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Franklin D. Roosevelt, Electric Utilities, and the Power of Competition

Published online by Cambridge University Press:  03 March 2009

William M. Emmons III
William M. Emmons III
Affiliation:
Assistant Professor of Business Administration, Harvard University Graduate School of Business Administration, Boston, MA 02163.
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Abstract

Historical verdicts on the economic effects of Franklin D. Roosevelt's New Deal have been decidedly mixed. This article examines the New Deal's impact on the electric utility industry. In contrast to Roosevelt's cartel-like policies toward other sectors, his approach to the electric utilities involved the infusion of various forms of direct and indirect competition. Statistical evidence and econometric analysis suggest that Roosevelt's procompetitive strategy produced superior outcomes relative to traditional “natural monopoly” approaches to electric utility regulation.

Type
Articles
Information
The Journal of Economic History , Volume 53 , Issue 4 , December 1993 , pp. 880 - 907
Copyright
Copyright © The Economic History Association 1993

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