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Measuring internal rates of return: The transfer function approach

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Abstract

Although the internal rate of return (IRR) concept is recognized as the most relevant measure of economic return, in practice the accounting rate of return (ARR) is used instead because of the relative ease with which it can be obtained. This paper presents a method whereby the IRR can be estimated using linear systems' transfer functions.

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Authors and Affiliations

  1. Department of Economics, University of Crete, 74100, Rethymno, Crete, Greece

    A. P. Xepapadeas (Associate Professor of Economics)

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  1. A. P. Xepapadeas
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Xepapadeas, A.P. Measuring internal rates of return: The transfer function approach. Empirical Economics 16, 267–285 (1991). https://doi.org/10.1007/BF01206276

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  • DOI: https://doi.org/10.1007/BF01206276

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