scholarly journals The State Value

2020 ◽  
Author(s):  
Moustafa Ahmed AbdElaal ◽  
Nesrien Mohamed Elmohamady
Keyword(s):  
Real Option ◽  
The State ◽  
Market Condition ◽  
Optimal Time ◽  
Discounted Cash Flow ◽  
Unlimited Number ◽  
Number Of Factors ◽  
Real Option Approach ◽  
Pricing Factors ◽  
The Government

Abstract This paper considers the state value using the real option approach. Our model allows adding unlimited number of factors which affects the state value. We adjusted Ornstein-Uhlenbeck stochastic process to be able to consider unlimited number of pricing factors to calculate the state value. We think this model may be useful to evaluate the performance of the government and making decision process via knowing the optimal value and the optimal time for the decision. This dynamic model differs from the traditional pricing model for evaluating the nation's wealth using the discounted cash flow model (DCF) which does not allows considering the market condition via using the risk-neutral approach. The states value determinants are divided into two classes, determinants and sub-determinants.

Valuation of a Troubled Firm: A Case Study on Jet Airways

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Anjala Kalsie
Keyword(s):  
Real Option ◽  
Market Price ◽  
Discounted Cash Flow ◽  
Book Value ◽  
The Real ◽  
Real Option Approach ◽  
Indian Firm ◽  
Real Option Method ◽  
Discounted Cash Flow Method

The objective in the paper is to value a firm in distress which is struggling to survive and continue its operations, unable to meet its debt obligations, and making losses so that it has a negative book value. The paper has taken a listed Indian firm which is in operation since a decade called Jet Airways. The paper looks at different methods to value this company, the most prominent being the real option approach to valuation. Finally, a comparison of different valuation methods was done with the real company price. The Discounted Cash Flow method tends to overvalue the price of a distressed firm. Real option method gives us a much smaller intrinsic price which is even close to the market price of the share.

scholarly journals A REAL OPTION APPROACH TO DETERMINE OPTIMAL INTERVENTION WINDOWS FOR MULTI-NATIONAL RAIL CORRIDORS

2015 ◽  
Vol 22 (1) ◽  
pp. 38-46 ◽  
Author(s):  
Nam LETHANH ◽  
Bryan T. ADEY
Keyword(s):  
Differential Equation ◽  
Financial Engineering ◽  
Real Option ◽  
Equation Model ◽  
Optimal Time ◽  
Differential Equation Model ◽  
Call Options ◽  
Optimal Intervention ◽  
Rail Infrastructure ◽  
Real Option Approach

In this paper, a real option approach to determine the optimal time to execute interventions on rail infrastructure, when it is not known for certain which intervention is to be executed, is presented (i.e. the optimal intervention window). Such an approach is useful in the management of rail infrastructure that belongs to a multi-national rail corridor where multiple railway organizations, ideally, should coordinate their maintenance interventions, years in advance, to minimize service disruptions. The approach is based on an adaptation of the Black and Scholes differential equation model used to value European call options in financial engineering. It is demonstrated by determining the optimal intervention window for infrastructure in a fictive rail corridor.

Optimal timing of investments modeled as perpetual american options in a lévy market

2021 ◽  
pp. 2150025
Author(s):  
Ini Adinya ◽  
G. O. S. Ekhaguere
Keyword(s):  
Infinitesimal Generator ◽  
Real Option ◽  
Real Life ◽  
Jump Diffusion ◽  
Poisson Processes ◽  
Optimal Time ◽  
Optimal Timing ◽  
Call Option ◽  
Maturity Date ◽  
Real Option Approach

Using a real option approach, this paper models an arbitrary real life investment, which typically has a long maturity date, as a perpetual American call option in a Levy market. Expressions for the moments, characteristic function and infinitesimal generator of the associated jump-diffusion Levy process, defined by two independent compound Poisson processes and two correlated standard Brownian motions, are derived and these fundamental results are employed to determine the optimal time for investment. An application of the results to a Build Operate and Transfer investment is furnished.

Investment Strategy of CO2-EOR in China: Analysis Based on Real Option Approach

2021 ◽  
Author(s):  
Jianfei Bi ◽  
Jing Li ◽  
Zhangxin John Chen ◽  
Yanling Gao ◽  
Yishan Liu ◽  
...  
Keyword(s):  
Oil Recovery ◽  
Technological Progress ◽  
Large Scale ◽  
Real Option ◽  
Financial Burden ◽  
Investment Strategy ◽  
Investment Value ◽  
Real Option Approach ◽  
Co2 Eor ◽  
The Government

