Valuation of near-market endogenous assets

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dc.contributor.author Fixler, D en
dc.contributor.author Greenaway-McGrevy, Ryan en
dc.date.accessioned 2017-09-10T22:01:40Z en
dc.date.issued 2012-02 en
dc.identifier.citation Bureau of Economic Analysis (BEA) working paper WP2012-5 Feb 2012 en
dc.identifier.uri http://hdl.handle.net/2292/35583 en
dc.description.abstract For many kinds of assets, the growth rate of the real asset stock is a nonlinear function of the economic owner’s decision whether to invest or extract the asset. Examples within the economy are primarily biological assets, both privately owned (such as those found in aquaculature and agriculture) and publicly owned or regulated (such as fish stocks, and in some case, timber stocks.) Optimal exploitation of the asset necessitates that the future possible growth rates in the assetmust be considered when determining the optimal amount of extraction today. In this sense, the level of the asset is determined by the economic owner or regulator and is thus said to be endogenous. This paper considers existing methods for the valuation of these endogenous assets when observed transaction prices are lacking. In particular, we consider valuation in a near-market context, whereby the the economist can only observe income flows from the asset. This near-market approach to asset valuation is particularly important for environmental accounting when transaction prices for the asset or the right to exploit the asset are lacking. We give sufficient restrictions on the revenue and cost structure of the firm in order to permit asset valuation based on average profits. In an emprical application, we combine economic and biomass data to value the US Bering Sea crab fisheries. en
dc.publisher BEA en
dc.relation.ispartofseries Bureau of Economic Analysis (BEA) working paper en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.title Valuation of near-market endogenous assets en
dc.type Report en
dc.rights.holder Copyright: BEA en
pubs.author-url https://www.bea.gov/papers/pdf/valuation_of_near_market_endogenous_assets.pdf en
pubs.place-of-publication Washington, DC en
dc.rights.accessrights http://purl.org/eprint/accessRights/RestrictedAccess en
pubs.subtype Working Paper en
pubs.elements-id 633141 en
pubs.org-id Business and Economics en
pubs.org-id Economics en
pubs.number WP2012-5 en
pubs.record-created-at-source-date 2017-06-28 en


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