Valuation Of Instruments Research Articles

Deformation of volatility curves of the Russian stock market on the example of margined options on futures contracts on the RTS index

We reassess the Russian stock market behavior in terms of the relationship between risk parameters and return on assets in connection with global structural changes in 2022. The subject of this study is volatility curves calculated from quotes of exchange options on RTS index futures. The purpose of the study is to analyze the relationship between volatility curves and the distribution of returns in 2015–2022, to analyze changes in the structure of this relationship in 2022, to assess the applicability of the GARCH model and to develop new investment and hedge strategies on the Russian stock market. The issue of interpreting the dynamics of volatility curves is disputable however, it was theoretically developed in the theory of valuation of derivative financial instruments. As a result of the study, unrelated structures of the distribution of returns and volatility curves for the RTS composite index were found throughout the entire period concerned, regardless of the presence of external shocks. It is concluded that in the Russian stock market, investors prefer protective options rather than speculative ones, despite the negative asymmetry of the distribution of RTS index returns. And despite the greater weight of positive returns in their distribution in each period under consideration, due to the technical features of the functioning of return indicators, the negative asymmetry of the return distribution does not necessarily correlate with growing volatility curves.

Difficult Diagnosis and Management of Concealed Cushing.

Adrenocorticotropic Hormone (ACTH)-secreting tumors account for 5- 10% of Cushing syndrome cases and are often difficult to diagnose and treat. A 44-year-old man presented with arterial hypertension and weight gain. On the physical examination, he exhibited central obesity, abdominal striae rubrae, and facial plethora. Due to the clinical suspicion of Cushing syndrome, the Nugent test and Liddle-1 test were performed, which showed a lack of cortisol suppression. ACTH levels were also high (138 pg/mL), so pituitary MRI and dynamic tests were performed, including the Corticotropin-releasing Hormone (CRH) stimulation test and Liddle-2. MRI showed a 3 mm pituitary microadenoma, but hormonal testing suggested ectopic ACTH production. Chest CT detected a 10-mm nodule in the upper lobe of the right lung, suspicious for a carcinoid tumor. However, the nodule did not exhibit any enhancement on 68-Gallium-DOTATOC PET-CT, and further, 18-FDG PET-CT was inconclusive. In addition, the nodule was deemed non-biopsiable due to its location. Meanwhile, the patient developed osteoporosis, resulting in two vertebral fractures and one rib fracture, which was treated with zoledronate. Furthermore, the patient developed acute aortic insufficiency. During bioprosthetic valve replacement, the thoracic surgeon performed wedge resection of the right upper lung lobe. The histological examination of the lesion revealed a typical lung carcinoid (1.2x0.9 cm, pT1bNXR0, Ki671%, ACTH positive in 95% of neoplastic elements). ACTH levels dropped to 4 pg/mL on the fourth postoperative day. ACTH-secreting tumors are particularly challenging diseases. A comprehensive hormonal and instrumental valuation is often required, necessitating a multidisciplinary approach.

The Evolving Attitudes of Institutional Economists: From Growth to Degrowth

The growth imperative characteristic of consumer capitalism rests on continuous mass production, fueled by fossil fuels, legitimized by the assumption that wants are infinite. Institutionalists have generally attributed growth to technology, a manifestation of the community’s knowledge base applied to increasing throughput to produce goods. That same technology, however, may precipitate degrowth, a decline in the throughput making growth possible. The first section attributes the Great Acceleration to continuous mass production, requiring the corporate form of business enterprise. The second section explains the degrowth movement focusing on the work of George Kallis. Degrowth arose in response to the adverse effects of growth, providing an ecological critique of mainstream economics. Degrowth advocates minimizing throughput. The third section briefly traces the evolution of institutionalists’ attitudes towards growth, attitudes guided by the principles of instrumental valuation and social provisioning. The fourth section offers a conclusion, focusing on pecuniary emulation pushing people to live at the pecuniary standard, a standard that continues to rise with increases in throughput and innovation.

Functional Magnetic Resonance Imaging Signatures of Pavlovian and Instrumental Valuation Systems during a Modified Orthogonalized Go/No-go Task.