Abstract As the most potential Carbon Capture, Utilization, and Storage (CCUS) technology, CO2-enhanced oil recovery (CO2-EOR) can both improve oil recovery and relieve the pressure of reducing CO2 emission. However, CO2-EOR projects have not been substantially deployed in China due to the significant investment and high uncertainties of technology, market, and policy. Therefore, identifying potential bottlenecks, and developing effective investment strategies are of great necessity at present. In this work, a real option approach combined with reservoir simulation technologies is proposed, which can investigate the optimal deployment timing and the investment value of the CO2-EOR projects. Meanwhile, a sensitivity analysis is conducted to examine the effects of different uncertainties. The results show that real option approach is suitable for the evaluation of CO2-EOR projects because it can fully take the flexibility of investment time into account. And it is found that under the current investment environment, it is difficult for China to deploy CO2-EOR projects on a large scale before 2030. High oil prices, low CO2 purchase prices, and transportation of CO2 by pipeline can bring forward the investment time and increase the investment value. Besides, government subsidies and technological progress are also favorable for the deployment of the project. Compared with technological progress, the effect of subsidies is more obvious, while it should be noted that huge subsidies will bring a financial burden to the government. In a word to launch CO2-EOR projects earlier and make it play a more important role in China's carbon emission reduction, a compound strategy should be made based on consideration of all these influencing factors.

scholarly journals Air pollution in the cities in Asian Russia: problems and prospects

2021 ◽  
Vol 885 (1) ◽  
pp. 012058
Author(s):  
V E Tsydypov ◽  
B O Gomboev ◽  
M A Motoshkina
Keyword(s):  
Public Health ◽  
Air Pollution ◽  
The State ◽  
Negative Effects ◽  
Atmospheric Air ◽  
Number Of Factors ◽  
Foreign Countries ◽  
The Government ◽  
Maximum Allowable Concentrations ◽  
The Impact

Abstract in this article, we look at the issue of air pollution in cities in the Asian part of Russia, which are the industrial centres of the regions. Air pollution is shaped by a number of factors, including natural ones. In recent years, studies have been carried out in Russia and in foreign countries to determine the impact of pollutants emitted into the atmospheric air. There is a direct correlation between the state of public health and the amount of pollutants in the atmospheric air. Exceeding the maximum allowable concentrations in the air of territories threatens the life and health of people living in them. We have looked at the level of air pollution in cities, including the most polluted ones, and the measures taken by the government and large companies to mitigate the negative effects.

A jump-diffusion real option approach for hotel investment under uncertain lodging demand

Kybernetes ◽  
2016 ◽  
Vol 45 (10) ◽  
pp. 1604-1616 ◽  
Author(s):  
Rufei Ma ◽  
Pengxiang Zhai
Keyword(s):  
Real Option ◽  
Economic Recession ◽  
Optimal Investment ◽  
Jump Diffusion ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Investment Timing ◽  
Real Option Approach ◽  
Hotel Investment ◽  
The Impact

Purpose One of the important characteristics of the hotel business is uncertainty of lodging demand, which can jeopardize hotel operation and ultimately even threaten a hotel’s survival during an economic recession. The purpose of this paper is to propose an approach to determine optimal hotel investment issues under uncertain lodging demand. Design/methodology/approach Uncertainty of lodging demand is classified into two types: the impact of unexpected economic recession and the temporary imbalance between supply of hotel rooms and lodging demand. A jump-diffusion real option approach is proposed to analyze how these two types affect optimal investment timing and the potential value of new hotel projects. The case of hotel investment in Macao is used to illustrate the jump-diffusion real option approach. Findings The results of numerical analysis show that the uncertainty induced by temporary imbalance between supply of hotel rooms and lodging demand increases the threshold of investment and hotel value, while the uncertainty induced by unexpected economic recession has ambiguous effects on the value and optimal investment timing of new hotel projects. Practical implications The jump-diffusion real option approach increases managerial flexibility for managers when making investment decisions on new hotel projects, allowing greater value to be generated than is possible with the conventional discounted cash flow method. Originality/value The approach separates the impact of unexpected economic recession on lodging demand from that of “normal” fluctuations in lodging demand, and it considers the impact of both types of uncertainty on hotel investment.

Some aspects of the idea of unity V. Solovyov and the present

2000 ◽  
pp. 20-25
Author(s):  
O. O. Romanovsky
Keyword(s):  
Nineteenth Century ◽  
National Policy ◽  
The State ◽  
Place Of Residence ◽  
The Government ◽  
The University ◽  
Temporary Closure

In the second half of the nineteenth century, the nature of the national policy of Russia is significantly changing. After the events of 1863 in Poland (the Second Polish uprising), the government of Alexander II gradually abandoned the dominant idea of ​​anathematizing, whose essence is expressed in the domination of the principle of serving the state, the greatness of the empire. The tsar-reformer deliberately changes the policy of etatamism into the policy of state ethnocentrism. The manifestation of such a change is a ban on teaching in Polish (1869) and the temporary closure of the University of Warsaw. At the end of the 60s, the state's policy towards a five million Russian Jewry was radically revised. The process of abolition of restrictions on travel, education, place of residence initiated by Nicholas I, was provided reverse.

