Thursday, 7 June 2018

Conventions and the value of financial assets

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John Maynard Keynes
Source: Wikimedia Commons
For mainstream economists, the prices of financial assets like shares and derivatives are determined by objective assessments of the future revenue streams that the holder of the asset is entitled to. But it is far more plausible to see them as the outcome of interactions between a variety of different financial valuation conventions, or lay theories of value as I called valuation conventions in my earlier post. This post reflects on the contributions of John Maynard Keynes, André Orléan and Jens Beckert to explaining how valuation conventions influence financial asset values.

Sunday, 4 March 2018

Towards a new theory of value

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Source: Wikimedia Commons

The value of a thing, as I argued in my last post, is the price it ought to exchange at. Different people may assess the value of a thing differently, but to reach agreement on values, they need to offer explanations of those assessments in terms that other people can find reasonable. Usually this means that they will need to invoke socially acceptable standards of value to justify their assessments.

Saturday, 3 March 2018

What is value?

Economics needs a theory of value, but the existing theories are thoroughly inadequate. In this post I briefly introduce the key elements of an alternative theory. This is the first output from a one year project on the construction of financial value, which has been kindly funded by the Independent Social Research Foundation

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Source: R M Media Ltd