Motivational (i.e., Pavlovian) values interfere with instrumental responding and can lead to suboptimal decision-making. In humans, task-based neuroimaging studies have only recently started illuminating the functional neuroanatomy of Pavlovian biasing of instrumental control. To provide a mechanistic understanding of the neural dynamics underlying the Pavlovian and instrumental valuation systems, analysis of neuroimaging data has been informed by computational modeling of conditioned behavior. Nonetheless, because of collinearities in Pavlovian and instrumental predictions, previous research failed to tease out hemodynamic activity that is parametrically and dynamically modulated by coexistent Pavlovian and instrumental value expectations. Moreover, neural correlates of Pavlovian to instrumental transfer effects have so far only been identified in extinction (i.e., in the absence of learning). In this study, we devised a modified version of the orthogonalized go/no-go paradigm, which introduced Pavlovian-only catch trials to better disambiguate trial-by-trial Pavlovian and instrumental predictions in both sexes. We found that hemodynamic activity in the ventromedial pFC covaried uniquely with the model-derived Pavlovian value expectations. Notably, modulation of neural activity encoding for instrumental predictions in the supplementary motor cortex was linked to successful action selection in conflict conditions. Furthermore, hemodynamic activity in regions pertaining to the limbic system and medial pFC was correlated with synergistic Pavlovian and instrumental predictions and improved conditioned behavior during congruent trials. Altogether, our results provide new insights into the functional neuroanatomy of decision-making and corroborate the validity of our variant of the orthogonalized go/no-go task as a behavioral assay of the Pavlovian and instrumental valuation systems.

Value of Biodiversity on Patagonian Rangeland: Estimation via a Hedonic Price Index

Plant diversity has long been linked to an increase in ecosystem productivity and function, but concrete examples in which ecosystem services are linked to diversity at the scale at which management decisions are taken are rare. We specifically tested for a correlation between plant diversity and provisioning ecosystem services estimated via the potential to produce meat and wool. We also tested whether higher levels of plant diversity conferred higher levels of ecosystem resistance to global change drivers, measured as the ability to sustain productivity across time. This was achieved by analyzing the interactive effects of a range of environmental variables on annual net primary production in a network of long-term biodiversity plots in Southern Patagonia. We found evidence of a positive correlation between plant diversity and plant productivity, which we relate to the ability to produce wool and meat from livestock. We also found evidence of a link between ecosystem resistance and diversity, though the effect was modest. The instrumental (economic) valuation presented doesn't account for the full range of values that rangeland in southern Patagonia generates. Nevertheless, these calculations do provide a starting point for broadening the discussion around the importance and value of natural capital in southern Patagonia. The results are consistent with theory and suggest that plant diversity has instrumental and monetary value as well as insurance value that may increase the resistance of rangeland ecosystems to global change drivers.

IMPROVEMENT OF METHODOLOGICAL PROVISION OF ECONOMIC EXPERTISE OF ACCOUNTING PROCEDURES REGARDING FINANCIAL INSTRUMENTS

The article is devoted to the generalization of approaches and key aspects of economic expertise of accounting, assessment and taxation of transactions with financial instruments. Based on expert practice, the questions that are most often put before experts by the bodies of preliminary investigation and the court during the investigation are summarized, and the methodology for solving questions of the correctness of financial instruments in the accounting by economic expertise is summarized. Methodical approaches to the economic expertise of accounting issues and valuation of financial instruments have been determined, including identification and generalization of typical offences, standardization of the tools for checking the reliability of accounting data, and methods of expert verification of indicators of the fair value of financial instruments in accounting. The peculiarities of the application of the specified methods in the practice of expert activity have been revealed, which will allow optimizing expert research and contribute to strengthening the reliability of the cost presentation of financial instruments in reporting. The methods for resolving the issues of the correctness of reflection in the accounting of financial instruments by forensic economic expertise were developed to cover and disclose the key aspects of the expertise of accounting, valuation, and taxation of transactions with financial instruments. It presents methodical approaches to the forensic economic expertise of accounting and valuation of financial instruments, including identification and generalization of typical offences, standardization of tools for verifying the accuracy of accounting data, and methods of expert verification of the fair value of financial instruments in accounting. Its application in the practice of expert activities will optimize expert research in this area and will help strengthen the reliability of the value of financial instruments in the reporting.

