Assessment Journal
Keywords
Obsolescence, Gas Industry, Valuation of public utilities
Abstract
This paper defines and discusses the general challenges of measuring obsolescence in property appraisal and briefly reviews past attempts to estimate obsolescence in cost-regulated industries by using performance comparisons. An improved method of measuring obsolescence would reduce disagreements over valuation of cost-regulated industries. The method proposed here uses data envelopment analysis and is illustrated by an analysis of gas pipeline firms.
Recommended Citation
Walters, Lawrence C.; Cornia, Gary C.; Shank, David W.; Gerschefske, Charles; Ulrich, Kenneth C.; and Freeman, Mark
(1994)
"Measuring obsolescence in regulated firms: Enhancements to the cost approach,"
Assessment Journal: Vol. 1:
No.
3, Article 5.
Available at:
https://researchexchange.iaao.org/assessment_journal/vol1/iss3/5
