The Theory of Professional Valuation: Towards Postneoclassic Synthesis

Abstract

These pdf slides briefly present new developments within the area of valuation of illiquid assets (Professional Valuation) and explain current revisions as to the conceptual understanding of exchange values which are now getting tied up again with the individual's Worth. A contention is made that these concepts and developments in modelling can be spliced together and made sense of in terms of the neo-Austrian approach to economics. Thanks to it the Professional Valuation has now got a chance to found its theory on a viable and cohesive principles of its own (the 'transaction based view'), rather then adopting ill-fitting principles from other types of economic measurements through a 'by-analogy' transference and ad-hoc adjustments. The structure of the presentation is such: 1) Types of economic measurements (EM): a modern typology; 2) Economics paradigms: No singular paradigm is befitting for all types of EMs. Some EMs types can proceed in their development on the lines of the neoclassic school, but this is not the case for the professional valuation; 2) Neo-Austrian or postneoclassic school: understanding the world in terms of human actions (praxeology) and why this is relevant for the professional valuation; 3) Application of neo-Austrian thinking: Comparing two models of worth-based assets pricing - 1) gains- from- trade based(game theory), and 2) zero-gains -from -trade models(transaction equilibrium principle). 4) Bases of value within the Professional Valuation: their 'Venn's diagram' based on their reduction to worth.