Valuation Tools Research Articles

Assessment of the Impact of Human Capital on the Gross Regional Product (for Example, the Udmurt Republic)

The authors focus on the measurement of the impact of human capital on economic growth because of negative trends in population, decreasing cash incomes, "brain - drain", decline in the quality of education and growing stratification in access by income level. It is pointed out that the existing tools of human capital valuation should be analyzed and tools for assessing the impact of human capital on economic growth have essential significant. Authors put forward a hypothesis that the growth of human capital drives to GDP growth or GRP growth is it is about a region. The article provides raw data and calculations of indicators of efficiency of use of capital goods and human capital for the Russian Federation for 2014-2016 and for the Udmurt Republic for 2013-2017. Conclusions drawn from calculations formulating indicate that the hypothesis concerning direct correlation between cost of human capital and efficiency of use tangible and intangible assets is failure. Particularly it is showed that the increase in the cost of human capital went hand in hand with decreasing of the efficiency of use of tangible and intangible assets in 2014 and 2016.

Valuation tools and politicians’ willingness to sell public real estate: a survey experiment

ABSTRACT Public managers often employ valuation tools to support policymakers. These tools are expected to rationalize decision-making. Using a vignette-based, randomized survey experiment with Flemish politicians, the authors study the effect of the type of valuation tool, valuation outcome, and asset salience on politicians’ willingness to sell public real estate assets. The purpose is to test whether valuation tools indeed spark rational reactions from politicians, thus demonstrating their value as decision-making support. Findings suggest that cognitive biases emerge when politicians are confronted with valuation tools. Public managers need to take those biases in account when employing valuation tools.

Cryptoasset Market Structure and Concentration in the Presence of Network Effects

When network products and services become more valuable as their userbase grows (network effects), this tendency can become a major determinant of how they compete with each other in the market and how the market is structured. Network effects are traditionally linked to high market concentration, early-mover advantages, and entry barriers, and in the cryptoasset market they have been used as a valuation tool too. The recent resurgence of Bitcoin has been partly attributed to network effects too. We study the existence of network effects in six cryptoassets from their inception to obtain a high-level overview of the application of network effects in the cryptoasset market. We show that contrary to the usual implications of network effects, they do not serve to concentrate the cryptoasset market, nor do they accord any one cryptoasset a definitive competitive advantage, nor are they consistent enough to be reliable valuation tools. Therefore, while network effects do occur in cryptoasset networks, they are not a defining feature of the cryptoasset market as a whole.

Short Sellers, Short Squeezes, and Securities Fraud

The modern securities fraud class action lawsuit rests on a legal fiction. Plaintiffs are able to bring claims together and avoid proving individual reliance because over thirty years ago, the Supreme Court assumed that almost all investors purchase and sell securities based on their belief that the market price is accurate. In today's world of short sellers, options traders, algorithmic traders, and institutional investors with more valuation tools than the issuers themselves, that assumption cannot hold. These atypical traders, particularly short sellers, are becoming more and more visible in class actions as lead plaintiffs and lead plaintiff candidates, and sometimes as defendants. Courts have not decided exactly what to do with short sellers in securities fraud cases, and this Article is one of the first to create a theoretical and normative framework for atypical investors in the securities fraud paradigm. Building on a dataset of all 10b-5 cases filed in federal court in 2017, this Article explores the questions of when and whether short sellers and other atypical traders should benefit from the securities fraud class action structure.

Analyzing Willingness to Pay for Improved Tap Water Quality: A Case of Kathmandu Valley of Nepal

