Shadow Pricing

0.01 sec.

Shadow Pricing

In a cost-benefit analysis, the assignment of a dollar value to an intangible asset or liability that cannot be sold. Shadow pricing is arbitrary; that is, because these assets and liabilities cannot be sold, and analysts must make an educated guess on their value. An example of shadow pricing occurs in the cost-benefit analysis of building a factory. The analysis must calculate the cost of blight on the neighborhood in which the factory is built. Because there is no way to put a real value on the cost of blight, shadow pricing assigns an arbitrary value to it.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
No references found			The team will tap into existing databases and ecological models and explore the use of economic methods such as shadow pricing, contingent valuation and choice modelling. What price biodiversity? by Davidson, Steve / Ecos It therefore follows that a financial firm that wants to maximise shareholder value cannot use the relatively straightforward capital pricing tools that are available to nonfinancial firms, and must seek an alternative shadow pricing tool to determine whether an investment adds to or detracts from shareholder value. Building a coherent risk measurement and capital optimisation model ... by Shepheard-Walwyn, Tim; Litterman, Robert / Federal Reserve Bank of New York Economic Policy Review 3 For an intuitive discussion of shadow pricing and project evaluation, see Tower (1991). The effects of import quotas on national welfare: comment by Tower, Edward / Southern Economic Journal			sever Severability severally Severally and Jointly Severally But Not Jointly severalty Severance severance damages sewer Seychelles Rupee Seymour Sfratto SG SG&A SGD SGL SGL-1 SGL-2 SGL-3 SGL-4 SH Shadow shadow anchor Shadow Calendar Shadow Open Market Committee Shadow Pricing Shadow Rating Shadow Stock Shadows Shakeout shall Sham Shanghai Stock Exchange Share Share Account Share Broker Share Class Share Draft Share Issued at Discount Share Premium Account Share Purchase Right Share Repurchase Share Repurchase Plan Share Turnover shared appreciation mortgage shared equity mortgage shared tenant service provider Shareholder Shareholder Communications Improvement Act Shareholder Derivative Suit Shareholder Meeting			Shadow of A Hedgehog Shadow of A Martyr Shadow of Amn Shadow of Death Shadow of Infinity shadow of oneself Shadow of the Beast Shadow of the Colossus Shadow of the Day Shadow of the Desert Shadow of the Giant Shadow of the Hegemon Shadow of the Locust Shadow of the Moon Shadow of the Ninja Shadow of the Serpent Riders Shadow of the Wind Shadow Open Market Committee Shadow Open Market Committee Shadow Ops: Red Mercury shadow photometer Shadow Plaque shadow play Shadow price shadow prices Shadow Pricing Shadow puppet Shadow puppetry Shadow ram Shadow ram Shadow Random Access Memory Shadow Rating Shadow Ratings shadow region Shadow Resistance Aura Shadow Ridge High School Shadow Ridge Worship Center Shadow Rock Shadow Rock Shadow roll shadow scattering Shadow Secretary of State Shadow Security Scanner shadow show shadow site Shadow Stalkers Organization Shadow stock Shadow Stock Plan Shadow Stock Plans Shadow Stocks Shadow Strategic Rail Authority Shadow Table Bypass Assist

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.