1986 | OriginalPaper | Buchkapitel
The Nonfinancial Business Sector in the Simple Model
verfasst von : Prof. Harland Wm. Whitmore Jr.
Erschienen in: Aggregate Economic Choice
Verlag: Springer Berlin Heidelberg
Enthalten in: Professional Book Archive
Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.
Wählen Sie Textabschnitte aus um mit Künstlicher Intelligenz passenden Patente zu finden. powered by
Markieren Sie Textabschnitte, um KI-gestützt weitere passende Inhalte zu finden. powered by
The nonfinancial business sector presumably formulates its plans at time t so as to maximize its present value. Because the number of its equity shares outstanding at time t is given, this objective is tantamount to maximizing the price which those people who hold its shares at time t could receive for their shares if they were to sell them at time t. But, since all households are viewed as belonging to a single decision-making unit, any trading in existing shares at time t among households presumably fails to affect aggregate behavior. Consequently in this model the price of an existing share at time t remains a shadow price.