Solving chronic drinking water shortage problem of Kathmandu Valley has been finally achieved after arduous two decades of effort of Melamchi Water supply project. At this moment, though it is futile to ask economic worthiness of this national pride project but there is still ample room to investigate ability and willingness to shoulder such lumpy financial burden by ultimate beneficiaries of potable water in Kathmandu valley. Accordingly, this paper intends to measure and investigate the factors affecting household’s willingness to pay for improved water supply. The study enumerated 4941 households falling under Kathmandu Upatyaka Khanepani Limited (KUKL) service areas during 2015 to 2016 period. It incorporated contingency valuation (CV) tools to estimate willingness to pay by residents. We applied ordinal logistic regression model to analyze the major determinants of WTP for improved water supply system and measured different elasticity on the base of simple OLS using STATA version 12. The findings show that a third of households are headed by females, while the average family size and families per building are 5.2 and 9.6 persons respectively; all above national average. The reported major source of water by residents in the study area are Kathmandu Upattyaka Khanepani Limited (KUKL) (36%), jar water (20%), tanker (15%); and well/Kuwa and handpump (20%); while total expenditure in Nepalese Rupees (NRs) is 1314 per household per month. The willingness to pay for KUKL’s improved water by the household is NRs 404, just over 2.5 times the mean current KUKL tariff (NRs. 155) per month. The ordinal logistic regression result shows household current quantity of water utilization, price of jar water, income and perceived water quality and waterborne diseases as major determinants of WTP for improved water supply. The odds of paying higher WTP for improved water supply are significantly positive for aforementioned factors except the price of jar (which affects negatively). The income inelastic (<1) demand for KUKL’s water demand signifies water as basic necessity commodity and proportion of income spent is small. The negative signs of coefficients of cross elasticity of KUKL water demand with respect to prices of jar water and tanker supplied water indicates that jar water and tanker water as strong substitutes of KUKL supply system. The study concluded that the low WTP for improved KUKL’s water supply in comparison to current total water expenditure is ‘wait and see’ signal for KUKL authorities and government. The study infers that KUKL needs to win confidence of its consumers in terms of sufficiency, regularity and quality before scaling up water tariffs.

Класифікація чинників впливу на оцінку нерухомості при її продажу

Annotation. Introduction. The mechanism of property valuation in Ukraine at the present stage of its development deals with the formation of a database on the state and dynamics of changes in the real estate market and the development of methodological tools for property valuation. This article is devoted to the study of such a category of tools as factors influencing the valuation of real estate when selling it in Ukraine. Purpose. The purpose of this article is to consider the factors that affect the valuation of real estate when selling it, and their classification. Results. The task of property valuation depends on its purpose. Properly defined purpose of the assessment establishes the cost base (or its type). Depending on the goal, a number of factors have been formed, which are taken into account in the evaluation process and affect its size, and the approach to their interpretation. The article considers four groups of factors. Physical factors take into account the condition of the property, its location and the characteristics of the stage of the life cycle of the territory. Analysis of this group allows you to determine the prospects of the object in accordance with the general condition of the area in which it is located. Economic factors have been determined by the demand in the local real estate market, risks, construction costs and related factors related to its course, taxes, proximity to roads and utilities. Considerable attention is paid in the article to the assessment of the value of enterprises and such specific factors of influence as liquidity of assets and the nature of corporate governance. Social factors consist of changes in the number and employment of the population in the territory, gender and age characteristics of the population, income level and so on. For enterprises, this group of factors includes the social composition of employees. The last group of factors, administrative (political), has a global character – it is determined by the nature of public policy in the area related to real estate or construction. Conclusions. Drawing conclusions in the article, the author emphasizes the constant nature of changes in factors – both the emergence of new and reassessment of others. It can change even depending on who is conducting it, so the evaluation should be independent, and a number of recommendations should be implemented to improve its transparency. Keywords: property; property management; management efficiency; territorial community.

Predicting hydrologic responses to climate changes in highly glacierized and mountainous region Upper Indus Basin.

