Questions tagged [value]

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10
votes
1answer
180 views

Do large public companies ever “quit while they're ahead”?

Large public companies (e.g. S&P 500) seem to end their lives in one of two ways: either they're acquired (or taken private), or they go bankrupt. Theoretically it seems like there should be a ...
9
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3answers
2k 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 ...
8
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1answer
196 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 ...
7
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3answers
514 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 ...
7
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2answers
65 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, ...
6
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3answers
231 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 ...
6
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4answers
311 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 ...
5
votes
5answers
14k 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 ...
5
votes
1answer
130 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 ...
5
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1answer
323 views

Normalizing comparisons of corporations and countries

When publicly-traded corporations reach record valuations, articles in the media often compare such valuations to the GDPs of countries throughout the world, typically in the form "Company X's ...
4
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3answers
134 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 ...
4
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2answers
566 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 ...
4
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2answers
2k 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? ...
4
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2answers
264 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 ...
4
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0answers
37 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 ...
3
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1answer
227 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 ...
3
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2answers
566 views

If assets = liabilities + equity, what do we mean by overcapitalization?

Overcapitalization doesn't seem to have a clear-cut definition. For some it seems to deal with the ratio of current output (Y) over optimal output (Y*). A company would then be overcapitalized if Y &...
3
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2answers
49 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 ...
3
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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 ...
3
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1answer
103 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 ...
2
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5answers
417 views

Why isn't there an “ideal value” for a given currency? [closed]

If a currency can be worth too little (e.g. needing \$10,000,000,000 to buy a loaf of bread) and worth too much (e.g. being able to buy a loaf of bread for $0.00001), why isn't there an "ideal value" (...
2
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4answers
139 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 ...
2
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1answer
160 views

How to value market size?

Where can I learn about market value of specific sector? What keywords should I be looking to being understand which reserch facilities publish relevant reports? I'll put it simple: I'm building a ...
2
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1answer
77 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 ...
2
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1answer
96 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. ...
2
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1answer
68 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 ...
2
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2answers
6k 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 ...
2
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1answer
196 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 ...
2
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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 ...
2
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0answers
15 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 ...
2
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0answers
39 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 ...
2
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0answers
85 views

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 ...
1
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1answer
252 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 ...
1
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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 ...
1
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1answer
57 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 ...
1
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2answers
84 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 ...
1
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1answer
174 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....
1
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1answer
32 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 ...
1
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1answer
62 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 ...
1
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1answer
19 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 ...
1
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2answers
73 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. ...
1
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1answer
23 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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0answers
39 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
24 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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0answers
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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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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0answers
26 views

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 ...
1
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1answer
80 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 ...
0
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1answer
766 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 ...
0
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1answer
28 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 - «...