Disproving the Hall-Jorgenson Capital Gain
4 Pages Posted: 7 Dec 2017
Date Written: December 2, 2017
Abstract
This paper unfolds and disproves the capital gain theory by Hall and Jorgenson (1967). It points out that investment valuation is a constant and cannot be differentiated, it also distinguishes the difference between valuation and residual value, and reveals the double counting mistake by Hall and Jorgenson. Finally, it shows that they have mistaken capital rental for capital gain, and discovers their tautological mistake.
Keywords: Cost of Capital, Capital Gain
JEL Classification: D24, E60
Suggested Citation: Suggested Citation
Choi, Hak, Disproving the Hall-Jorgenson Capital Gain (December 2, 2017). Available at SSRN: https://ssrn.com/abstract=3081394 or http://dx.doi.org/10.2139/ssrn.3081394
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