The Upper Indus Basin (UIB) is a major source of supplying water to different areas because of snow and glaciers melt and is also enduring the regional impacts of global climate change. The expected changes in temperature, precipitation and snowmelt could be reasons for further escalation of the problem. Therefore, estimation of hydrological processes is critical for UIB. The objectives of this paper were to estimate the impacts of climate change on water resources and future projection for surface water under different climatic scenarios using soil and water assessment tool (SWAT). The methodology includes: (i) development of SWAT model using land cover, soil and meteorological data; (ii) calibration of the model using daily flow data from 1978 to 1993; (iii) model validation for the time 1994–2003; (iv) bias correction of regional climate model (RCM), and (v) utilization of bias-corrected RCM for future assessment under representative concentration pathways RCP4.5 and RCP8.5 for mid (2041–2070) and late century (2071–2100). The results of the study revealed a strong correlation between simulated and observed flow with R2 and Nash–Sutcliff efficiency (NSE) equal to 0.85 each for daily flow. For validation, R2 and NSE were found to be 0.84 and 0.80, respectively. Compared to baseline period (1976–2005), the result of RCM showed an increase in temperature ranging from 2.36°C to 3.50°C and 2.92°C to 5.23°C for RCP4.5 and RCP8.5 respectively, till the end of the twenty-first century. Likewise, the increase in annual average precipitation is 2.4% to 2.5% and 6.0% to 4.6% (mid to late century) under RCP4.5 and RCP8.5, respectively. The model simulation results for RCP4.5 showed increase in flow by 19.24% and 16.78% for mid and late century, respectively. For RCP8.5, the increase in flow is 20.13% and 15.86% during mid and late century, respectively. The model was more sensitive towards available moisture and snowmelt parameters. Thus, SWAT model could be used as effective tool for climate change valuation and for sustainable management of water resources in future.

OPTIONS METHOD FOR OIL EXPLOITATION INVESTMENT PROJECT EFFICIENCY EVALUATION UNDER RISK CONDITIONS

In this work modern methods of investment project efficiency evaluation were studied, advantages and disadvantages of using the real option model were shown in comparison with the DCF model. It is proved that a rainbow option is an effective valuation tool in conditions of high oil prices volatility and low study of reserves and resource. Two stages may be identified: mineral exploration and maintenance work. Black-Scholes model was used for option pricing.

Using the Business Model Canvas to increase the impact of green infrastructure valuation tools

There is a range of tools available to value the ecosystem services provided by urban green infrastructure including i-Tree Eco, CAVAT, GI-Val, and more. These valuation tools quantify the natural environment in order to incorporate it within urban decision-making processes. In the UK, valuation tools have been used successfully to calculate commensurate replacement values for trees (e.g. Southwark, London), enhance the value of green infrastructure at the design stage (e.g. Wirral), and secure resource for future planting and maintenance (e.g. Wrexham). However, these valuation tools have not consistently had the desired positive impact on decision-making. In response, we have adapted the Business Model Canvas for use in green infrastructure valuation (BMC4GI) to create a framework that focuses the valuation process on the Change Objective, i.e. the decision that valuation intends to influence. The BMC4GI outlines nine building blocks to consider prior to valuation, namely; (i) Change Objective, (ii) Target Audience, (iii) Key Activities, (iv) Key Resources, (v) Key Partners, (vi) Channels, (vii) Audience Message, (viii) Cost Structure, and (ix) Revenue Streams. We link the BMC4GI to four general scenarios where valuation has proven to be successful, and provide a working example of the template based on green infrastructure valuation on a redevelopment site. BMC4GI can support any approach to green infrastructure valuation, globally, and we invite others to apply BMC4GI to create a shared case study library of good practice in green infrastructure valuation.

Funciones isoelásticas de utilidad, rejillas trinomiales, volatilidad y aversión al riesgo cambiante: Un modelo de valuación con opciones reales de empresas de base tecnológica

La valoración de inversiones en I&D, intangibles y empresas de base tecnológica (ebt) requiere de modelos que valoren: flexibilidad estratégica, volatilidad cambiante según ciclo de vida y riesgos sin activos financieros gemelos. En mercados incompletos e imperfectos, los riesgos deben valorarse con funciones de utilidad del inversor. Por lo expuesto, se propone un modelo de valuación de opciones reales con rejillas trinomiales, volatilidad cambiante, funciones isoelásticas de utilidad y aversión al riesgo variable. Mediante un análisis de caso y estudio de sensibilidad sobre valuación de ebt, es ilustrado su funcionamiento. Los resultados obtenidos demuestran su versatilidad. El modelo captura riesgos “privados” y flexibilidad estratégica, como herramienta de valuación para este tipo de inversiones dentro de mercados ambiguos, imperfectos e incompletos.

