Publication Date: June 2012

Pages: 83


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.


Capital stock, Time scales, Fiat, Gold, Joint product

JEL Classification Codes:  C73, D24, E22, E41