For one–period projects under certainty, the notion of Net Present Value (NPV) formally translates the notion of economic profit, where the discount rate is the cost of capital. Under uncertainty, the cost of capital is the expected rate of return of an equivalent-risk alternative that the investor might undertake and is often found by making recourse to the Capital Asset Pricing Model. This pa...

This paper presents two studies on narrow bracketing and myopic loss aversion. The first study shows that the tendency to segregate multiple gambles is eliminated if subjects face a certainty equivalent or a probability equivalent task instead of a binary choice. The second study argues that the behavioral differences previously attributed entirely to myopic loss aversion are partly because lon...

according to resource curse theory, not only the revenues from selling natural resources do not result in economic growth, but also have some unpleasant effects on economy. this study shows that natural resources cannot be considered curse by itself , but it is the management of revenues which is important. the foreign reserves fund was established to control the effects of oil price volatiliti...