5-Input majority gate based optimized full adder circuit in nanoscale coplanar quantum-dot cellular automata

Quantum-dot cellular automata (QCA) is one of the alternative nanotechnologies that empower nanoscale circuit models with high performance and minimal energy depletion features. In this study, design for a 5-input majority gate (MV5) is proposed. The reported design requires a smaller number of cells, lower time delay, less design cost, and area. The precision of this 5-in MV is confirmed by the theoretical validation, and the QCADesigner simulation engine is applied for proving the majority circuit with functionality. In addition, an optimized full adder (FAd) circuit is designed to consider the appropriateness of the proposed (MV5). The outcomes exhibit that the designed full adder performs reliably well associated with contemporary multi-layer layouts, and executes well in the case of existing coplanar FAd circuits in all sides. The designed FAd obtains an improvement of 20% in terms of covered extent, 35% in cell extent, 32% in cell intricacy, 58% in delay, and 20% in cost correspondingly, as compared to its best counterpart. QCAPro, an energy valuation tool, is employed to assess the power consumption of the reported designs. The outcomes in this work corroborate that the hardware prerequisite for a QCA design is decreased, and circuits become simpler in gate counts and clock segments by considering the proposed design.

Exact Simulation of a Truncated Lévy Subordinator

A truncated Lévy subordinator is a Lévy subordinator in R + with Lévy measure restricted from above by a certain level b . In this article, we study the path and distribution properties of this type of process in detail and set up an exact simulation framework based on a marked renewal process. In particular, we focus on a typical specification of truncated Lévy subordinator, namely the truncated stable process. We establish an exact simulation algorithm for the truncated stable process, which is very accurate and efficient. Compared to the existing algorithm suggested in Chi, our algorithm outperforms over all parameter settings. Using the distributional decomposition technique, we also develop an exact simulation algorithm for the truncated tempered stable process and other related processes. We illustrate an application of our algorithm as a valuation tool for stochastic hyperbolic discounting, and numerical analysis is provided to demonstrate the accuracy and effectiveness of our methods. We also show that variations of the result can also be used to sample two-sided truncated Lévy processes, two-sided Lévy processes via subordinating Brownian motions, and truncated Lévy-driven Ornstein-Uhlenbeck processes.

The Valuation of Recreational Use of Wetlands and the Impact of the Economic Crisis.

The economic valuation of environmental resources is of great interest to society in general and to public managers in particular. It can promote more sustainable environmental policies, as it clearly shows the high economic value of natural resources. Thus, these valuation tools can provide useful evidence to support such policies by quantifying the economic value associated with the protection of such resources. However, there is an inherent difficulty in the implementation of methods to assess the economic valuation of environmental resources, mainly as a result of the absence of a market and hence a price that explains its social demand. However, both the travel cost method and the contingent valuation method used in this paper offer an approach to the economic values of the recreational services for wetlands. The aim is to analyze whether these values have been influenced by the economic crisis, so two time periods are compared separated for a decade. Results do not show an unequivocal influence between values in both periods, with different behaviors among natural areas, although with a certain tendency to increase in the decade being analyzed.

Urban green infrastructure: A review on valuation toolkits from an urban planning perspective

