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Mutualism (economic theory) The origin of a natural right! Good God! who ever inquired into the origin of the rights of liberty, security, or equality? In "What Is Mutualism?", Clarence Lee Swartz says: It is, therefore, one of the purposes of Mutualists, not only to awaken in the people the appreciation of and desire ... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) ' Here, then, is a piece of land upon which, henceforth, no one has right to step, save the proprietor and his friends; which can benefit nobody, save the proprietor and his servants. Let these multiply, and soon the people [...] will have nowhere to rest, no place of shelter, no ground to t... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) Mutualists reject the idea of non-personal property and non-proviso Lockean sticky property. Any property that is obtained through the use of violence, bought with money that was gained through exploitation, or bought with money that was gained violating usufruct property norms is considered... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) If an employer pays a laborer equal to the value of the goods and services that he produced, then the capitalist would at most break even. In reality, the capitalist pays his worker less and after subtracting overhead, the remaining difference is exploited profit which the capitalist has gai... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) Wage labor would be eliminated and it would be impossible to become a capitalist because the widespread labor market would no longer exist and no one would be able to own the means of production in the form of non-personal property, two ingredients which are necessary for the exploitation of... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) One area of disagreement between anarcho-communists and mutualists stems from Proudhon's alleged advocacy of labour vouchers to compensate individuals for their labor as well as markets or artificial markets for goods and services. Peter Kropotkin, like other anarcho-communists, advocated th... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) Some critics object to the use of the term capitalism in reference to historical or actually existing economic arrangements which they term mixed economies. They reserve the term for the abstract ideal or future possibility of a genuinely free market. This sort of free-market capitalism may ... | https://en.wikipedia.org/wiki?curid=1799997 |
Mutualism (economic theory) This is due to the different conception of property rights between capitalism and mutualism, with the latter supporting free access to capital, the means of production and natural resources, arguing that permanent private ownership of land and capital entails to monopolization, if there is n... | https://en.wikipedia.org/wiki?curid=1799997 |
Direct labour cost variance is the difference between the standard cost for actual production and the actual cost in production. There are two kinds of labour variances. "Labour Rate Variance" is the difference between the standard cost and the actual cost paid for the actual number of hours. "Labour efficiency varianc... | https://en.wikipedia.org/wiki?curid=1803535 |
Flipover A flip-over is one of five types of poison pills in which current shareholders of a targeted firm will have the option to purchase discounted stock after the potential takeover. Introduced in late 1984 and adopted by many firms, the strategy gave a common stock dividend in the form of rights to acquire the fir... | https://en.wikipedia.org/wiki?curid=1805899 |
Killer bees (business) Killer bees are firms or individuals that are employed by a target company to fend off a takeover bid. These include investment bankers (primary), accountants, attorneys, tax specialists, etc. They aid by utilizing various anti-takeover strategies, thereby making the target company economically u... | https://en.wikipedia.org/wiki?curid=1808848 |
Lobster trap (finance) A lobster trap, in corporate finance, is an anti-takeover strategy used by target firms. In a lobster trap, the target firm issues a charter that prevents individuals with more than 10% ownership of convertible securities (includes convertible bonds, convertible preferred stock, and warrants) fro... | https://en.wikipedia.org/wiki?curid=1808976 |
Instant payment notification (IPN) is a method for online retailers to automatically track purchases and other server-to-server communication in real time. This allows E-commerce systems the opportunity to store payment transactions, order information and other sales internally. IPN messages can represent payment succe... | https://en.wikipedia.org/wiki?curid=1809995 |
Instant payment notification Server-side scripting languages such as PHP and ASP that power most E-commerce systems are event driven and make no distinction between a user-generated event or a machine-generated event. Utilizing this fact, IPN messages facilitate the coordination of the order state changes between the e... | https://en.wikipedia.org/wiki?curid=1809995 |
