0.49 Authors suggest that estimate has Hathaway and Officer (2004) (1986–2004) increased post-2000. 0.36 Bellamy and Gray (2004) Range of 0.0–0.60 is also presented. (1995–2002) 0.69 Also present an earlier period Bruckner et al (1994) (1991–1993) 0.80 and Clarke (1993) (1988–1991) Source: As specified in table. As is evident in the table above, dividend drop off studies suggest that the utilisation value is in the range of 0.35 to 0.57 when using post 2000 data and is in the range of 0.2 to 0.8 when using pre 2000 data. This is consistent with the finding in Ainsworth, Partington and Warren (2015) which considers that the dividend drop-off and comparative pricing studies they examine would suggest that imputation credits are partially priced at about $0.38 in the dollar. Table 418 Estimates of the utilisation rate from alternative market value studies Pre-2000 Post-2000 Authors Notes results results Dividend drop off using hybrids N/A Combined drop off of 1.0. With dividends at Feuerherdt, Gray and Hall (2010) (1995–2002) full value, this is a utilisation rate of 0. Futures study (individual or index) 0.12 SFG (2013b) Uses individual firms. (2000–2013) 0–0.15 Cannavan et al (2004) Uses individual firms. (1994–1999) 0.52 Cummings and Frino (2008) Uses index. (2002–2005) Rate of return -1.57 -1.90 Uses past returns. For the entire period, NERA (2013b) (1987–2000) (2000–2012) estimate is -1.50. -1.57 -1.68 Uses past returns. For the entire period, Lajbcygier and Wheatley (2012) (1987–2000) (2000–2009) estimate is -1.88
Hathaway and Officer (2004) 0.49 (1986–2004) Authors suggest that estimate has increased post-2000. Bellamy and Gray (2004) 0.36 (1995–2002) Range of 0.0–0.60 is also presented. Bruckner et al (1994) 0.69 (1991–1993) Also present an earlier period and Clarke (1993) 0.80 (1988–1991) Source: As specified in table. As is evident in the table above, dividend drop off studies suggest that the utilisation value is in the range of 0.35 to 0.57 when using post 2000 data and is in the range of 0.2 to 0.8 when using pre 2000 data. This is consistent with the finding in Ainsworth, Partington and Warren (2015) which considers that the dividend drop-off and comparative pricing studies they examine would suggest that imputation credits are partially priced at about $0.38 in the dollar. Table 418 Estimates of the utilisation rate from alternative market value studies Authors Pre-2000 results Post-2000 results Notes Dividend drop off using hybrids Feuerherdt, Gray and Hall (2010) N/A (1995–2002) Combined drop off of 1.0. With dividends at full value, this is a utilisation rate of 0. Futures study (individual or index) SFG (2013b) 0.12 (2000–2013) Uses individual firms. Cannavan et al (2004) 0–0.15 (1994–1999) Uses individual firms. Cummings and Frino (2008) 0.52 (2002–2005) Uses index. Rate of return NERA (2013b) -1.57 (1987–2000) -1.90 (2000–2012) Uses past returns. For the entire period, estimate is -1.50. Lajbcygier and Wheatley (2012) -1.57 (1987–2000) -1.68 (2000–2009) Uses past returns. For the entire period, estimate is -1.88
AER%20-%20Final%20decision%20ActewAGL%20Distribution%20Access%20Arrangement%20-%20Attachment%204%20-%20Value%20of%20imputation%20credits%20-%20May%202016.DOCX