As a response to increasing urbanization and changing weather and climatic patterns, urban green infrastructure (UGI) emerged as a concept to increase resilience within the urban boundaries. Given that implementing these (semi-) natural solutions in practice requires a clear overview of the costs and benefits, valuation becomes ever important. A range of decision-support tools for green infrastructure and ecosystem services exist, developed for various purposes. This paper reviews the potential of 10 shortlisted and existing valuation tools to support investment decisions of urban green infrastructure. In the assessment, the functionality is regarded specifically from the urban planning and decision-making viewpoint. The toolkits were evaluated on 12 different criteria. After analyzing the toolkits on these criteria, the findings are evaluated on the (mis)match with specific requirements in the urban planning and management context. Secondly, recommendations and guidelines are formulated to support the design of simple valuation tools, tailored to support the development of green infrastructure in urban areas. Approaching the valuation toolkits biophysically and (socio-)economically provides an integral overview of the challenges and opportunities of the capacities of each framework. It was found that most tools are not designed for the peculiarities of the urban context. Several elements contribute to the hampering uptake of GI valuation tools. Firstly, the limited effort in the economic case for green infrastructure remains a burden to use toolkits to compare grey and green alternatives. Secondly, tools are currently seldom designed for the peculiarities of cities: urban ecosystem (dis)services, multi-scalability, life-span assessments of co-benefits and the importance of social benefits. Thirdly, toolkits should be the result of co-development between the scientific community and local authorities in order to create toolkits that are tailor made to the specific needs in the urban planning process. It can be concluded that current tools, are not readily applicable to support decision making as such. However, if applied cautiously, they can have an indicative role to pinpoint further targeted and in-depth analyses.

Quantitative Mitigation Analysis: An ecosystem valuation tool to facilitate planning, restoration and mitigation

Globally, human development has proceeded at a rapid pace for the past several decades for both terrestrial and aquatic/marine environments. Project developers, government decision-makers and the public have had little data regarding the relative values of natural resources, or losses thereof, to facilitate project – and corresponding natural resource takings/ecosystem degradation – decision-making, resulting in intrinsic, but poorly quantified, environmental degradation. Accordingly, we have found that an effective strategy for communicating the value of ecosystems and related natural resources to facilitate smart resource management is to monetize the replacement value of resource losses from development. A number of tools have been developed for monetizing resource value, including quantitative mitigation analysis to address compensating for ecosystem and related natural resource losses due to human development. Quantitative Mitigation Analysis is a methodology developed to assist project developers and regulatory agencies alike with developing or evaluating cost-effective, defensible, quantitatively based compensatory mitigation strategies for developments that result in the taking of, or diminution in quality to, habitats and related natural resources. Quantitative Mitigation Analysis quantifies loss of ecological function from proposed developments and determines the amount of mitigation required as compensation. This paper introduces and describes Quantitative Mitigation Analysis and presents a case example that demonstrates how Quantitative Mitigation Analysis may be applied to construction projects resulting in substantive habitat destruction for the benefit of project developers and the regulatory community alike.

The assessment instrument product of macrame technique in textile craft course

The assessment instrument product of macrame technique in textile craft courses is an instrument that is arranged systematically to determine product accuracy based on established criteria and indicators. The purpose of this study was to make a assessment instrument for evaluating macrame technique products in textile craft courses that can be used as a reference by educators in assessing student work in the form products of macrame technique. Quantitative research methods with research and development (R&D) models through preliminary study stages, the design products of macrame technique, production and manufacturing of macrame product valuation tools, validation, revision, and analysis. The results of the validation stage products of macrame technique valuation the assessment instrument show that the “Very Eligible” is used, judging by the evaluation given by the evaluation experts and material experts with an average percentage given of 100% of the evaluation experts and 98, 21% of material experts include six indicators, namely types of macrame motifs, function of macrame products, design elements, design principles, use of materials, and completion techniques. The assessment instrument product of macrame technique that have been made can be used as a reference in assessing student work in the form product of macrame technique.

