- Title Pages
- Dedication
- Preface
- 1 Modern Value Quandaries
- 2 Theories of Value
- 3 The Failure of the Neoclassical Investment Rule
- 4 The Nature of the Firm
- 5 The Organization and Scale of Private Business
- 6 Accounting for the Firm
- 7 VALUE IN CLASSICAL ECONOMICS
- 8 VALUE IN NEOCLASSICAL ECONOMICS
- 9 MODERN RECURSIVE EQUILIBRIUM AND THE BASIC PRICING EQUATION
- 10 ARBITRAGE-FREE PRICING IN COMPLETE MARKETS
- 11 Portfolio Pricing Methods
- 12 Real Options and Expanded Net Present Value
- 13 Traditional Valuation Methods
- 14 PRACTICAL APPLICATION OF THE INCOME METHOD
- 15 THE VALUE FUNCTIONAL: THEORY
- 16 The Value Functional: Applications
- 17 APPLICATIONS: FINANCE AND VALUATION
- 18 Applications: Law and Economics
- Appendix A Key Formula and Notation Summary
- Appendix B Guide To The Solutions Manual
- Appendix C Description of Subject Companies
- References
- Index
VALUE IN CLASSICAL ECONOMICS
VALUE IN CLASSICAL ECONOMICS
- Chapter:
- (p.90) (p.91) 7 VALUE IN CLASSICAL ECONOMICS
- Source:
- The Economics of Business Valuation
- Author(s):
Patrick L. Anderson
- Publisher:
- Stanford University Press
The author begins a review of 10 different theories of value with this chapter on classical economic thought. The labor theory of value dates as least as far back as Adam Smith and the 18th century, and may have independently been articulated by the Indian sage Kautilya in the 3rd century BC. The author observes that the labor theory fails to explain the actual determination of prices in a market economy, but still provides valuable insight into human behavior in the modern economy.
Keywords: classical economics, Adam Smith, Kautilya, David Ricardo, labor theory of value, Beaver and Deer example, intrinsic value, value in exchange
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- Title Pages
- Dedication
- Preface
- 1 Modern Value Quandaries
- 2 Theories of Value
- 3 The Failure of the Neoclassical Investment Rule
- 4 The Nature of the Firm
- 5 The Organization and Scale of Private Business
- 6 Accounting for the Firm
- 7 VALUE IN CLASSICAL ECONOMICS
- 8 VALUE IN NEOCLASSICAL ECONOMICS
- 9 MODERN RECURSIVE EQUILIBRIUM AND THE BASIC PRICING EQUATION
- 10 ARBITRAGE-FREE PRICING IN COMPLETE MARKETS
- 11 Portfolio Pricing Methods
- 12 Real Options and Expanded Net Present Value
- 13 Traditional Valuation Methods
- 14 PRACTICAL APPLICATION OF THE INCOME METHOD
- 15 THE VALUE FUNCTIONAL: THEORY
- 16 The Value Functional: Applications
- 17 APPLICATIONS: FINANCE AND VALUATION
- 18 Applications: Law and Economics
- Appendix A Key Formula and Notation Summary
- Appendix B Guide To The Solutions Manual
- Appendix C Description of Subject Companies
- References
- Index
