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Absolute Interest

What is 'Absolute Interest'

Total and complete ownership of an asset or property. An individual with an absolute interest has both a legal and beneficial possession of said asset or property. The term "absolute interest" indicates that the owner's interest is not diluted by another party's ownership, nor is it dependent on conditions that must be fulfilled.

Explaining 'Absolute Interest'

An absolute interest in an asset or property gives the owner full entitlement to the benefits and privileges that accrue from such ownership. It is the opposite of a contingent interest, which confers an ownership interest only upon the fulfillment of certain conditions or the occurrence of specific circumstances.


Further Reading


Constant absolute risk aversion preferences and constant equilibrium interest rates
onlinelibrary.wiley.com [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

The importance of deviations from the absolute priority rule in Chapter 11 bankruptcy proceedingsThe importance of deviations from the absolute priority rule in Chapter 11 bankruptcy proceedings
www.jstor.org [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

Ex ante costs of violating absolute priority in bankruptcyEx ante costs of violating absolute priority in bankruptcy
onlinelibrary.wiley.com [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

Financial links around the Pacific Rim: 1982-1992Financial links around the Pacific Rim: 1982-1992
ageconsearch.umn.edu [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

Bank branch efficiency evaluation by means of least absolute deviations and DEABank branch efficiency evaluation by means of least absolute deviations and DEA
www.emerald.com [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

Absolute priority rule violations and risk incentives for financially distressed firmsAbsolute priority rule violations and risk incentives for financially distressed firms
www.jstor.org [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

Fitting Term Structure of Interest Rates with Cubic Spline Function Based on Least Absolute Deviations Regression <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-SLTJ201001024.htm' />Fitting Term Structure of Interest Rates with Cubic Spline Function Based on Least Absolute Deviations Regression [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-SLTJ201001024.htm'>PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

The economics of conflicts of interest in financial institutionsThe economics of conflicts of interest in financial institutions
www.sciencedirect.com [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …

Absolute and relative risk aversion: An experimental studyAbsolute and relative risk aversion: An experimental study
link.springer.com [PDF]
… with endogenous stochastic production and establishes that the equilibrium interest rate can … production economy when the preferences are represented by constant absolute risk aversion … compared and contrasted with related contributions in the financial economics literature …



Q&A About Absolute Interest


Who has absolute interest in an asset or property?

An individual with absolute interest has both a legal and beneficial possession of said asset or property.

What is absolute interest?

Absolute interest is total and complete ownership of an asset or property.

What are the benefits of having absolute interest?

The owner's interests are not diluted by another party's ownership, nor are they dependent on conditions that must be fulfilled.

What is the principle of absolute advantage?

The principle of absolute advantage refers to the ability of a party to produce a good or service more efficiently than its competitors.

Who did Adam Smith say would gain from free trade and specialization according to their absolute advantage?

All nations would gain simultaneously if they practiced free trade and specialized in accordance with their absolute advantage.

How does one acquire absolute interest in an asset or property?

One acquires absolute interest through purchase, inheritance, gift, etc.

In what context was Adam Smith describing the principle of absolute advantage?

He described it in the context of international trade.

What does labor have to do with this concept?

Labor is used as an example for input.