The Review of Economics and Statistics196446(4), 439
In a recent issue of this REVIEW, twelve papers were presented on the subject of government budgetary concepts.' Several authors indicated that the measuring of corporate income taxes on an accrual basis in the National Income and Product Accounts (NIPA) was to be preferred to measurement on a collection and payment basis.2 Among their reasons was the position that . . it [is] . generally . . . agreed that much of the economic impact of corporation income taxes occurs at the time the liability is accrued, rather than when the payment is actually made. . .. 3 The NIPA budget deals with income determining flows and does not record the financial asset and liability positions of the sectors.4 However, the income determining corporate income tax accrual in the NIPA budget is also the gross increase in a financial liability of the corporate sector. This note will suggest, therefore, that gross additions to the accrual tax flows cannot be meaningfully interpreted alone but must be modified by tax payments; that is, income determining data must be modified by changes in assets and liabilities when used to measure the contra-cyclical impact of corporate taxes.5 If accruals are rising faster than payments, the firm, in effect, has received an interest-free loan from the government to finance assets or repay debts. Such a situation is clearly expansionary (from both microand macroeconomic points of view) and parallels increased sources of funds (to the firm and the corporate sector) from other sources, e.g., bank loans, trade credit, etc. On the other hand, if payments exceed accruals, the firm and the corporate sector are reducing a debt and must either contract assets, borrow from another source, or expand equity. Such a situation is contractive in the same sense that the calling of a loan, the arrival of the due date of a security, or perhaps even the tightening of credit is contractive. In both situations, taxes affect profits at the time of accrual, but funds available to the firm increase in the former case and decrease in the latter. The upper panel of chart 1 shows flow of funds data (seasonably adjusted totals at annual rates) for corporate profits before tax (after inventory valuation adjustments), tax accruals on profits, and tax payments on profits. The lower panel of chart 1 shows the difference between accruals and pay-
A natural generalization of least squares is proposed to estimate parameters in simultaneous linear equations. Full-information maximum likelihood is shown to be identical with this generalization. The extent to which other estimators deviate from the generalization is discussed. A paradox of Strotz is resolved, and application of canonical correlation theory to structural equations is indicated. 1. SUMMARY THIS PAPER compares various estimators of the parameters of linear simultaneous
The article discusses the contrast between North Americans and Latin Americans in appraising the aspects of management. For the most part, U.S. business practitioners and business academicians agree that management is party a science and partly an art. Management generally is considered an art in Latin America. A discussion is presented about management training resources in Latin American and the differences between the education and training of executives in the United States and Latin America.
Abstract Investors, creditors, and managers are all interested in financial analysis. While they may have different goals in mind and may utilize a number of different methods, the most important methods used have one element in common. This is comparison. The actual data for the firm under analysis are compared to some standard in an attempt to measure the desirability of the results for this company. These standards may be from internal sources, such as a budget or past data concerning operations or external sources, such as results of other companies, in the same industry. One of the most common forms of comparative financial analysis involves the use of various ratios drawn from the financial statements. Many accountants discount the value of ratios used in comparative financial analysis. However, the fact remains that a great number of analysts do utilize such ratios. The purpose of the article is to examine the effect which the last-in, first-out method of inventory valuation may have on the uniformity of financial statements and thus the comparability of the ratios which may be drawn from these statements.
I. Introduction, 355. — II. A model with two commodities, 359. — III. Growth paths and proportional growth paths, 361. — IV. Geometrical representation of the technology, 362. — V. Representation of proportional growth, 366. — VI. Determination of a maximal proportional growth path, 367. — VII. A price system sustaining a given von Neumann path, 370. — VIII. Is any proportional growth path sustained by a price system maximal? 374. — IX. A numerical example, 375. — X. The turnpike conjecture, 377. — XI. Access to or from the von Neumann path, 378. — XII. Rates of growth in von Neumann value, 379.— XIII. “Profit” effects of an interest rate reduction, 382. — XIV. A variant of Radner's turnpike theorem, 383. — XV. A catenary property of maximal growth paths, 385. — XVI. The turnpike conjecture in other cases, 387. — XVII. Concluding remarks, 391.
Journal Article Further Comment Get access Robert C. Lind Robert C. Lind Stanford University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 78, Issue 2, May 1964, Pages 336–345, https://doi.org/10.2307/1879333 Published: 01 May 1964
Journal Article A Note on the Growth of Nonbank Financial Intermediaries and Interest Rate Determination Get access Edward C. Ettin Edward C. Ettin Duke University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 78, Issue 4, November 1964, Pages 649–652, https://doi.org/10.2307/1879663 Published: 01 November 1964
Abstract In the article, the author focuses on stockholders, considered to be the minority group in business enterprises in the U.S. Stockholders are minor capitalists whose livelihood depends largely on the prudent and profitable investment of their limited savings. This group has now shrunk in numbers and diminished in importance. This group enjoys neither the security of a liberally-financed corporate pension plan, nor the beneficence of social-welfare hand-outs to the indigent. The author presents his thesis that the individual saver or the private accumulator of small amounts of capital is unduly disadvantaged by present-day conditions in the business sector. A stockholder faces a task of extraordinary difficulty in selecting and safeguarding his investments which stems from the neglect of his interests by those best situated to keep him properly informed namely, the independent accountants who certify to the financial statements of enterprises to which he commits his funds. For them, he is in truth the forgotten man.