Value of Air Force Experience Software Package. A User's Manual
Abstract
In an effort to aid Air Force decision-makers in the analysis of the effects of policy changes and economic conditions on the value of Air Force experience, the Value of Air Force Experience (VAFE) software package was developed. Incorporated in VAFE are three human capital value models that can be used to value officer and enlisted experience at various levels of experience and training: (a) full investment cost method (FICM), (b) stochastic rewards valuation method (SRVM), and (c) expected net present value method (ENPVM). FICM is a measure of the present cost of replacing officer or enlisted personnel at a desired level. Estimation of SRVM values represents a monetary valuation of the future expected services to be provided by officers or enlisted personnel from continued active duty. ENPVM uses the cost aspects of FICM and the value perspective of SRVM to produce an expected present value of future service to be rendered during a given service tenure. Output for the FICM module consists of the service state (defined as year of service), replacement number, service state costs, and full replacement codes. Output for both the SRVM and ENPVM modules includes the service state, service state values and projected SRVM, ENPVM, values. Expanded versions of both the full investment cost model and the expected net present value model, which include military compensation as a maintenance cost, were also incorporated into VAFE.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1991
- Accession Number
- ADA243657
Entities
People
- Brice M. Stone
- Kathryn L. Turner
- Larry T. Looper
- Sheree K. Engquist