Liquidity, the Government Balance Sheet, and the Public Sector Discount Rate
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the impact of e-readiness on ec success in public sector in iran the impact of e-readiness on ec success in public sector in iran
acknowledge the importance of e-commerce to their countries and to survival of their businesses and in creating and encouraging an atmosphere for the wide adoption and success of e-commerce in the long term. the investment for implementing e-commerce in the public sector is one of the areas which is focused in government‘s action plan for cross-disciplinary it development and e-readiness in go...
The Liquidity Discount
Modern finance theory is based on the competitive market paradigm (see Duffie 1992, Jarrow and Turnbull 1996). The competitive market paradigm has two implicit assumptions. The first is that security markets are perfectly elastic—that is, traders act as price takers. Price takers believe that they can buy and sell as many shares of a security as they wish without changing the price. The second ...
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Ren-Raw Chen is a professor in the Finance Area of the Graduate School of Business Administration at Fordham University in New York, NY. [email protected] This article is motivated by the fact that the majority of securities in the financial markets are not frequently traded and hence a discount can be applied to properly ref lect such a deprived privilege. First, only a small fraction of corpo...
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What discount rate should be applied to social investments? It is standard to use the market interest rate, thereby respecting private preferences. We show that application of this “revealed preference” criterion rests on faith, not logic. It is justified only if preferences over all choices, including past choices, are time invariant. The conditions for this to be true are stringent. Under mor...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2019
ISSN: 1556-5068
DOI: 10.2139/ssrn.3477069