Common law of business balance The common law of business balance, usually expressed as "you get what you pay for", is the principle that one cannot pay a little and get a lot. In addition, paying a cheap price will not guarantee the buyer will receive a product of high quality value. In other words, a low price of a g... | https://en.wikipedia.org/wiki?curid=1811075 |
Common law of business balance " The statement has frequently been attributed to 19th-century art critic and social thinker John Ruskin, although there is little evidence to support Ruskin's authorship. In the "Yale Book of Quotations", editor Fred R. Shapiro states that this statement was "Attributed in "Chicago Daily... | https://en.wikipedia.org/wiki?curid=1811075 |
Common law of business balance " Ruth Hutchison, who maintains the website for the Ruskin Centre at Lancaster University, stated that, "we have been asked many times about this quote, or similar versions of it, and have never been able to identify it as being by Ruskin. We suspect that it has been wrongly attributed to... | https://en.wikipedia.org/wiki?curid=1811075 |
Iron law of prohibition The iron law of prohibition is a term coined by Richard Cowan in 1986 which posits that as law enforcement becomes more intense, the potency of prohibited substances increases. Cowan put it this way: "the harder the enforcement, the harder the drugs." This law is an application of the Alchian–Al... | https://en.wikipedia.org/wiki?curid=1811508 |
Iron law of prohibition When applied to rum-running, drug smuggling, and blockade running the more potent products become the sole focus of the suppliers. Thornton notes that the greatest added cost in illegal sales is the avoidance of detection. Thornton says that if drugs are legalized, then consumers will begin to w... | https://en.wikipedia.org/wiki?curid=1811508 |
Iron law of prohibition Consider the situation where there are two goods formula_1 and formula_2, which are the higher quality and lower quality goods with formula_3 - the higher quality good has a higher price. Each of these goods has a compensated demand curve - a demand curve which holds utility constant - of the fo... | https://en.wikipedia.org/wiki?curid=1811508 |
Iron law of prohibition For a homogeneous function formula_22 of degree formula_23, defined as:formula_24Euler's homogeneous function theorem states that:formula_25Demand functions are homogeneous of degree 0 - if all prices and income are multiplied by formula_26, then the consumer's demand for goods remains the same ... | https://en.wikipedia.org/wiki?curid=1811508 |
Jim Merkel (born 1957) is an American author and engineer, who moved from involvement in the military industry to advocating simple living. Since 1989, Merkel has dedicated himself to trying to reduce his personal impact on the environment and to encourage others to do the same. Initially trained as an electrical engin... | https://en.wikipedia.org/wiki?curid=1812162 |
Jim Merkel He is now working on Saving Walden's World, A film About how having small families and small ecological footprints can save the planet. | https://en.wikipedia.org/wiki?curid=1812162 |
Discounted utility In economics, discounted utility is the utility (desirability) of some future event, such as consuming a certain amount of a good, as perceived at the present time as opposed to at the time of its occurrence. It is calculated as the present discounted value of future utility, and for people with time... | https://en.wikipedia.org/wiki?curid=1812304 |
Discounted utility Given the interpretation of economic agents as rational, this exempts time-valuations from rationality judgments, so that someone who spends and borrows voraciously is just as rational as someone who spends and saves moderately, or as someone who hoards his wealth and never spends it: different peopl... | https://en.wikipedia.org/wiki?curid=1812304 |
Financial secretary is an administrative and executive government position within the governance of a state, corporation, private or public organization, small group or other body with financial assets. A financial secretary oversees policy concerning the flow of financial resources like money in and out of an organiza... | https://en.wikipedia.org/wiki?curid=1813766 |
Policy-ineffectiveness proposition The policy-ineffectiveness proposition (PIP) is a new classical theory proposed in 1975 by Thomas J. Sargent and Neil Wallace based upon the theory of rational expectations, which posits that monetary policy cannot systematically manage the levels of output and employment in the econo... | https://en.wikipedia.org/wiki?curid=1814486 |
Policy-ineffectiveness proposition Economics has firm foundations in assumption of rationality, so the systematic errors made by agents in macroeconomic theory were considered unsatisfactory by Sargent and Wallace. More importantly, this behavior seemed inconsistent with the stagflation of the 1970s, when high inflatio... | https://en.wikipedia.org/wiki?curid=1814486 |
