and elsewhere, whose optimality cannot be proved or that have even been shown to be suboptimal. The question is an open one which calls for additional research.

Regarding the second question, Massy (2012) has proposed a modification to Equation (3) to achieve optimality in the nonprofit case. Still, additional research will be needed to determine how the required new parameters can be estimated and to identify the conditions under which the new model produces results that differ materially from the traditional one. The question of material differences will, in turn, shed light on the answer to question (1).



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