When countries attempt to stabilize annual inflation rates that are greater than 40 percent, the domestic stock market appreciates by 24 percent on average. The present value of the long-run benefits to shareholders of reducing high inflation outweighs the present value of the short-run costs. In contrast, the average market response is economically weak and statistically insignificant if the p...

Interaction Value Analysis is a modeling methodology originally intended to illustrate how full connectivity between members of an organization affects the shape of the organization. Technology is already transforming workplaces into fully-connected networks by providing instant access, subject only to the availability of the communication participants, as well as perfect knowledge of the abili...

The present value model says that an asset's price equals the sum of current and future discounted expected future payoffs from ownership of the asset. I explore the limits of the present value model by testing its ability to explain the pricing of storable commodities. For commodities the payoff stream is the convenience yield that accrues from holding inventories, and it can be measured direc...

The aim of this paper is to apply the method proposed by Denuit, Genest and Marceau (1999) for deriving stochastic upper and lower bounds on the present value of a sequence of cash flows, where the discounting is performed under a given stochastic return process. The convex approximation provided by Goovaerts, Dhaene and De Schepper (2000) and Goovaerts and Dhaene (1999) is then compared to the...

Despite the increasing popularity of the concept of ‘public value’ within both academic and practice settings, there has to date been no formal review of the literature on its provenance, empirical basis, and application. This paper seeks to fill this gap. It provides a critical introduction to public value and its conceptual development before presenting the main elements of the published lite...

Decision making has always been a difficult process, based on various combinations if objectivity (when scientific tools were used) and subjectivity (considering that decisions are finally made by people, with their strengths and weaknesses). The IT revolution has also reached the areas of management and decision making, helping managers make better and more informed decisions by providing them...