An examination of how six reasons for valuing nature are endorsed and associated with pro-environmental behavior across 12 countries

Balanced samples from 12 countries (N = 12,000) were surveyed about their reasons for valuing nature and pro-environmental behaviors. Results showed that people were least likely to endorse moral-based reasons for valuing nature, as compared to five other reasons (wellbeing benefits, nature’s intrinsic value, health benefits, economic value, identity-based reasons). However, moral- and identity-based reasons (relative to the other four reasons) for valuing nature were the strongest predictors of pro-environmental behavior across three different methods (correlations, linear mixed models, and relative importance analysis) and two pro-environmental behavior categories (consumer behavior and activism). In other words, the reasons for valuing nature most associated with pro-environmental behavior also garnered the weakest support, presenting a potential dilemma for those hoping to leverage values to promote pro-environmental behavior. We also identify a possible mechanism (awareness of one’s environmental impact) to explain why moral- and identity-based reasons for valuing nature best predict behavior. Finally, we examine between-country variability in the endorsement of the six reasons and the reasons’ associations with pro-environmental behaviors, and country-level factors that may explain between-country variability in these outcomes. We discuss these results in the context of broader literature that has focused on an intrinsic vs. instrumental valuation of nature dichotomy.

Transcranial direct-current stimulation enhances Pavlovian tendencies during intermittent loss of control.

Pavlovian bias is an innate motivational tendency to approach rewards and remain passive in the face of punishment. The relative reliance on Pavlovian valuation has been found to increase when the perceived control over environmental reinforcers is compromised, leading to behavior resembling learned helplessness (LH). Sixty healthy young adults underwent a Go-NoGo reinforcement learning task and received anodal high-definition transcranial direct current stimulation (HD-tDCS) over the medial prefrontal/dorsal anterior cingulate cortex in our randomized, double-blind, sham- controlled study. Furthermore, we evaluated changes in cue-locked mid-frontal theta power derived from simultaneous electroencephalography (EEG). We hypothesized that active stimulation would reduce Pavlovian bias during manipulation of outcome controllability, and the effect would be accompanied by stronger mid-frontal theta activity, representing arbitration between choice strategies in favor of instrumental relative to Pavlovian valuation. We found a progressive decrease in Pavlovian bias during and after loss of control over feedback. Active HD-tDCS counteracted this effect while not affecting the mid-frontal theta signal. The results were at odds with our hypotheses but also with previous findings reporting LH-like patterns during and after loss of control without brain stimulation. The discrepancy may be related to different protocols for the controllability manipulation. We argue that the subjective evaluation of task controllability is crucial in mediating the balance between Pavlovian and instrumental valuation during reinforcement learning and that the medial prefrontal/dorsal anterior cingulate cortex is a key region in this respect. These findings have implications for understanding the behavioral and neural underpinnings of LH in humans.

Problematic aspects of the valuation of financial instruments

In the activities of organizations, including healthcare organizations, such objects as financial instruments have recently become increasingly important. This increases the importance of information about such objects presented in the accounting (financial) statements of organizations. Due to the fact that in the accounting (financial) statements the objects of accounting are reflected in the monetary meter, the assessment chosen for them has the most significant influence on the formation of reporting information about the objects. The initial and subsequent valuation of financial instruments (as well as other accounting items) is regulated in accounting standards. At the same time, these standards may allow for various assessment options, the choice of which is provided to the accountant. In addition, various national and international standards may regulate a different approach to the valuation of objects, including for financial instruments. This article explores approaches to the valuation of financial instruments in the systems of Russian and international standards. The research methods were comparison, analysis, synthesis, grouping method, systemic and logical approaches. In the course of the study, a comparison was made of the rules for the formation of the initial and subsequent valuation of financial instruments in PBU 19/02 “Accounting for financial investments” and in IFRS 9 “Financial Instruments”. As a result of the research, aspects of similarities and differences between the regulations of Russian and international standards in relation to the initial and subsequent valuation of financial instruments are systematized. The impact of the identified differences on the value of indicators of financial instruments in the accounting (financial) statements is disclosed.

