# Tag Info

### What determines whether slavery is economically efficient in industrialized/modern era economies?

Necessary Caveats When Discussing Slavery: First before tackling this question it is important to note that this issue is broad and complex. This is because there is no single 'slavery'. For example, ...
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### How to convert daily returns to annual returns?

So, let me start with your second question. No you cannot multiply by 365. You could approximate it by $$\log(\text{Annual Return})=365*\log(\text{Daily Return}),$$ but for what you are doing, it ...
• 2,006
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### Aggregate production function and returns to scale

I am assuming that you are interested in finding the aggregate production function when you have two plants and they use same inputs. So if you have $k$ units of capital and $l$ units of labor in ...
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### If return rises by same % as inflation rate rises, then perfect inflation hedge?

Not 100% sure of what you need help with, but ill throw some things here and if it doesn't help tell me and ill delete this answer. Since you asked to "mathematically show why this is the case&...
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### Relationship between capital and decreasing marginal prodcutivity

The claim is not that capital decreases marginal productivity, but that the marginal productivity of capital is decreasing. (See "diminishing returns.") That is, the first "unit" ...
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### Why is the Chinese stock market weak while its economy is strong?

Well for one, the stock market doesn't inherently represent the real economy, while they do of course tend to be correlated, it is entirely possible (though usually somewhat unlikely) to have a ...
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1 vote

### Solving a problem using CAPM and capital structure theory

Assuming that the project has the same beta as the firm's existing assets -- and assuming I'm remembering what I learned in my introductory CorpFin class correctly --, you are indeed right. The ...
• 335
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### Leveraged Return on Investment

I am not sure I understand your question. In most projects, the bulk of the investment is a down payment, so the ROI is meant to capture precisely that. I.e. the average return that the money you put ...
• 4,198
1 vote
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### How to calculate cost of equity?

Your formula is wrong. The derivation for the cost of equity $r_E$ is actually: \$r_A = r_D(1-t)\frac{D}{V}+r_E \frac{E}{V}\\ r_E \frac{E}{V} = r_A - r_D(1-t)\frac{D}{V}\\ r_E = r_A \frac{V}{E} - ...
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### intuitive interpretation of the marginal return/productivity of capital being less than one

Several thoughts in this area: 1) Capital stock lasts over time. I may trade 1 euro for 1 unit of capital. This capital returns 0.01 euros every period forever. It pays itself off eventually. 2) ...
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### Should housing be considered a form of capital for the purpose of capital gains taxation?

Should housing be considered a form of capital for the purpose of capital gains taxation? Chamley-Judd's proposition aims at avoid[ing] unlimited growth in tax compounding as the horizon extends. ...
• 1,807
1 vote
Accepted

### Should housing be considered a form of capital for the purpose of capital gains taxation?

I think there are a few different ways one can go about examining the topic and general question you bring up. For that reason, I'd like to highlight that this isn't my primary field, and so my answer ...
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### Determining the capital return from the investment in dynamic firms and their growth

I put the article through translate and it appears that this is the (translated) section you are talking about: "To achieve this selection of 50 nuggets, the Tech Tour did not scan only the continent,...
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