Russia in 2000-2004: Heading towards State Capitalism?

2004 ◽  
pp. 42-65 ◽  
Author(s):  
A. Radygin
Keyword(s):  
The State ◽  
Private Business ◽  
Private Companies ◽  
State Capitalism ◽  
The Government

The paper deals with one of the characteristic trends of the 2000s, that is, the government's property expansion. It is accompanied by attempts to consolidate economic structures controlled by the state and state-owned stock packages and unitary enterprises under the aegis of holdings. Besides the government practices selective severe enforcement actions against a number of the largest private companies, strengthens its control over companies with mixed capital and establishes certain informal procedures of relationships between private business and the state. The author examines the YUKOS case and the business community's actual capacity to protect its interests. One can argue that in all likelihood the trend to the 'state capitalism' in its specific Russian variant has become clearer over 2003-2004.

Transiting into Singaporean identity: Immigration and naturalisation policy

2015 ◽  
Vol 13 (1) ◽  
pp. 33-48 ◽  
Author(s):  
Mathews Mathew ◽  
Debbie Soon
Keyword(s):  
Manpower Planning ◽  
The State ◽  
Comparative Perspective ◽  
Policy Discourse ◽  
Optimal Composition ◽  
Skilled Labour ◽  
Planning Policy ◽  
The Government ◽  
The Ideal

Debates in Singapore about immigration and naturalisation policy have escalated substantially since 2008 when the government allowed an unprecedentedly large number of immigrants into the country. This essay will discuss immigration and naturalisation policy in Singapore and the tensions that have been evoked, and how these policies are a key tool in regulating the optimal composition and size of the population for the state’s imperatives. It will demonstrate that although the state has, as part of its broader economic and manpower planning policy to import labour for economic objectives, it seeks to retain only skilled labour with an exclusive form of citizenship.  Even as the Singapore state has made its form of citizenship even more exclusive by reducing the benefits that non-citizens receive, its programmes for naturalising those who make the cut to become citizens which include the recently created Singapore Citizenship Journey (SCJ) is by no means burdensome from a comparative perspective. This paper examines policy discourse and the key symbols and narratives provided at naturalisation events and demonstrates how these are used to evoke the sense of the ideal citizen among new Singaporeans. 

Blockchain technologies and their application in governmentadministration

2019 ◽  
pp. 182-190
Author(s):  
Myroslav Kosіak ◽  
Inna Kosіak
Keyword(s):  
The State ◽  
Public Authorities ◽  
Property Insurance ◽  
Data Registration ◽  
State Management ◽  
Digital World ◽  
Blockchain Technology ◽  
The Government ◽  
Historical Comparative ◽  
Methods Analytical

The purpose of the article. The article considers the Blockchain technology asan innovative tool. In particular, the essence and background of the developmentof blocks, the principles and specifics of the functioning of the system, as well asthe scheme of its work, are determined. The article presents the prospects forusingdistributed registry technologies (blockchain) in various socioeconomic spheresrelated to state administration. Provided examples and forecasts of the use ofblockchain technologies in the provision of state and municipal services forindividuals and legal entities in the following areas: formation of a unified registercontaining the history of the placement of the state, municipal order, as well asprocurement of corporations with state participation and / or control; registers ofdocuments (diplomas, certificates, lost and disavowed passports, policies for movableand immovable property insurance, health, etc.); database of court decisions andexecutive proceedings; public participation portals for citizens of Ukraine district- city – country. The fact that the blockchain technology is, first of all, theprinciples, and not the only possible way of implementing them, allows us to counton maximum openness and multivariate application in a dynamically changingchanging«digital world». Methodology. The research methodology is to use a combinationof methods: analytical, historical, comparative. The scientific novelty. The priorityof state blockchain systems introduction in stationary and distant voting, distributeddocument circulation, medical data registration, land resources registration,electronic auctions (auctions) in Ukraine was grounded. Conclusions. Already today,blockchain systems can change the role and participation of citizens in the conductof the state-management process, by raising the responsibility level, from thetransparent will expression in the elections to regulating the government serviceactivity in the society’s digitization conditions. The main advantages blockchainsystems using by public authorities that will increase the level of citizens trust todigital technologies using in general, namely: reliability and reliability of datastorage, transparency of transactions and virtually absolute protection of informationfrom distortion and unauthorized removal (relocation), are determined. In furtherscientific research it is proposed to consider the promising areas of the blockchaindigital technology usage: service activities of public authorities, legal proceedings,property rights management, implementation of migration control, verification ofgoods and services, registration of data on passing qualifying tests, patenting,intellectual property, digital identification, logistics , taxation, accounting ofbudget funds movement.

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