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A NEOCLASSICAL MEASURE OF PROFIT: AN EXTENSION FOR UNCERTAINTY
Author(s) -
Scapens Robert W.
Publication year - 1983
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1983.tb00441.x
Subject(s) - certainty , economics , measure (data warehouse) , profit (economics) , mathematical economics , extension (predicate logic) , econometrics , microeconomics , mathematics , computer science , programming language , geometry , database
This note extends the economic model used by Scapens (1978 and 1979) to develop a neoclassical measure of profit. A certainty equivalent formula in a multiperiod framework is used to introduce uncertainty into the analysis. It is demonstrated that the measure of economic profit developed in earlier papers is not crucially dependent upon the assumption of certainty.