Методологічний компонент удосконалення оцінки довгострокової заборгованості як фінансового інструменту

Accounts receivable and payable are one of the most common types of financial instruments of agricultural enterprises. Until recently, such debt was considered a traditional accounting object with established recognition rules, cost measurement and disclosure. However, since the end of 2019, the valuation of such financial instruments has changed due to introducing the present value as a priority for its long-term type. The article aims to reveal the methodology for determining the present value of long-term debt as the most common type of financial instrument. The specifics of the application of the present value for the assessment of long-term debt were disclosed. It was substantiated which types of such debt are subject to the discounting requirement and which are not. The problem points of introducing a new type of assessment, which affect the data of financial statements, were identified. The article contains the necessary data and rules for the most reliable calculation of the present value of long-term receivables and long-term liabilities as financial instruments. The study results show that for the most accurate and objective determination of the present value of long-term receivables and long-term liabilities as financial instruments, the agricultural enterprise needs to record the methodology of cost measurement of such objects in the Regulation of accounting policy. In particular, it is necessary to specify the object (which type of long-term debt is subject to discounting and which is not), the calculation (formula), the variable (discounting rate selection procedure) and the documentary (a form of the primary document) components.

Xenotransplantation and Risks: The Opinion of Veterinary Students at Spanish Universities

Understanding the perception of the risks associated with xenotransplant, especially among professionals who will contribute to the care of the animals, is important for xenotransplant to become a clinical reality. The objective of this study was to analyze opinions regarding the risks of organ xenotransplant among veterinary university students in Spain. The study population was 2683 veterinary students from different courses and universities in Spain. Instrument valuation: Validated self-administered questionnaire completed anonymously (PCID-XENOTx-Ríos). Consent to collaborate in the study was requested. Variables for the study: attitude toward xenotransplant and risks (infectious, immunologic, ethical/moral, philosophical, religious, other unspecified risks). descriptive analysis, Student t test, χ2 test, and Fisher exact test. Of the total number of respondents, 2646 students answered this question, with a completion rate of 98.6%. They considered immunologic risk 78.4% (n=2074), infectious risk 48.6% (n=1286), ethical/moral risk 10.7% (n=284), philosophical risk 5.2% (n=137), religious risk 1.5% (n=40), and other risks 3.9% (n=104). Significant relationships were observed between immunologic risks (P < .001), ethical/moral risks (P < .001), and other risks (P=.002). Despite the consideration of different types of risks, the favorable attitude toward xenotransplant among veterinary students at Spanish universities is highly prevalent, and evidence-based information campaigns on the different risks associated with xenotransplant are important.

Do Financial Markets Price Risks to Climate Change?

Financial markets represent a powerful means to incentivize governments and corporates to take action against climate change. When climatic risks are reflected in the valuation of financial instruments, firms and governments acting in their own self-interest will reorient decisions toward climate-friendly activities. While the literature has found scant evidence that climate change risks are priced into equity share prices, recent work suggests that climate risks are priced into sovereign bonds. I re-examine the link between climate change and sovereign bonds and find that, as with share prices, sovereign bonds do not price in a climate risk premium. This paper thus resolves the anomalous finding that investors would demand a climate risk premium from sovereign bonds but not stocks. I find that, by virtue of their construction, measures of climate change vulnerability and resilience are highly rigid over time, and thus empirically capture country-specific risk premia rather than a climate-specific risk premium.

Aspek Hukum Perjanjian dalam Sistem Shopee Spinjam pada Kegiatan Kredit Online di Indonesia

This research aims to analyze the legal concept of a credit agreement when viewed from the Civil Code and how the concept of the Shopee SPinjam credit agreement on the Shopee application. This research is a normative legal research with a statutory approach method and a comparative approach. The results showed that the credit agreement on Shopee SPinjam when viewed from civil law is in accordance with what is regulated in the Civil Code and related regulations such as the implementing rules of Shopee SPinjam. So that from the review of civil law the position of the Shopee SPinjam credit agreement is considered valid. The legal consequences of the Online Money Lending Agreement in the perspective of Civil Law have binding legal force for the parties as agreements in general. However, there is something that must be considered, namely the interest rates of both because with high interest rates the agreement can be canceled. The government through Bank Indonesia or the Financial Services Authority must immediately make regulations regarding restrictions on loan interest or regulations related to Reasonable Interest Rates for loans and financial technology. The determination of interbank bidding rates will reduce the complexity of financial contracts by encouraging the standardization of the use of benchmark interest rates on debt securities and/or loans with floating interest rates, rupiah interest rate derivatives and also for valuation of financial instruments. In addition, the government must ensure supervisory authority and provide protection for users and providers of financial technology with certaintyDOI: https://doi.org/10.26905/mlj.v3i1.9262

