From a forthcoming publication (“Estimating the Private Value of Financial Statement Statistics”), we know that…
On the Value of Information as Personal Wealth
You would willing to pay between 13% and 23% of your personal wealth for continuous access to undisclosed financial information: that’s an estimate on the private value of information as a percentage of personal wealth according to a study by Ohad Kadan and Asaf Manela published in the Review of Financial Studies (Estimating the Value of Information, open version ). And by using The Secure Spreadsheet, you would increase said private value multiple times instead of losing it in a single use: The Valuation of Secrecy and the Privacy Multiplier further complements this study by considering the protection of information rents and the price impact of the diffusion of information. More fascinating statistics from this study:
- Information loses around 98% of its value when it becomes public.
- Key macroeconomic indicators ordered by their value (from highest to lowest): employment, initial jobless claims, pre-FOMC rate decision, FOMC rate decision, GDP, consumer comfort index, and mortgage applications.