Questions tagged [value]
The value tag has no usage guidance.
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What does the price of bitcoin per ounce of gold tell us?
For example, see the below graph from https://charts.woobull.com/bitcoin-vs-gold/
It seems that intention is to isolate the effect of US dollar when assessing bitcoin's value, e.g. BTC quoted in US ...
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1answer
63 views
How is value determined?
If I create a new currency (perhaps a cryptocurrency) and I wanted it to be the only currency usable to purchase an item/service, how would I determine the price of that service? I would think that it ...
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1answer
33 views
Intuition behind value added as TFP measure
In some papers the authors use value-added over capital and labor as TFP measure, what is the intuition behind this?
For example, in one paper I just read the authors use
$ \frac{VA}{(p_{K}K + p_{L}L)}...
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1answer
29 views
Is it possible for a coin / token to act as long-term store of value and money at the same time?
I have recently watched a discussion about Bitcoin and its usage and one person argued that Bitcoin is a good way
I will make the question as focused as possible by narrowing the terms:
store of ...
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1answer
33 views
Irreversibility in the Creation of Value
In his book The Origin of Wealth, Eric D. Beinhocker says that
A pattern of matter, energy, and/or information has economic value if the following three conditions are jointly met:
Irreversibility: ...
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30 views
How to adjust for risk when determining the price of a security?
When valuing a security future cash flows are discounted to present value. This is for two reasons:
You are giving up cash which could have earned certain returns (in government bonds or similar)
...
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34 views
What's the name of this particular economics phenomenon (loss and increase of value over many years)?
I have almost no knowledge of economics so I decided to ask you here. Sorry for tags but I didn't have any idea what should I use.
Some things loss its value due to quality and functionality increase. ...
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1answer
36 views
Price/value with and without consideration of resale
When thinking about various economic phenomena I have often found it useful to separate out the value of an item purely for its own sake from the value when you also consider the fact that you may ...
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1answer
46 views
Is M&A valuation a good proxy for company fair value?
I'm building a model for estimating a fair value of a company. Naturally I'd like to see if model's predicative capabilities are any good.
Would using a value of a friendly M&A deal be a good ...
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27 views
Solving for parameter value
I have the following maximization function -
$\max_{x \in (0,1)} (((p_1e_1x^2)^{r} + (p_2e_2(1-x)^2)^{r})/2)^{1/r}$
where, $p_1$ and $p_2$ are drawn from uniform distribution [0,1] and are considered ...
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1answer
24 views
is it better a low or high WACC for a company valuation?
I'm doing a statistical report of some italian banks and I'm looking for correlation between Corporate governance practices and bank values. I'm focusing on WACC and I would like to understand if an ...
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38 views
Are there multilevel marketing companies that aren't pyramid schemes?
I've been doing lots of research on pyramid schemes, and the rebranding and institutionalization of the industry in the 1980s with trade groups, heavy investment in politics, etc.
The term "...
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1answer
40 views
Is the value of a product measured in money a reliable measure of the economic value of this product?
This could rather be a philosophical question but would be curious to know the economist's POV and how these two (value of the product, total economic value of the product) correlate.
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1answer
32 views
Equity value vs Stockholders Equity
Is equity value is the same as stockholders equity? I have been given liabilities and stockholders equity total also and I need to calculate the leverage ratio, but I not sure what numbers should I ...
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1answer
213 views
Can machines create value?
Marx wrote that only humans can create value. But why is that so? Ok humans can, with their work, create more value than they need to consume in food and so on, that's obvious. But why is this so ...
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1answer
38 views
How much is currently invested in artificial general intelligence research and development?
Glossary: Artificial general intelligence (AGI) is the name given to an upcoming technology that would be able to solve all sorts of problems, like a human, and unlike more specialized existing ...
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2answers
374 views
What's a "correct price" really? Does it exist?
Lately I've been thinking about the concept of price setting in market economy. There are various (perhaps naive) view on this such as:
The price is always the optimal for the buyer and the seller.