CHARACTERISTICS OF BANKING INVESTMENT IN THE SECURITIES PORTFOLIO AND CRITERIAS FOR EVALUATION OF ITS EFFICIENCY

Goal. Substantiation of the theoretical basis of the peculiarities of bank investment in the aspect of financial investment in accordance with the criteria for assessing the effectiveness of the securities portfolio.. Method. Substantiation of the theoretical basis of the features of bank investing is based on the methods of theoretical generalization, grouping and comparison. The study of the model of valuation of financial instruments of bank investment and criteria for the effectiveness of the securities portfolio is based on the methodology of system analysis and synthesis. Results. The process of investing in a banking institution by forms has been studied. It is substantiated that the investment process in accordance with the Law of Ukraine "On Banking" and NBU regulations has a certain limit on the bank's resources. The types and forms of bank investments were analyzed, which made it possible to propose a scheme of bank investments, which includes the primary and secondary distribution of bank investments. It is emphasized that banking investment needs special attention in the sector of financial investments in the stock market, as this market is more profitable and is one of the most promising markets for investment. According to the results of the study of models for estimating the value of financial instruments of bank investment and criteria for the effectiveness of the securities portfolio, the fundamental differences in assessing the effectiveness of financial instruments for reverse cash flows based on the fact that there are financial instruments of debt and equity. Scientific novelty. Models that allow to combine the parameters of income and risk of the securities portfolio with the help of one criterion of financial investment efficiency of the securities portfolio, which combines the levels of risk and income in one value, are substantiated. Practical significance. The results of the study form a scientific and practical basis for conducting various analytical and forecasting research in terms of choosing a financial instrument in the securities portfolio in terms of expected return and risk for financial activities, which allows to form a strategy for managing banking investment activities depending on existing stock market conditions

Trends in Debt Valuations of Private Equity–Backed Dermatology Groups Before and During the COVID-19 Pandemic

Private equity (PE) firms have invested in and consolidated dermatology practices. Private equity firms typically operate by conducting leveraged buyouts, which occur when target companies are acquired with capital from PE firms and a combination of debt, which may include debt instruments held in business development corporations (BDCs). To investigate the valuations of dermatology PE-backed group (DPEG) debt instruments in BDCs' portfolios both before and during the COVID-19 pandemic. This cross-sectional study, conducted from August 1, 2016, to August 31, 2021, examined public financial statements filed by BDCs lending to DPEGs. The public filings of BDCs were searched from inception of the DPEG's debt instrument in a BDC's portfolio, and the amortized cost and fair value of each debt instrument were tabulated. The premium or discount at which each debt instrument was valued at a given time was calculated by dividing the difference between the fair value and the amortized cost by the amortized cost. Different testing methods were conducted for normal or nonnormal data to test differences in debt valuations across all DPEGs between 2 consecutive or nonconsecutive quarters. The search of the public filings found 10 BDCs containing data on 9 unique DPEGs. Overall, there were 15 trackable DPEG debt instruments because multiple BDCs can hold debt instruments for a given DPEG. Data were available from August 2016 through August 2021. During the study time frame, the amortized cost of the loans for an individual DPEG ranged from a low of $1.7 million to a high of $100 million. The valuation of debt instruments was stable for many DPEGs until some were discounted starting in May 2018, with a significant decrease from May 2019 to August 2019 (-1.4%; 95% CI, not applicable; P = .04), prior to the COVID-19 pandemic. Another significant decrease occurred during the pandemic from February to June 2020 (-9.0%; 95% CI, -13.6% to -4.4%; P = .002). US Dermatology Partners decreased to the lowest valuation (Golub BDC, -39.7%; TCG BDC Inc, -48.8%; TCG BDC II, -48.8%) of the DPEGs examined in November 2020 even after receiving a $10 million forgivable Small Business Administration Paycheck Protection Program loan in May 2020. After pharmaceutical companies announced effective COVID-19 vaccine candidates in November 2020, there was a modest and significant improvement in debt valuations (2.3%; 95% CI, 0.2%-0.4%; P = .03); however, they remained discounted. Only PhyNet Dermatology's debt instruments improved to a premium valuation by August 2021. Debt valuations of some DPEGs found in this cross-sectional study suggest a lower probability that their loans will be repaid in full. This could be a signal that some DPEGs are not performing well financially.