Policy-ineffectiveness proposition Sanford Grossman and Joseph Stiglitz argued that even if agents had the cognitive ability to form rational expectations, they would be unable to profit from the resultant information since their actions would then reveal their information to others. Therefore, agents would not expend ... | https://en.wikipedia.org/wiki?curid=1814486 |
Policy-ineffectiveness proposition Since it was possible to incorporate the rational expectations hypothesis into macroeconomic models whilst avoiding the stark conclusions that Sargent and Wallace reached, the policy-ineffectiveness proposition has had less of a lasting impact on macroeconomic reality than first may h... | https://en.wikipedia.org/wiki?curid=1814486 |
Policy-ineffectiveness proposition However, no systematic countercyclical monetary policy can be built on these conditions, since even monetary policy makers cannot foresee these shocks hitting economies, so no planned response is possible. According to the common and traditional judgement, new classical macroeconomics... | https://en.wikipedia.org/wiki?curid=1814486 |
Samuel Hollander Samuel Hollander, (born April 6, 1937) is a British/Canadian/Israeli economist. Born in London, he received a B.Sc. in economics from the London School of Economics in 1959. In 1961 he received an AM and a Ph.D. in 1963 from Princeton University. He started with the University of Toronto becoming an As... | https://en.wikipedia.org/wiki?curid=1815696 |
Top-ups In business, a top-up is a variation of a company’s stock repurchase program for common shareholders. Although this buyback reduces voting interest of its shareholder, the shareholder may subsequently increase its holdings, called a top-up. For example, if company A holds 20% of voting power, and company B redu... | https://en.wikipedia.org/wiki?curid=1817668 |
Location model A location (spatial) model refers to any monopolistic competition model in economics that demonstrates consumer preference for particular brands of goods and their locations. Examples of location models include Hotelling’s Location Model, Salop’s Circle Model, and hybrid variations. In traditional econom... | https://en.wikipedia.org/wiki?curid=1820751 |
Location model He represented this notion through a line of fixed length. Assuming all consumers are identical (except for location) and consumers are evenly dispersed along the line, both the firms and consumer respond to changes in demand and the economic environment. In Hotelling’s Location Model, firms do not exerc... | https://en.wikipedia.org/wiki?curid=1820751 |
Location model The price realized by the consumer is formula_10, where formula_11 is the price of the product including the cost of transportation. As long as formula_4 for Firm x is greater than Firm y, consumers will travel to Firm y to purchase their product; this minimizes formula_11. Only the consumers who live at... | https://en.wikipedia.org/wiki?curid=1820751 |
Location model If only Firm x can relocate without costs and Firm y is fixed, Firm x will move to the side of Firm y where the consumer pool is maximized. Consequently, the profits gained from Firm X significantly increase, while Firm Y incurs a significant loss. One of the most famous variations of Hotelling’s locatio... | https://en.wikipedia.org/wiki?curid=1820751 |
Location model The utility formula_22 for a particular product at distance formula_18 is represented in the following equation: formula_24 Where formula_22 is the utility from a superior brand, formula_26 denotes the rate at which an inferior brand lowers the utility from the superior brand, formula_18 is the location ... | https://en.wikipedia.org/wiki?curid=1820751 |
Cointegration is a statistical property of a collection of time series variables. First, all of the series must be integrated of order "d" (see Order of integration). Next, if a linear combination of this collection is integrated of order less than d, then the collection is said to be co-integrated. Formally, if ("X","... | https://en.wikipedia.org/wiki?curid=1822603 |
Cointegration Testing the hypothesis that there is a statistically significant connection between the futures price and the spot price could now be done by testing for the existence of a cointegrated combination of the two series. The first to introduce and analyse the concept of spurious—or nonsense—regression was Udn... | https://en.wikipedia.org/wiki?curid=1822603 |
Cointegration The usual procedure for testing hypotheses concerning the relationship between non-stationary variables was to run ordinary least squares (OLS) regressions on data which had been differenced. This method is biased if the non-stationary variables are cointegrated. For example, regressing the consumption se... | https://en.wikipedia.org/wiki?curid=1822603 |
Cointegration The Johansen test is a test for cointegration that allows for more than one cointegrating relationship, unlike the Engle–Granger method, but this test is subject to asymptotic properties, i.e. large samples. If the sample size is too small then the results will not be reliable and one should use Auto Regr... | https://en.wikipedia.org/wiki?curid=1822603 |
