BACKGROUND EQ-5D-3L valuation studies continue to employ the MVH protocol or variants of MVH. One issue that has received attention is the selection of the states for direct valuation by respondents. Changes in the valuation subset have been found to change the coefficients of the utility function. The purpose of this study was to test the performance of valuation subsets based on orthogonal ex...

Merchants operations involves valuing and hedging the cash flows of commodity and energy conversion assets as real options based on stochastic models that inevitably embed model error. In this paper we quantify how empirically calibrated model errors about the futures price term structure affect the valuation and hedging of commodity storage assets, specifically the storage of natural gas, an i...

One of the important goals of banks as important economic enterprises of any country is to increase economic efficiency. One of the important goals of banks as important economic enterprises of any country is to increase economic efficiency. The classical approach to data envelopment analysis models takes into account the linear valuation function for all indicators. But linear valuation in man...

The aim of this paper is to present a framework to bank valuation based on two generally acceptable valuation models that are not specific to banks: the model of discounted Equity Cash Flow to Equity (ECF) and the model of discounted Residual Income (RI). As emphasized by Koller, Goedhart and Wessels (pp. 663, 2005) [1] in a bestselling book on the valuation of firms, the valuation process of a...

This paper reports on the findings from the application of a recently reported approach to modelling health state valuation data. The approach applies a nonparametric model to estimate the revised version of the Health Utilities Index Mark 2 (HUI 2) health state valuation algorithm using Bayesian methods. The data set is the UK HUI 2 valuation study where a sample of 51 states defined by the HU...

This paper investigates the potential implications of valuation error for the accuracy of investment performance measures of property portfolios. Previous empirical research on valuation error is reviewed It is argued that there is considerable evidence to suggest that valuations are prone to error. A simulation approach is used to model the effects of valuation error on a number of hypothetica...

Prospect theory proposes the hypothesis that people have diminishing sensitivity in valuing increases in the size of monetary outcomes, for both gains and losses. For decision-making under risk, this implies a tendency to be risk-tolerant over losses while being generally risk averse over gains. We offer a neurochemistry-based model of the diminishing valuation sensitivity hypothesis. Specifica...

recently, natural resources economists have turned to valuation and appraisal of the contribution of natural resources to human’s welfare and they have made striking progress in valuing the environmental and ecological services of eco-systems. the present study investigated people’s willingness to pay (wtp) for participation in preservation and reclamation of abuzeidabad desert area through con...

In this paper we present a corporate valuation model, which integrates the different approaches of various fields of finance in a single stochastic framework. We construct a stylized company, which has its explicit production, inventory, export and import activity. In our simulation we analyze the affect of the future volatility of three stochastic factors (production, inflation and exchange ra...