Questions tagged [value]
The value tag has no usage guidance.
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What are the definitions of the terms value, wealth, and utility in economics?
Are there any definitions for the following three terms that are widely agreed upon in economics?
Value
Wealth
Utility
In particular, are these terms identical? If not, what differentiates them?
I ...
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0answers
14 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
38 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
15 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 ...
2
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1answer
56 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
40 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
43 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
40 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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0answers
74 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 ...
3
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1answer
225 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
8 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
59 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 ...
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1answer
28 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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0answers
36 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
18 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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0answers
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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1answer
50 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 ...
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1answer
86 views
Value function iterations with hyperbolic discounting
I am currently working to the numerical solution of a model similar to the consumption-savings decision model with hyperbolic discounting as in Krussel et al. (2003).
Even if hyperbolic discounting ...
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3answers
1k views
Can the stock market show indefinite exponential growth?
In a comments on a question on money.SE, the following dialog took place:
Eventually there will not be enough matter to represent all the money, so we know for certain that the answer is "No" for a ...
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2answers
61 views
Reductionism, value and market economics
If I'm not mistaken, the economic value provided by a business entity to the community is just one kind of value. We tend to put numbers to things such as stock price, revenue, profits and so on. ...
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2answers
81 views
What gives value to precious, luxury things?
What makes things precious? For example Gold, Silver, Diamonds, etc. Once they were unknown to human being. And now they are the more pricey things.
I guess its just the way these things were ...
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0answers
28 views
How to estimate signifcance of price difference?
I am trying to estimate how significant is a difference between two prices.
Preface
It seems to not be percentage, as price difference of \$0.10 vs \$0.09 wouldn't make me go for the cheaper shop ...
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3answers
98 views
How can you know which is the “current dollar value” of a dollar value from another decade?
Is there a mathematical ecuation or some method, which allows you to have the "current dollar value" of an amount dollar from other year, let's say, decades ago? For example, it's said that the ...
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1answer
2k views
Converting current to constant USD values for trade data (UN Comtrade)
I am using WB (country GDP) data in combination with UN Comtrade (bilateral trade) data. I need to divide bilateral trade by GDP so as to find out which % of a country's GDP comes from bilateral trade....
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2answers
375 views
Do contemporary Marxist economists still deny the utility/value theory which underpins classical economics?
Do contemporary Marxist economists still apply the labor theory of value when analysing economic phenomena? Or do they e.g. acknowledge that value (and utility) is subjective as is common knowledge in ...
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2answers
236 views
Research Design: Indifference curves and budget lines
I have a basic Idea on how to construct indifference curves such that we must use two goods and then ask for pairs of bundles which are preference indifferent.
When doing applied research on ...
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2answers
982 views
What is the value of something?
What is the worth of something?
I was thinking that it is either how much someone is willing to pay, or is it how much someone is willing to sell it for? Or is it the point where those two meet?
...
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1answer
53 views
Factoring Technology into Economics models
There has been tremendous improvement in technologies in recent years. My question is: have economists been able to properly evaluate and factor the values of recent innovations in the technology ...
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1answer
40 views
Is there another name for marginal luxury?
My coworkers and I were talking about the concept of voluntarily paying more than you need to for something. As an example, I can buy a locally grown organic apple from the farmers market for \$3 or a ...
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1answer
171 views
How can 1 BTC gain value in USD if inflation is happening?
So, right now, 1 BTC (bitcoin) is worth ≈ 578.25 USD. But, with the inflation of the USD, how can 1 BTC still hold its value at 578.25? Why doesn't it decrease?
Let's set this example:
1 BTC = 1 USD....
8
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1answer
185 views
On the Ms. Exponential vs Ms. Hyperbolic vignette
I've come across this little parable purporting to show why exponential discounting is superior to hyperbolic discounting1:
The greater bowing [of the hyperbolic discount curve] means that if a ...
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0answers
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How widespread is the subjective theory of value ?
I typically see the subjective theory of value supported by pro-free market type individuals. But in the present day what theory of value is used for other schools of thought that favor things such as ...
