The next section discusses the implicit cost
borne by taxpayers of FDIC insurance.
That forgone wages are part of the implicit cost
of obtaining a college education is surely one of the most familiar of these examples to professors of introductory economics.
In addition to estimating the fixed cost of borrowing from the discount window, we are also interested in determining whether this implicit cost
exhibits any gradual changes over time.
If new perceptions of reasonableness were combinations of prior beliefs and Congress's standard, then the further a CEO's expected compensation fell below $1 million, the greater the reduction in the firm's marginal implicit cost
of executive compensation when Congress enacted the $1 million standard.
The implicit cost
of the RTC's loss position during each quarter is estimated on an institution-by-institution basis, with adjustments made for the portion of the quarter an institution was held in conservatorship, then aggregated to arrive at the values show on line 3.
RECLAIM] because the market value of RTCs represents a large implicit cost
to that firm.
hj~ be the implicit cost
of time spent producing |z.
The bank may not wish to incur large marginal implicit cost
due to its past borrowing from the Fed.
I also propose a more precise definition for the term implicit cost
, which should both clarify how to determine its value, and that this term represents just the best forgone option (and not all forgone options), and I discuss variants in presentation and applications.
Sometimes however, investors remain concerned about the implicit cost
involved in accessing alternative sources of liquidity.
The reason that we did not point this out in our paper is that our model is static and hence there is no implicit cost
of holding money;(2) notice that, in arguing for the Friedman rule, Gokcekus and Tower use essentially intertemporal arguments.