Self vs. other, child vs. adult. An experimental comparison of valuation perspectives for valuation of EQ-5D-Y-3L health states

ObjectivesEQ-5D-Y-3L health states are valued by adults taking the perspective of a 10-year-old child. Compared to valuation of adult EQ-5D instruments, this entails two changes to the perspective: (i) child health states are valued instead of adult health states and: (ii) health states are valued for someone else instead of for oneself. Although earlier work has shown that these combined changes yield different values for child and adult health states that are otherwise equal, it currently remains unclear why. Hence, we aimed to disentangle the effects of both changes.MethodsA sample of 205 students (mean age: 19.48) was surveyed. Each respondent completed visual analogue scale (VAS) and time trade-off (TTO) tasks for five EQ-5D-Y-3L states, using four randomly ordered perspectives: (i) self-adult (themselves), (ii) other-adult (someone their age), (iii) self-child (themselves as a 10-year-old), (iv) other-child (a child of 10 years old). We compared how each perspective impacted outcomes, precision and quality of EQ-5D-Y-3L valuation.ResultsOverall, differences between perspectives were consistent, with their direction being dependent on the health states and respondents. For VAS, the effect on outcomes of valuation depended on severity, but variance was higher in valuation with child perspectives. For TTO, we observed that EQ-5D-Y-3L states valued on behalf of others (i.e., children or adults) received higher valuations, but lower variances.ConclusionThe use of a different perspective appears to yield systematic differences in EQ-5D-Y-3L valuation, with considerable heterogeneity between health states and respondents. This may explain mixed findings in earlier work.

ФОРМУВАННЯ ОБЛІКОВОЇ ПОЛІТИКИ ЗА ПРИНЦИПОМ БЕЗПЕРЕРВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ

Formulation of the problem. Based on the study, the prerequisites, features and components of the formation of accounting policies in the context of business continuity are revealed. The purpose of the article is to substantiate the theoretical and methodological and organizational provisions of accounting policy formation in the context of the implementation of the concept of continuity. The object of research is the process of formation of accounting policy and its impact on the quality of corporate financial reporting information. Methods used in the study: scientific knowledge, method of generalization, comparison, logical - meaningful, methods of induction and deduction. The main hypothesis is that the formation of accounting policies aimed at determining the regulations of accounting and reporting from the standpoint of reflecting complete and reliable information about the real value of assets and liabilities will help reconcile the interests of all stakeholders. Presenting main material. The article identifies the prerequisites, directions and elements of the formation of accounting policies on the principle of continuity of enterprises. Provisions on the development of theoretical and methodological foundations for the formation of accounting policies of enterprises on the basis of risk-oriented approach are revealed. The necessity of valuation of assets and liabilities according to the criteria: fair, discounted and market value of enterprises is substantiated and the methodological support of valuation of financial instruments in accounting is revealed. Originality and practical significance are proposals for the formation of methodological and organizational support and recommendations for the measurement of assets and liabilities at fair value in order to improve the quality of financial statements. Research findings. The formation of accounting policy in the context of the principle of continuity is based on the requirements of International Accounting Standards and National Accounting Standards and depends on the needs of management, methods and techniques of accounting. In the process of developing an accounting policy, it is necessary to take into account the information needs of various stakeholders to disclose information in corporate financial statements. The introduction of theoretical and methodological provisions for the formation of elements of accounting policy on the principle of continuity will meet the information needs of different users, improve the quality of financial reporting and assess the impact of accounting policies on the real value of enterprises in the future.