Cointegration Tests for cointegration assume that the cointegrating vector is constant during the period of study. In reality, it is possible that the long-run relationship between the underlying variables change (shifts in the cointegrating vector can occur). The reason for this might be technological progress, econom... | https://en.wikipedia.org/wiki?curid=1822603 |
Solow residual The is a number describing empirical productivity growth in an economy from year to year and decade to decade. Robert Solow, the Nobel Memorial Prize in Economic Sciences-winning economist, defined rising productivity as rising output with constant capital and labor input. It is a "residual" because it i... | https://en.wikipedia.org/wiki?curid=1827716 |
Solow residual Many economists pointed to the Soviet command economy as a model of high-growth through tireless re-investment of output in further industrial construction. However, some economists took a different view: they said that greater capital concentrations would yield diminishing returns once the marginal retu... | https://en.wikipedia.org/wiki?curid=1827716 |
Solow residual The 'Solow growth model' is not intended to explain or derive the empirical residual, but rather to demonstrate how it will affect the economy in the long run when imposed on an aggregate model of the macroeconomy exogenously. This model was really a tool for demonstrating the impact of "technology" grow... | https://en.wikipedia.org/wiki?curid=1827716 |
Solow residual An example economic model of this form is given below: where: To measure or predict the change in output within this model, the equation above is differentiated in time ("t"), giving a formula in partial derivatives of the relationships: labour-to-output, capital-to-output, and productivity-to-output, as... | https://en.wikipedia.org/wiki?curid=1827716 |
Solow residual The above relation gives a very simplified picture of the economy in a single year; what growth theory econometrics does is to look at a sequence of years to find a statistically significant pattern in the changes of the variables, and perhaps identify the existence and value of the "Solow residual". The... | https://en.wikipedia.org/wiki?curid=1827716 |
Solow residual Knowing quantities of output formula_13, Capital formula_14, Labor formula_15 and estimates for formula_16,formula_17 and formula_18 we can solve for formula_19 as: Mankiw, Romer, and Weil augmented the Solow-Swan model with a human capital term. The explicit inclusion of this term in the model transfers... | https://en.wikipedia.org/wiki?curid=1827716 |
Solow residual Rapidly expanding countries (catching up after a crisis or trade liberalization) tend to have a rapid turn-over in technologies as they accumulate capital. It has been suggested that this will tend to make it harder to gain experience with the available technologies and that a zero in these cases actuall... | https://en.wikipedia.org/wiki?curid=1827716 |
An Austrian Perspective on the History of Economic Thought is two-volume non-fiction work written by Murray N. Rothbard. Rothbard said he originally intended to write a "standard Adam Smith-to-the-present moderately sized book"; but expanded the scope of the project to include economists who preceded Smith and to compr... | https://en.wikipedia.org/wiki?curid=1835603 |
Slutsky equation The (or Slutsky identity) in economics, named after Eugen Slutsky, relates changes in Marshallian (uncompensated) demand to changes in Hicksian (compensated) demand, which is known as such since it compensates to maintain a fixed level of utility. There are two parts of the Slutsky equation, namely the... | https://en.wikipedia.org/wiki?curid=1838280 |
Slutsky equation The first term on the right-hand side represents the substitution effect, and the second term represents the income effect. Note that since utility is not observable, the substitution effect is not directly observable, but it can be calculated by reference to the other two terms in the Slutsky equation... | https://en.wikipedia.org/wiki?curid=1838280 |
Slutsky equation A Giffen good is a product that is in greater demand when the price increases, which are also special cases of inferior goods. In the extreme case of income inferiority, the size of income effect overpowered the size of the substitution effect, leading to a positive overall change in demand responding ... | https://en.wikipedia.org/wiki?curid=1838280 |
Shared services is the provision of a service by one part of an organization or group, where that service had previously been found, in more than one part of the organization or group. Thus the funding and resourcing of the service is shared and the providing department effectively becomes an internal service provider.... | https://en.wikipedia.org/wiki?curid=1838287 |
