The margin system is a clearinghouse’s first line of defense against the default risk. From the perspectives of a clearinghouse, the utmost concern is to have a prudential system to control the default exposure. Once the level of prudentiality is set, the next concern is the opportunity cost to the investors. It is because high opportunity cost discourages people from hedging futures and thus d...

We empirically study how opportunity cost of entrepreneurship conditions entrepreneurial performance. We assume that entrepreneurs in high tech startups aim to “cash out”, by being acquired on favorable terms or through an IPO. Entrepreneurs with few alternative opportunities will tend to linger on as long as they can in the hopes of cashing out, whereas those with plentiful opportunities have ...

As the coronavirus disease 2019 (COVID-19) pandemic continues to unfold there is an untold number of trade-offs being made in every country around the globe. The experience in the United Kingdom and Canada to date has not seen much uptake of health economics methods. We provide some thoughts on how this could take place, specifically in three areas. Firstly, this can involve understanding the i...

The paper tests ‘twoalternative specifications for the opportunity cost of time in travel cost models. The standard travel cost survey design is enriched to include a contingent valuation type question about peoples’ willingness to accept compensation to forgo a precisely defined recreational experience. It is hypothesized that individually revealed value of time more appropriately reflects the...

In this article, demand equations for import of consumer, intermediate and capital goods for the period 1971(2) to 1999(1), is estimated and analyzed, using the ARDL Pesaran & Shin method. The results show that the behavior of the different categories of imported goods in Iran is best explained by the parallel market exchange rate, implying this rate is a closer approximation fir the opportunit...

Unsustainable land uses present many challenges for securing ecosystem service provision. It is also difficult to estimate the cost of a transition to more sustainable land-management practices for individual landholders. The main cost to landholders is the opportunity costs, the income foregone when changing land use for continued or enhanced ecosystem service provision. Thus accurate estimati...

BACKGROUND Cost-effectiveness analysis can guide policymakers in resource allocation decisions. It assesses whether the health gains offered by an intervention are large enough relative to any additional costs to warrant adoption. When there are constraints on the health care system's budget or ability to increase expenditures, additional costs imposed by interventions have an "opportunity cost...

How Opportunity Costs Decrease the Probability of War in an Incomplete Information Game This paper shows that the opportunity costs resulting from economic interdependence decrease the equilibrium probability of war in an incomplete information game. This result is strongly consistent with existing empirical analyses of the inverse trade-conflict relationship, but is the opposite of the conclus...