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1answer
558 views
What is the wealth of a company?
I would like to better understand what is the wealth of a company and what is made of.
Is the wealth of a company similar to GDP of country, like a "gross company product" ?
As example: can we say ...
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1answer
62 views
Gold and loss of faith in central banking
In this article here, http://www.telegraph.co.uk/investing/gold/gold-resurgence-whos-buying-gold-and-why/ , it states that "gold tends to do....best when markets lose faith in central banking".
I ...
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1answer
127 views
Is it correct to say that wealth is “destroyed” when an asset bubble bursts?
I was reading this article from the World Economic Forum, when I came across this passage:
When the global equity and real estate markets hit their lowest points in March 2009, \$34.4 trillion of ...
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1answer
98 views
How to calculate change in GDP using valued added?
Suppose that Roots buys 5 million dollars in leather produced this year in Alberta and 1 million dollars in zippers produced last year in Toronto to make 9 million dollars worth of leather jackets in ...
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1answer
33 views
How to define best value?
I'm trying to define which hotel offers the best value.
Let's say we have two hotels - A and B.
For A, you pay $10 a night and the rating for the hotel is 9.8.
For B, you pay $8 a night and the ...
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4answers
279 views
Why is Uber worth almost as much as Boeing?
At $68 billion, Uber has a higher valuation than GM, Ford, and Honda.
According to Microaxis, Boeing is currently valued at around $87 billion.
Why is Uber worth so much? I would think that ...
3
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4answers
138 views
In this scenario, which coin is more valuable?
There are two coins, Coin A and Coin B. You can transfer Coin A for Coin B or Coin B for Coin A only in the two following ways:
Give 100 Coin A for 10 Coin B
Or
Give 10 Coin B for 50 Coin A
In ...
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2answers
5k views
What is the difference between shareholder's equity, equity, and book value?
I have been doing some reading and I have found that shareholder's equity is equal to the company's total assets minus its total liabilities. Equity is apparently defined in much the same way. Book ...
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3answers
435 views
What is the average economic value of a human life?
What is the economic value of a human life?
If there are multiple methods to use in calculating, what are they, which method is preferred, and why?
Considerations/sub-questions on methods
A. Is the ...
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2answers
132 views
Can value be defined as any increase in consumer or producer surplus?
I know that the term Economic Value Added is an internal measure that executives use to measure the financial performance of a company, say, executing a project. However, I'm doing some research in ...
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1answer
94 views
Securities Prices in Financial Markets
Hello in the moment I am working with the book "Introduction to the Economics and Mathematics of Financial Markets" by Jakˇsa Cvitani ́c and Fernando Zapatero, which can be accessed at the link.
...
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0answers
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References for “Capturing value”
I have seen in several places references to "capturing value". For example:
Value Creation vs. Value Capture
Work on Stuff that Matters: First Principles
I think that such considerations are ...
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3answers
197 views
Accounting for machines in the labor theory of value
I have read that the Labour Theory of Value holds that the value of a good or service is determined by the total amount of labour involved in its production. To account for this properly, we must ...
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1answer
226 views
The Myth of Exploitation According to the Labor Theory of Value
According to the Labor Theory of Value, a good is worth as much as the labor put into it. We might then go further and assume that the labor put into it was as valuable as the goods used to fuel that ...
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12k views
What is the difference between present value and face value?
What is the difference between present value and face value?
When I search this question on Google is says they're the same in some cases and different in others. It says they are the same when the ...
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1answer
79 views
Why a new startup should ask a big investment company to value them as low as possible? [duplicate]
In "Silicon Valley TV Series" (in first episode of the second season) a bunch of guys, designed a new algorithm, and asked big companies to invest in that project and value their product.
At a ...
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1answer
188 views
Real vs Nominal Value Concept
I am having trouble understanding the meaning of the real value of an economic quantity.
The concept is easy to grasp: take a year as a base and adjust for inflation by pricing a commodity with the ...