...
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5answers
863 views
Why does fiat money have value?
Or as Tobin (1992) put it: "How Can Money Have Positive Value in Exchange?"
Money, however, is an embarrassment to value theory. According to standard theory, something can have positive ...
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1answer
56 views
What was the "invariable measure of value" problem and how did Sraffa solve it?
Fonseca (HET Website) writes:
Only much later did Piero Sraffa (1960) finally solve the "invariable measure of value" problem and re-ignited interest in Ricardo's theory.
What was the &...
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1answer
59 views
Value of money (incomes) question - what is the "r" here?
I would like some help with a fairly basic "value of money" question. (I'm very much a beginner in this field so please bear with me.)
I'm writing about income changes throughout a decade (2010-2019)....
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1answer
25 views
Market Cap ranges for Tech Companies
I'm trying to get an idea of how big tech companies are based off market cap. This is not my typical field of expertise, so please pardon me if I say something naive.
I've found this site (https://...
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4answers
106 views
What is the difference between microeconomics money and macroeconomics money?
In microeconomics, \$USD are a store of value. I can sell a candy bar for \$1, and I can hang onto that \$1 for a year and then buy the same candy bar for that same \$1. If I print \$1 (and get away ...
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1answer
25 views
Renewal of multiple notions of value in contemporary (green, public good) economy and are there general game theories?
https://en.wikipedia.org/wiki/Exchange_value mentions 4 notions of value: economic value, exchange value, use value, price. But this article also mentions that these are Marxian concepts and the ...
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2answers
694 views
EMH: Difference between market price and fundamental value?
I am confused by the relation between stocks market prices and fundamental (or intrinsic) values stated by Efficient Market Hypothesis. How these deviates regarding to efficient market theory or are ...
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1answer
72 views
Who is Butler in Marx' footnote in Das Kapital?
In footnote [7] of Marx's Capital, T.I, Ch. 1, Sec 1, after ...contradictio in adjecto, there are these quotes: «Nothing can have an intrinsick value.» (N. Barbon, t. c., p. 6); or as Butler says - «...
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1answer
212 views
Tendency of the rate of profit to fall
https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit_to_fall
The tendency of the rate of profit to fall (TRPF) is a hypothesis in economics and political economy, most famously expounded by ...
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1answer
91 views
Why's it always better to choose a lump sum than periodic payments over time?
Gill, Madura. Personal Finance, 4th Canadian Edition 2019. p. 56.
True or False? It is always better to choose a lump sum than periodic payments over time.
p. 519
T
Doesn't the ...
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1answer
36 views
Why the source profit is not only trade markups?
I'm researching the source of profit. In Marx I've found the following passage:
If then, speaking broadly, and embracing somewhat longer periods, all
descriptions of commodities sell at their ...
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1answer
29 views
Is the Paradox of Value relevant to the value of labour?
I trust we're all familiar with the Paradox of Value -- that queer state of affairs in which diamonds, which are not good for anything, are very expensive, while water, which we all need to not die, ...
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2answers
106 views
Value of Currency Itself
What is the value of an individual piece of currency itself based on the efficiencies it allows in trade, in contrast to the value it represents?
For example, people often talk (complain) about the ...
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1answer
24 views
Gapminder's Dollar Street and the role of self-supply
I find it quite hard to get a clear picture of what the income numbers in Gapminder's Dollar Street tell. How to compare \$27 in Burundi with \$10,098 in China? What would it mean that the family in ...
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1answer
38 views
How does the notion of utility differ from that of value?
Is utility merely the notion of value in the subjectivist/marginalist (aka neoclassical) school?
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169 views
What percentage pass-through effect do VAT taxes have?
From what I can find on Google Scholar it looks like there is a pass-through effect of approximately 1/3 the amount of a Value Added Tax - with the exception of food production, which trends higher - ...
