ABSTRACT:Mercer and Morgan provide several valid criticisms of a previous analysis on political influence and water rates. More sophisticated statistical analyses may be justified given the high degree of interdependence among regulated firm variables. Theoretically, there are numerous measures of political activity superior to the one employed in the original analysis; however, data unavailability precludes their use. A better (and yet practical) measure of consumer leverage may be relative dominance by a specific political party. Until relatively easy access is obtained to municipal election data, the possible political variables that can be employed in more elegant analyses are few in number, and each has theoretical limitations.
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