Accounting for Unexpected Capital Gains on Natural Assets in Net National Product
نویسنده
چکیده
Failure to separate unexpected capital gains and losses on natural assets from depletion breaks the link between Net National Product (NNP) and sustainability. In addition, for resource rich countries this can lead to large spurious fluctuations in NNP, making it virtually useless for policy purposes. In contrast, when depletion is measured correctly, the link between NNP and sustainability is restored and there is no reason to expect NNP to be any more volatile than GNP. Oil data for Great Britain and Indonesia are used to illustrate the very significant impact that the treatment of capital gains and depletion can have on NNP. (JEL O47, P44, Q32)
منابع مشابه
Defining Ecosystem Assets for Natural Capital Accounting
In natural capital accounting, ecosystems are assets that provide ecosystem services to people. Assets can be measured using both physical and monetary units. In the international System of Environmental-Economic Accounting, ecosystem assets are generally valued on the basis of the net present value of the expected flow of ecosystem services. In this paper we argue that several additional conce...
متن کاملManagers' Social Capital and Financial Performance of Banks
Given the present era, the major share of resources attraction and allocation in the banks occurs in connection with society. As such, managers need social capital as well as physical and human capital in order to attain organizational goals, provide the ground for competition and pave the way for the development of their respective organization. Managerial social capital is an asset in a socia...
متن کاملThe Relationship between Earning Management and Capital Structure
This paper analyzes the relationship between capital structure and earning management. For analysing we used 119 non-financial companies that listed in Tehran Stock Exchange from 2000 to 2008. The researchers will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of manageme...
متن کاملSavings rules and sustainability: selected extensions
The concept of ‘genuine’ saving, the net saving rate in a national accounting framework encompassing resource depletion and environmental degradation, is extended to include technological change, resource imports, and critical natural capital in the form of rainforests. In all cases, measuring negative rates of genuine saving on the optimal path implies non-sustainability of the path. Questions...
متن کاملMarket Competition, Earnings Management, and Persistence in Accounting Profitability Around the World
We examine how cross-country differences in product, capital, and labor market competition, as well as earnings management affect mean reversion in accounting return on assets. Using a sample of 48,465 unique firms from 49 countries, we find that accounting returns mean revert faster in countries where there is more product and capital market competition, as predicted by economic theory. Countr...
متن کامل