scholarly journals Do balanced-budget fiscal stimuli of investment increase its economic value?

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Cesare Dosi ◽  
Michele Moretto ◽  
Roberto Tamborini
Keyword(s):  
Real Option ◽  
Economic Value ◽  
Economic Loss ◽  
Typical Feature ◽  
Fiscal Policies ◽  
Fiscal Stimulus ◽  
Real Option Analysis ◽  
Private And Public ◽  
Balanced Budget ◽  
Returns On Investment

Abstract We examine the timing of a business investment providing valuable external benefits to society. A surge in uncertainty about private returns, a typical feature if not a cause of recessions, delays capital outlays to an extent that may be detrimental to social welfare. Is there an efficiency-improving public policy directed at accelerating investment? By real option analysis, we try answering this question by comparing three fiscal policies: (i) a simple subsidy on investment, (ii) a balanced-budget fiscal stimulus where the subsidy is subsequently covered by profit taxation, and (iii) by taxing external benefits as well. We show that, under a balanced-budget stimulus, investment acceleration may come at the expense of a net economic loss, and the higher is uncertainty on private returns, the higher the likehood of a negative outcome. However, this risk strongly declines when government spending is balanced by taxing both private and public returns on investment.

scholarly journals A real option approach for the valuation of switching output flexibility in residential property investment

2018 ◽  
Vol 23 (2) ◽  
pp. 133-151 ◽  
Author(s):  
Kwabena Mintah ◽  
David Higgins ◽  
Judith Callanan
Keyword(s):  
Real Options ◽  
Real Option ◽  
Economic Value ◽  
Management Tool ◽  
Residential Property ◽  
Option Valuation ◽  
Content Type ◽  
Real Option Analysis ◽  
Real Option Valuation ◽  
Mixed Use

Purpose Uncertainties in residential property investment performance require that real estate assets are designed in a flexible manner to respond to impacts of market dynamics. Though estimating the cost of flexibility is straightforward, assessing the economic value of flexibility is not. The purpose of this study is to explore the potential practical application of real option analysis to determine the economic value of a switching output flexibility embedded in a residential property investment in Australia. The study involves the exploration of an optimal strategy for investment in a residential development through real option analysis and valuation of a mixed use investment. Design/methodology/approach The real option valuation model developed by McDonald and Siegel (1986) is adopted for the evaluation because the switching output flexibility is likened to a perpetual American call option with dividend payout. Findings Through real option analysis, the economic value of switching output flexibility of the mixed use building was determined to be higher than the initial upfront costs. Moreover, a payoff of about $4million was determined to be the value of the switching output flexibility, therefore justifying upfront investments in flexibility as an uncertainty and risk management tool. Practical implications This application is an important demonstration of the practical use of options pricing techniques (real options analysis) and delivers further evidence needed to support the adoption of real option valuation in practice. Flexibility can also enhance risks and uncertainty management in residential property investment better than the adjustment of discount rates. Originality/value There is limited evidence on the use of real options techniques for the valuation of switching output flexibility in practice, and this comes as an original application; both the case study and data are all initial applications of switching flexibility in the Australian property market.

Fiscal Stimulus, Fiscal Policies, and Financial Instability

2021 ◽  
Vol 55 (2) ◽  
pp. 552-558
Author(s):  
Alicia Girón ◽  
Eugenia Correa
Keyword(s):  
Financial Instability ◽  
Fiscal Policies ◽  
Fiscal Stimulus

scholarly journals Major Differences Between the Set of Rules of Accounting and Fiscal Policies in Albania

2016 ◽  
Vol 3 (1) ◽  
pp. 155
Author(s):  
Ilva Isa
Keyword(s):  
Social Development ◽  
Mixed Methodology ◽  
Fiscal Policies ◽  
Previous Theory ◽  
The Social ◽  
Private And Public ◽  
Entire Society ◽  
Accounting Rules ◽  
Chartered Accountants ◽  
Vital Factor

Studying and interacting in dynamic and unstable economic environments of transitory post dictatorial economies makes every previous theory and previous study very often controversial. In this study we aim to bring a comparison between the set of accounting rules and fiscal policies. A specific focus will be on the most used and most practiced terms and voices, without making apart other parts that we rarely find in such economies. The importance of taxes and fiscal policies in non stable economies is a vital factor for the enhancement of the economy and the social development of the entire society. The information will be acquired through a mixed methodology: searching for information in literature, gathering of information from responsible authorities and interviewing key information specialists. This mixed methodology allows to obtain a deeper set of insights into this issue. Interviews were done with three auditors and other five chartered accountants, employed in private and public sector or were partners in large consulting practice

scholarly journals Еffect of insect infestation on the economic value of smoked fish sold in selected markets in Nigeria

2020 ◽  
Vol 12 (1) ◽  
pp. 82-86
Author(s):  
A.A. Ayeloja ◽  
F.O.A. George ◽  
W.A. Jimoh ◽  
G.L. Adebisi
Keyword(s):  
Insect Pests ◽  
Insect Pest ◽  
Economic Value ◽  
Sampling Technique ◽  
Economic Loss ◽  
Insect Infestation ◽  
Chi Square ◽  
Smoked Fish ◽  
Pest Infestation ◽  
Multistage Sampling

Abstract. In the present study a multistage sampling technique using semi-structured questionnaire was used to obtain information on socio- economic characteristics of the respondents and on economic loss of smoked fish resulting from insect pest infestation. Smoked fishes were bought from 10 markets in Oyo state, South West of Nigeria and checked in the laboratory for the insect pests. Data were analyzed using descriptive statistics and Chi-square. Results indicated that insects at their larvae stage cause more economic loss to smoked fish than adult insects while Necrobia rufipes and Dermestes spp. are the insects found to infest the smoked fishes in this study. The insect infestation of the smoked fish leads to huge economic loss. Of all respondent groups the women dominate smoked fish business.

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