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Profits for Economists

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  • Thomas Karier

Abstract

There is no single best estimate of profits because different purposes require measures. For example, profits in national income should be different than profits in financial statements. But given these differences, there are certain economic standards that should apply to all profit measures. These standards are described and then used to evaluate the appropriateness of several currently available measures of profits including those reported by the National Income and Product Accounts, Internal Revenue Service, Quarterly Financial Report, Compustat, and Business Week.

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  • Thomas Karier, "undated". "Profits for Economists," Economics Working Paper Archive wp_89, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_89
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    References listed on IDEAS

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    1. John B. Shoven & Jeremy I. Bulow, 1975. "Inflation Accounting and Nonfinancial Corporate Profits: Physical Assets," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 6(3), pages 557-612.
    2. Philip Cagan & Robert E. Lipsey, 1978. "The Financial Effects of Inflation," NBER Books, National Bureau of Economic Research, Inc, number caga78-1.
    3. Fraumeni, Barbara M & Jorgenson, Dale W, 1980. "Rates of Return by Industrial Sector in the United States, 1948-76," American Economic Review, American Economic Association, vol. 70(2), pages 326-330, May.
    4. John B. Shoven & Jeremy I. Bulow, 1976. "Inflation Accounting and Nonfinancial Corporate Profits: Financial Assets and Liabilities," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(1), pages 15-66.
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