Shared services is different from the model of outsourcing, which is where an external third party is paid to provide a service that was previously internal to the buying organization, typically leading to redundancies and re-organization. There is an ongoing debate about the advantages of shared services over outsourc... | https://en.wikipedia.org/wiki?curid=1838287 |
Shared services A large-scale cultural and process transformation can be a key component of a move to shared services and may include redundancies and changes of work practices. It is claimed that transformation often results in a better quality of work life for employees although there are few case studies to back thi... | https://en.wikipedia.org/wiki?curid=1838287 |
Shared services The measurement occurs by using agreed key performance indicators (KPIs). Although the amount of KPIs chosen differs greatly it is generally accepted that fewer than 10 carefully chosen KPIs will deliver the best results. Organizations do attempt to define benchmarks for processes and business operation... | https://en.wikipedia.org/wiki?curid=1838287 |
Shared services The conventional accounting practice used to generate these figures is disputed however by management thinker Professor John Seddon, who argues that the measurement known as 'unit cost' tells you nothing about overall costs. Overall costs include 'failure demand', which is defined as a failure to do som... | https://en.wikipedia.org/wiki?curid=1838287 |
Shared services There are reports of UK government shared service centres failing to realise savings, such as the Department of Transport's project, described as 'stupendous incompetence' by the Parliament's Public Accounts Committee. The Northern Ireland Civil Service (NICS), has implemented shared services for a numb... | https://en.wikipedia.org/wiki?curid=1838287 |
Shared services Organizations that have centralized their IT functions have now begun to take a close look at the technology services that their IT departments provide to internal customers, evaluating where it makes sense to provide specific technology components as a shared service. E-mail and scanning operations wer... | https://en.wikipedia.org/wiki?curid=1838287 |
Operating budget The operating budget contains the expenditure and revenue generated from the daily business functions of the company. The operating budget concentrates on the operating expenditures, including cost of produce sold in the market or popularly known as cost of sold goods (COGS) and the revenue or income. ... | https://en.wikipedia.org/wiki?curid=1845959 |
Wealth effect The wealth effect is the change in spending that accompanies a change in perceived wealth. Usually the wealth effect is positive: spending changes in the same direction as perceived wealth. Changes in a consumer's wealth cause changes in the amounts and distribution of his or her consumption. People typic... | https://en.wikipedia.org/wiki?curid=1854161 |
Wealth effect Supply is fairly inelastic, so if a helicopter drop (or gold rush) were to suddenly create large amounts of wealth in the low wealth city, those who did not receive this new wealth would rapidly find themselves crowded out of such markets, and materially worse off in terms of their ability to consume/purc... | https://en.wikipedia.org/wiki?curid=1854161 |
Drawdown (economics) The drawdown is the measure of the decline from a historical peak in some variable (typically the cumulative profit or total open equity of a financial trading strategy). Somewhat more formally, if formula_1 is a stochastic process with formula_2, the drawdown at time formula_3, denoted formula_4, ... | https://en.wikipedia.org/wiki?curid=1854458 |
Drawdown (economics) The Max DD duration is the longest time between peaks, period. So it could be the time when the program also had its biggest peak to valley loss (and usually is, because the program needs a long time to recover from the largest loss), but it doesn’t have to be. When formula_11 is Brownian motion wi... | https://en.wikipedia.org/wiki?curid=1854458 |
Drawdown (economics) There are two limiting cases to be aware of: | https://en.wikipedia.org/wiki?curid=1854458 |
Voronezhavia was an airline based in Voronezh, Russia. Its flight operations had been taken over by Polet Airlines, itself manages Voronezh Airport. | https://en.wikipedia.org/wiki?curid=1855109 |
SONIA (interest rate) SONIA (Sterling Over Night Index Average) is the effective reference for overnight indexed swaps for unsecured transactions in the Sterling market. The SONIA itself is a risk-free rate. It was launched in March 1997 by the WMBA, and is endorsed by the British Bankers Association (BBA). The Bank of... | https://en.wikipedia.org/wiki?curid=1859819 |
Infant industry argument The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar eco... | https://en.wikipedia.org/wiki?curid=1859820 |
Infant industry argument In addition, countries that put up barriers to imports will often face retaliatory barriers to their exports, potentially hurting the same industries that infant industry protection is intended to help. Ernesto Zedillo, in his 2000 report to the UN Secretary-General, recommended "legitimising l... | https://en.wikipedia.org/wiki?curid=1859820 |
