... decrease the effects of the tax rate increase on the quantity of labour supplied and the quantity of leisure demanded. Estimates of the marginal cost of public funds: In Australia and other ... estimate of the value of information. The value of information rises as:• the initial capital cost, K, rises;• the return in the low price environment, RL, falls;• the probability of a low ... the return in the current period, R0, falls;• the interest rate falls. The ‘bad news principle’ - the level of the return in the high price environment, RH, does not affect the value of...