Behavioral valuation in the Russian and Western stock markets

Subject. The article discusses changes in qualities of market actors that influence the valuation of assets, behavioral valuation, ranges of the valuation apparatus components. I focus on the practical implementation of the behavioral pricing and a technique for assessing key indicators of behavioral valuation of assets. Objectives. The study measures ranges of certain values adjusting the beta coefficient, which is used to assess the discount rate under the CAPM so as to arrive at the behavioral discount rate and market value of assets in markets with reference to behavioral factors. Methods. The article demonstrates how the behavioral pricing apparatus is applied. I also present some computations, propose benchmarks for assessing the adjustment to components of the discount rate formula for valuation purposes and in line with the emotional tone in stock markets. Results. I devised and implemented the technique for measuring the emotional tone of news and integrated methods for assessing the behavioral beta in accordance with the behavioral CAMP of Hersch Shefrin and Meir Statman. I tested and verified the hypothesis stating that emotions cause the beta coefficient, which is used by irrational investors use, to diverge from the one embedded in the CAPM. The article shows a range of the beta coefficient used by irrational investors from the one embedded in the CAPM. It can be used to assess the market value of shares in a particular case. Conclusions and Relevance. The theory of behavioral valuation of financial assets was put into practice, unveiling the value of the discount rate constituents, which can serve for cost analysts and appraisers. The findings are useful for valuation, corporate finance, public and municipal finance, fiscal issues, stock exchanges. Behavioral valuation tools are especially relevant in case of instability and crisis, a changing market paradigm, market developments, changes in the rate of return and volatility of financial instruments. Behavioral valuation tools supplements and expands the classical one, improves decision-making on value management in modern markets.

The behavioral valuation apparatus

Subject. The article discusses behavioral valuation tools and focuses on the creation of the behavioral valuation methodology. Objectives The study reveals mechanisms for setting behavioral valuation indicators. Methods. I prove it is reasonable to apply the classical theory of valuation to set behavioral valuation tools. The article presents elements and formulae of the classical valuation theory and provides mechanisms for setting respective tools. Results. Mood measurement in news is the backbone of analytical tools described in the article. As part of the mood measurement in news, researchers process all news relating to analyzable companies and measure it by seven-grade scale. I articulated the behavioral beta measurement theory in accordance with the behavioral pricing theory of Hersh Shefrin and Meyer Statman. The article unveils the possible effect of using analytical materials, which complement the decision-making process concerning an investment strategy in the most distant retrospect. I showcase how the fundamental analysis and valuation may help you record a quotation per each day while catching what opinion an analyst had about the quotation at the same point of time, what emotional environment surrounded the pricing process within the analyzable period of time. Conclusions and Relevance. The article presents the method to set behavioral valuation tools, being a step towards pricing based on behavioral valuation. The article showcases the relationship of behavioral valuation tools and classical valuation tools and new valuation models. I devised the framework for practical computations. The findings apply to valuation, corporate finance, public and municipal finance, tax issues, stock exchanges. It is especially important to use behavioral valuation tools during the instability and crisis, change in the market paradigm, market shifts, changes in the return and volatility of financial instruments. Behavioral valuation tools supplements and extends the conventional tools used in traditional finance, makes cost management decisions more informed.

Stochastic-dynamic modelling of farm-level investments under uncertainty

In the light of uncertainties, high initial costs, and temporal managerial flexibility, the real options approach has gained interest as a valuation tool for different types of natural resources management problems. Yet, neither real options valuation method excels under consideration of variability of resource endowments, returns-to-scale and predefined sizes of options. We fill the methodological gap by developing a method based on Monte Carlo simulation, scenario tree reduction, and stochastic programming that is advantageous for valuing real options where timing, scale and interactions among constraints and alternatives matter. The method advances in straightforward conversion of deterministic programming applications based on the classical net present value approach into a real options framework, and in introducing complexity into existing real options models. We illustrate the method with a case study featuring investment options regarding the adoption, coppicing, and conversion of perennial biomass energy production systems.

Evaluación de los índices de calidad del suelo de diversos cultivos en diferentes condiciones topográficas

Soil quality is a valuation tool that facilitates the application of management practices that promote sustainable agronomic systems. The objective is to characterize various land uses based on various physical-chemical properties of the soil and to estimate a soil quality index for various crops in different topographic. The study was carried out in three land uses that were Banana, Young and Ripe Cocoa located in the El Progreso belonging to the Canton of Pasaje-El Oro, with a tropical megathermal climate and an irregular topography. Fifteen soil samples were taken from the stratum (0 to 0.10 cm). An analysis of the physical and chemical variables of the soil was carried out. The variables that presented incompatibilities were put to a principal component analysis to select the minimum data set (MDS) of the components that explained the greatest variability and redundancy was verified from the correlation. The SQI was obtained from the average of the standardized indicators (0 to 1), the higher the SQI value the better the land quality of the land use.