I have ignored reasons that might justify lower discount rates or higher GDP adjustments for China mainly because the purpose of this essay is to explain why the U.S.
multiple is so much higher than China's, and of course these reasons exist, but I think whatever the correct ratio should be, there is no question that advanced economies always justify higher
multiples than developing economies because they tend to be economically more diversified and politically more
stable, and they usually have institutions, including clearer legal and regulatory frameworks, more sophisticated capital allocation processes, less rigid financial systems, and smaller
state sectors (which make smooth adjustment, one of the most valuable and undervalued components of long - term growth, more likely).
Public education revenue has been insulated from the direct effects of economic ups and downs by a number of politically constructed conditions, including a privileged legal status in most
state constitutions,
multiple state and federal revenue sources, and
stable tax support, such as property taxes, at the local level.
Observations suggest that the present day ocean resides in a bistable regime, thereby allowing for
multiple equilibria and a
stable «off»
state of the AMOC (Hawkins et al., 2011).