Advanced Search
MyIDEAS: Login

Formalization of Investment Process in Portfolio Game

Contents:

Author Info

  • Martin Jančar
Registered author(s):

    Abstract

    Portfolio space (first time published at [1]) enables us to formalize economic activities in bookkeeping framework. In paper [2] author has defined production vector Y and new type of asset A2, that represent human work done during production of one new product. In paper [3] portfolio play was emiched about relative price of money interest rate and also unit labor cost was introduced. Some restriction on fraction demand / supply was introduced. Income constraint was main tool during the proof. In paper [4] some aspects of foreign trade were formalized. Relative price of money against other currency was defmed. In this paper author has defined some key vectors of investment decision process. The process is decomposed into parts: 1) of accumulating own resources, 2) of borrowing additional resources, 3) of investing into productive technology, 4) of production and payment of interest due, 5) repayment of principal. The flow/cost analysis was presented in simplified macro-form. In this paper author takes into accounts only 3 players because it is sufficient for this partial study. They are bank, customer (working for employers and buying its products) and investor (that both fmances project and produces goods). Seven assets are recognized. This time money, human work done, interest rates are simultaneously in the play. Effect of old and new product is described. They are both separately specified by type of asset. Analysis presented there is very close to that publishing at [2]. The financial resources needed for purchase of new technology (in this article technology is presented like investment) comes from two sources: own resources (for example this can be obtained from depreciation) and credit. In this study is for the first time simulated debt repayment with k installments. Process of paying back debt is so going through k+ 1 period. Chapter 3 highlights some phenomenon, important for investment decision. Also risk connected with investing is discussed. Competition with the old product and proper price setting is briefly discussed.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://ces.utia.cas.cz/bulletin/index.php/bulletin/article/view/87
    Download Restriction: no

    Bibliographic Info

    Article provided by The Czech Econometric Society in its journal Bulletin of the Czech Econometric Society.

    Volume (Year): 7 (2000)
    Issue (Month): 11 ()
    Pages:

    as in new window
    Handle: RePEc:czx:journl:v:7:y:2000:i:11:id:87

    Contact details of provider:
    Email:
    Web page: http://ces.utia.cas.cz
    More information through EDIRC

    Related research

    Keywords: Portfolio; investment; interest rate payment; disequilibrium; output gap;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:czx:journl:v:7:y:2000:i:11:id:87. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jozef Barunik).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.