Think of the Children: A Discussion of the Rationale for and Implications of the Perspective Used for EQ-5D-Y Health State Valuation

ObjectivesThe recently published EQ-5D-Y valuation protocol prescribes the general public values EQ-5D-Y health states for a 10-year-old child. This child perspective differs from the individual perspective applied for valuation of adult EQ-5D instruments. This article discusses the rationale for and implications of applying a child perspective for EQ-5D-Y health state valuation. MethodsThis article was informed by an exploration of the normative and empirical literature on health state valuation. We identified and summarized key discussion points in a narrative review. ResultsAlthough valuing EQ-5D-Y health states from an individual perspective is feasible, it may be problematic for several reasons. The use of a child perspective implies that—rather than valuing one’s own health—someone else’s health is valued. This may require the projection of one’s own beliefs, expectations, and preferences on others, which could change the decision processes underlying the elicited preferences. Furthermore, because preferences are obtained for a 10-year-old child, it is unclear if this given age as well as other (missing) information on the described child beneficiary (should) affect valuation of EQ-5D-Y health states. ConclusionsThe change from an individual to a child perspective in the valuation of EQ-5D-Y will likely lead to differences in utilities. This has implications for the estimation of incremental health-related quality-of-life gains in economic evaluations of health technologies for children and adolescents and therefore might affect reimbursement decisions. Further research is necessary for gaining insight into the extent to which this impact is normatively and empirically justified.

Complex Modernization: The Value of Children and Social Transformation in Contemporary Vietnam

The value of children has emerged as an important lens in understanding social changes and individual decision-making concerning childbearing and childrearing. The current study illustrates the usefulness of this lens in the context of contemporary Vietnam, based on a national representative survey dataset. We develop a theoretical framework incorporating three sets of structural factors (cohort, South or North, family SES) plus demographic factors to understand the valuation of children and its fertility implications. We reveal the following findings. First, we document a generally higher emotional value than instrumental value among Vietnamese respondents across cohorts. Moreover, the post-reform birth cohort reports both lower emotional and lower instrumental value of children; and the Southern sample on average holds higher emotional and higher instrumental values of children than the Northern sample. Second, in regression analysis, the emotional value of children shows little variation and the proposed factors explain a lower proportion of its variation, but we capture a strong cohort effect, regional divide and social class effect on the instrumental value of children. Last, while there exists a negative association between emotional valuation of children and respondents’ fertility, and a positive association between instrumental valuation of children and respondents’ fertility, such effects have been reduced to non-significant levels once independent variables (birth cohort, region, and family SES) are controlled. This study challenges and complicates the dominant discourse in existing literature on the rise of the “emotionally valuable” and “economically and instrumentally useless” child in modern societies. We instead reveal that respondents’ value orientations and their impact on fertility trends should be contextualized in Vietnam’s historical and political trajectory of ‘complex modernization’.

A 50-year Retrospect of the Black-Scholes-Merton (BSM) Argument through Three Questions

This paper provides a retrospect of the Black-Scholes-Merton (BSM) argument that is used to derive the common BSM formula. The paper utilizes and builds upon a frame used to provide a retrospect of the Put-Call Parity (PCP) provided in Wurts (2018a). Accordingly, this paper fills a promise that lessons-learned from PCP analysis can be applied to more complex models for financial derivatives, and leads to a subsequent promise that lessons-learned from BSM analysis can also be applied to more-complex financial instruments and their models. The paper utilizes heuristics already developed for PCP analysis (as found in Wurts (2018a, 2018b, and 2019)) and introduces additional heuristics that can be useful in the corporate governance of model validation, including the micro corporate governance of financial instrument valuation models. The paper address three retrospect questions. (1) Should the BSM argument hold? (No.) (2) Has the BSM argument held? (Not necessarily.) (3) What are consequences for presuming the BSM argument has held? (Inconsistent logic, with added details.) The paper also provides an assessment regarding how other scholars have provided a different retrospect on the BSM model in general. And while other scholars have emphasized a naming of the BSM Formula (i.e., the seminal formula for a Call option) and the BSM Equation (i.e., the seminal fundamental partial differential equation for “all” derivatives, that leads to the BSM Formula), it is not clear that scholars have well characterized the BSM Argument. Hence, an introductory description of the BSM Argument is provided herein, in the context of what the BSM model and approach is.