Moody's Aaa Bond Moody's Aaa Corporate Bond, also known as "Moody's Aaa" for short is an investment bond that acts as an index of the performance of all bonds given an Aaa rating by Moody's Investors Service. This corporate bond is often used in macroeconomics as an alternative to the federal ten-year Treasury Bill as ... | https://en.wikipedia.org/wiki?curid=1860839 |
Branch plant economy It is not entirely evident who first used the branch plant economy concept; however, it has been extensively used in Canadian and UK literature since the 1970s. This concept broadly describes the negative consequences on the growth of the regions whose economies are primarily composed of branch pla... | https://en.wikipedia.org/wiki?curid=1860973 |
Branch plant economy These developments led to measures such as the creation of Petro-Canada, a government-owned oil and gas company, implemented by the Trudeau government in the mid-1970s to increase Canadian control over the oil industry. The crown corporation was created as one of the demands of the NDP in exchange ... | https://en.wikipedia.org/wiki?curid=1860973 |
Bradespar is a Brazilian holding company headquartered in São Paulo. The company was formed in 2000 by Banco Bradesco in order to allow the bank to spin off some of its industrial investments. In 2005, the company began to hold large holdings in mining company Vale and utility company CPFL Energia, which is one of the ... | https://en.wikipedia.org/wiki?curid=1873231 |
Decommodification In political economics, decommodification is the strength of social entitlements and citizens' degree of immunization from market dependency. In regards to the labor force, decommodification describes a "degree to which individual, or families, can uphold a socially acceptable standard of living indep... | https://en.wikipedia.org/wiki?curid=1874375 |
Decommodification It aims to decrease the influence of commodities and to limit the effect of commercialization. Esping-Andersen's fundamental study of decommodification sparked contemporary academic research efforts hoping to resolve "paradoxes" in this application. Exiting the labor market with little or no loss of i... | https://en.wikipedia.org/wiki?curid=1874375 |
The Natural Economic Order (; published in Bern in 1916) is considered Silvio Gesell's most important book. It is a work on monetary reform and land reform. It attempts to provide a solid basis for economic liberalism in contrast to the 20th-century trend of collectivism and planned economy. The work was translated int... | https://en.wikipedia.org/wiki?curid=1876294 |
Intermediate good Intermediate goods, producer goods or semi-finished products are goods, such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate goods, or make and then sell, or buy then use them. In the production process, interme... | https://en.wikipedia.org/wiki?curid=1876560 |
Machine orders data (also known as machine tool order data) is a figure issued by Japan Machine Tool Builders Association (JMTBA) every month. It serves as one indicator of the Japanese economy. In the forex market, the release of such data is often followed by sharp change in currency exchange rate. | https://en.wikipedia.org/wiki?curid=1876938 |
Vivo Minas (formerly known as Telemig Celular) was a regional Brazilian telecommunications company headquartered in Belo Horizonte. The company used to be one of eight wireless telephone companies that emerged from the break-up of Brazil's government-owned telephone monopoly Telebras. The name Telemig comes from the fa... | https://en.wikipedia.org/wiki?curid=1878831 |
Market anomaly A market anomaly in a financial market is predictability that seems to be inconsistent with (typically risk-based) theories of asset prices. Standard theories include the capital asset pricing model and the Fama-French Three Factor Model, but a lack of agreement among academics about the proper theory le... | https://en.wikipedia.org/wiki?curid=1881005 |
Market anomaly The four primary explanations for market anomalies are (1) mispricing, (2) unmeasured risk, (3) limits to arbitrage, and (4) selection bias. Academics have not reached a consensus on the underlying cause, with prominent academics continuing to advocate for selection bias, mispricing, and risk-based theor... | https://en.wikipedia.org/wiki?curid=1881005 |
Market anomaly This intercept is commonly denoted by the Greek letter alpha: formula_1 where formula_2 is the return on the anomaly, formula_3is the return on the risk-free rate, formula_4is the slope from regressing the anomaly's return on the market's return, and formula_5is the return on the "market", often proxied ... | https://en.wikipedia.org/wiki?curid=1881005 |
Market anomaly " The unmeasured risk explanation is closely related to the shortcomings of the CAPM as a theory of risk as well as shortcomings of empirical tests of the CAPM and related models. Perhaps the most common critique of the CAPM is that it is derived in a single period setting, and thus is missing dynamic fe... | https://en.wikipedia.org/wiki?curid=1881005 |
