Econometrica Vol. 89 No. 1 2021
The Econometric Society Annual Reports Report of the Treasurer
Abstract
2019 THROUGH MID-2020 SAW A PERIOD in which management decisions made by the Executive Committee the previous two years began to produce positive financial results, leaving the Econometric Society in its strongest financial position yet. The new royaltybased contract with Wiley Publishers combined with membership fee enhancements, robust membership drives, and solid investment returns even during a tumultuous market, put the Society in good shape to weather any future challenges. The new contract between Wiley and the Econometric Society went into effect in 2019. In 2019, the Society earned total institutional journal revenues of $721,383 compared to $698,010 the previous year. However, both figures include deferred revenues no longer accruing as a result of the new royalty-based contract. For 2019, real institutional publishing revenues came to $509,613 for the first full year under the new contract while $211,770 in deferred revenues was carried over from previous years. In exchange, henceforth Wiley will cover the cost of printing, distributing and disseminating the Econometric society journals. Unfortunately, 2019’s promising year-end results are unlikely to continue through 2020 given the onset of COVID-19. Universities and research centers’ libraries (all of which make up the bulk of institutional sales) all project no or very low growth for the remainder of 2020 so future institutional revenues are expected to compress. Membership revenues fared well too. In 2019, the Society added additional subscription rate options to its membership categories; increased rates across all categories; and for the first time added an auto-renew option for membership purchases. As a result of these changes, the number of year-end memberships (see the Secretary’s report for membership statistics) and total membership revenues increased substantially. Membership revenues jumped from $585,349 at end-of-year 2018 to $680,253 at end-of-year 2019, an increase of $94,904. The Society continued its relationship with Wells Fargo for its day-to-day banking and credit card processing, and with Vanguard to manage its investments. At the same time, the Society’s Investment Committee adjusted its investment strategy and saw gains emerge. By end-of-year 2019, the Society’s Central office investment holdings rose from end-of-year 2018 holdings of 2,357,604 to 2019 end-of-year holdings of $3,331,812, although part of the increase resulted from the transfer of $500,000 from Wells Fargo. The regional account totals, however, went from 2018 combined holdings of $613,413 to 2019 end-of-year holdings of $544,590. While the European region holds the majority of regional funds, Africa, Asia, Australasia, and Latin America’s regional accounts are subsidized by annual grants available to help with activities for young economists. A fundraising initiative for young African scholars was launched in June 2019, bringing in close to $30,000 through generous donations from the Society’s fellows and general membership base. The Society will continue to grow its Fund for African Scholars. The
- DOI
- 10.3982/ecta891treas
- Volume
- 89
- Issue
- 1
- Pages
- 523-531
- Language
- en
- Sources
- crossref semanticscholar openalex