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0answers
19 views
How much precious metals prices come from their use as investement vs practical use
Some precious metal price come almost exclusively from their value as an investement, as gold, while some others like palladium or osmium have important uses in industries. But lately those metals ...
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1answer
74 views
Why doesn't land value go to 0 when tax rate goes to 100%?
I'm looking at this equation here:
$$y = \frac{ra}{r+x}$$
Where:
$y$ = market value of land
$r$ = real interest rate, set at 0.01
$a$ = land value, set at 1
$x$ = tax rate
I don't really ...
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1answer
27 views
What is value in the context of microeconomic analys for case of monopoly profit maximization
I'm trying to refresh my microeconomics knowledge. And I have some "blind spots" I just can't fix.
Let's say we have a monopoly on the market. It's usual goal is to maximize it's profits. The point ...
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1answer
332 views
What am I doing wrong in the derivation of Bass diffusion model?
I've been deriving Bass diffusion model and keep consistently finding a different result than Bass' original answer. To make things worse, every single link in the Google results page just copies the ...
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2answers
48 views
Why are future expenses considered less costly than expenses in the present?
I understand that future income is less valuable than income in the present because of the concept of present value, where money available today can be invested to earn interest or can be spent to ...
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2answers
53 views
What are the drivers of the price of land?
I'm interested in what factors lead to changes in the price of land. I'm interested in this question in general across a whole country, say (as opposed to land in particular places).
So I'm ...
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1answer
127 views
How can you model/simulate the price/value of a good?
Let's say that you have a good which price can change quite often because of its demand. Let's assume that you developed an algorithm that changes continuously the supply of the good to make its value ...
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140 views
Does accumulation of fiat currency cause instability?
If the value of fiat currency is a function of the supply of money and it's velocity, is the accumulation of that currency detrimental to its stability?
I may be wrong in my understanding of the ...
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1answer
235 views
How much is an asset worth that produces a constant income?
Say you have an asset that produces for you £1k per year profit (adjusted for inflation) at a constant rate? (The proverbial immortal goose that lays golden eggs).
Logic would say it's potential is ...
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1answer
17 views
How startup early valuation influence later funding stages?
Let's suppose that a startup raise his seed round with a 100k funding for 10% equity. The startup has a pre-money valuation of 1M.
Let's say that the startup, after 1 year, raise a Series A round. ...
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1answer
90 views
Subjective theory of value applied to gross domestic product
I am trying to understand the subjective theory of value and run into some considerations that make me think I got it wrong.
As far as I understand, the subjective theory of value states that the ...
0
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1answer
65 views
Value of Statistical Life and Risk
I have been reading a paper by Bove & Elia (2011), where they quote a definition of the value of statistical life from Bellavance, Dionne & Lebeau (2009). I have tried making my peace with the ...
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41 views
Economic valuation of green spaces using GIS
I was wondering if there are any standard methods that are employed to obtain insight of the economic value of tree cover in a particular area. I assumed using negative difference vegetation index ...
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1answer
49 views
Alternative measure for market capitalization, company "value"
I wonder what the term "value" of a company, currency, etc could mean. The most obvious, to me, is market capitalization (related: Clarifying the meaning of market capitalization)
Is there also ...
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23 views
Best texts on cash usage and share buybacks in companies
What would be a good reference for how companies utilise their cash to conduct share buybacks. I am trying to understand how share buybacks affect the valuation of a company.
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2answers
173 views
GDP simple question got me confused: the sale of a capital asset
a) Delta Air Lines buys a new jet from Boeing for 200 million dollars.
b) Delta Air Lines sells **one of its jets to Kim Kardashian for 100 million dollars.
So..
a) $200 million investment, ...
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1answer
3k views
Today's value of the Louisiana Purchase?
A video I watched claimed (at 6:50) that while only \$0.25B had been paid for the Louisiana Purchase, the current value was \$1200B (all in 2017 dollars).
I couldn't find any references, but assuming ...