Market anomaly Propositions include the well-known Fama-French 3-Factor Model, Fama-French-Carhart 4-factor model, Fama-French 5-factor model, and Stambaugh and Yuan's 4-factor model. These models are all empirically-oriented, rather than derived from a formal theory of equilibrium like Merton's ICAPM. Anomalies are al... | https://en.wikipedia.org/wiki?curid=1881005 |
Market anomaly This explanation for anomalies is also known as data snooping, p-hacking, data mining, and data dredging, and is closely related to the multiple comparisons problem. Concerns about selection bias in anomalies goes back at least to Jensen and Bennington (1970). Most research on selection bias in market an... | https://en.wikipedia.org/wiki?curid=1881005 |
Market anomaly They find that multiple-testing statistics imply that factors with t-stats < 3.0 should not be considered statistically significant, and conclude that most published findings are likely false. | https://en.wikipedia.org/wiki?curid=1881005 |
Wealth elasticity of demand The wealth elasticity of demand, in microeconomics and macroeconomics, is the proportional change in the consumption of a good relative to a change in consumers' wealth (as distinct from changes in personal income). Measuring and accounting for the variability in this elasticity is a continu... | https://en.wikipedia.org/wiki?curid=1883907 |
Wealth elasticity of demand Some researchers have tried to resolve this difficulty by redefining wealth as the 'stable underlying value' of assets, which doesn't change with asset values, although this raises other questions of consumer rationality. Most researchers calculate the wealth effect in real terms, so a defla... | https://en.wikipedia.org/wiki?curid=1883907 |
Wealth elasticity of demand In particular, the extent to which house price increases affect the rest of the economy is a critical question. A naïve assumption (or first approximation) linking the wealth and income elasticities of demand is: However, this approach overlooks the fact that people typically treat income an... | https://en.wikipedia.org/wiki?curid=1883907 |
Dual economy A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand. The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in ... | https://en.wikipedia.org/wiki?curid=1884317 |
Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. In addition to estimating the selling price of a ... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation Premise of value for fair value Calculation results can vary considerably depending upon the choice of both the standard and premise of value. In an actual business sale, it would be expected that the buyer and seller, each with an incentive to achieve an optimal outcome, would determine the fair mar... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation A common source of economic information for the first section of the business valuation report is the Federal Reserve Board's Beige Book, published eight times a year by the Federal Reserve Bank. State governments and industry associations also publish useful statistics describing regional and indust... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation The most common normalization adjustments fall into the following four categories: Three different approaches are commonly used in business valuation: the income approach, the asset-based approach, and the market approach. Within each of these approaches, there are various techniques for determining ... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation Most treatises and court decisions encourage the valuator to consider more than one technique, which must be reconciled with each other to arrive at a value conclusion. A measure of common sense and a good grasp of mathematics is helpful. The income approach relies upon the economic principle of expe... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation An example is licensable intellectual property whose value needs to be established to arrive at a supportable royalty structure. A discount rate or capitalization rate is used to determine the present value of the expected returns of a business. The discount rate and capitalization rate are closely r... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation The CAPM originated from the Nobel Prize-winning studies of Harry Markowitz, James Tobin, and William Sharpe. The method derives the discount rate by adding risk premium to the risk-free rate. The risk premium is derived by multiplying the equity risk premium with "beta", a measure of stock price vol... | https://en.wikipedia.org/wiki?curid=1885799 |
Business valuation They include, for example, the Arbitrage pricing theory (APT) as well as the Consumption-based Capital Asset Pricing Model (CCAPM). Furthermore, alternative capital market models were developed, having in common that expected return hinge on "multiple" risk sources and thus being less restrictive: Ne... | https://en.wikipedia.org/wiki?curid=1885799 |
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