Capital Gains and Demand
Posted: Thu Dec 18, 2008 11:10 am
Hi all,
I need some hints on how to model the following.
Let's imagine I want to model the effect on demand for a commodity derived from the expectations of future capital gains (expectations of making profits due to price increase).
We'll have a stock variable for price, we can get the recent rate of price change as ratio between price and recent price.
I have no idea on how to model the capital gain derived from this recent rate of price change and the impact on demand.
Any hints?
Thanks a lot in advance!
G
I need some hints on how to model the following.
Let's imagine I want to model the effect on demand for a commodity derived from the expectations of future capital gains (expectations of making profits due to price increase).
We'll have a stock variable for price, we can get the recent rate of price change as ratio between price and recent price.
I have no idea on how to model the capital gain derived from this recent rate of price change and the impact on demand.
Any hints?
Thanks a lot in advance!
G