Questions tagged [value]

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28 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
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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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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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37 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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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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18 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
81 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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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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216 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
38 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
58 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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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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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
21 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
96 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
21 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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28 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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124 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
25 views

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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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
58 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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21 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
187 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
43 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
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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
71 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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136 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
228 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
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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
72 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
40 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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40 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
28 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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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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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
109 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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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
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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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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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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
136 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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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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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
3k 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
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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
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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
175 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....
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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 ...