This study examines the value of sporting success of the 2014 Football World Cup in Brazil by using a method that allows measuring non-market goods, the contingent valuation method (CVM). Besides the value of sporting success in form of the willingness to pay (WTP), this study determines what...

This paper explores the relevance of Bastiat's famous distinction between the seen and the unseen consequences of actions to modern debates about cost-benefit analysis. In cost-benefit analysis, the opportunity cost of capital describes the unseen future returns a capital asset generates....

Spanish Abstract: El presente documento muestra la aplicación de una metodología para estimar el precio cuenta de eficiencia de la divisa bajo un tipo de cambio fijo; se presenta como estudio de caso una aplicación a la economía boliviana, para el periodo 2011-2016. Un régimen del tipo de...

It is argued that lending where the overwhelming criterion is the collateral rather than the repayment capability of the project and the borrower is highly likely to be unproductive and will inevitably lead to a transfer of wealth. If this is done on a systematic and massive scale as was the...

Climate change not only impacts production and market consumption, but also the relative scarcity of non-market goods, such as environmental amenities. We study fundamental drivers of the resulting relative price changes, their potential magnitude, and their implications for climate policy in...

In this teaching note I list some suggestions that might be useful to take into account when forecasting financial statements departing from historical data. The ideas presented in this note are the result of advising undergraduate and graduate students in the course Econ 195.96/295.96...

In this work we explain the proper use of perpetuities and the value of them. We consider two cases: calculating the value on period zero when the perpetuity starAI with a given cash flow in period 1 and when it starAI from a cash flow in period zero and it grows in period 1 at a given rate (as...

In this work we explain the proper use of perpetuities and the value of them. We consider two cases: calculating the value on period zero when the perpetuity starts with a given cash flow in period 1 and when it starts from a cash flow in period zero and it grows in period 1 at a given rate (as...

The Constant Growth Model attributed to Gordon (the Gordon Model) is one of the most known and popular models in Corporate Finance. In this work we show that even with adjustments in the calculation of the proper Weighted Average Cost of Capital, WACC, in order to grant that the model with zero...

A social time preference methodology derived from Feldstein (1965) is applied to calculate social discount rates across 167 countries and across time from 2005-2050 for a country case (Brazil). This attempt seeks to compute comparable figures from a homogeneous dataset and provides a...