Comparing GAAP With NIPA Earnings

2019 ◽  
pp. 0148558X1987808 ◽  
Author(s):  
Ilia D. Dichev ◽  
Jingran Zhao
Keyword(s):  
National Income ◽  
Close Relation ◽  
Early Years ◽  
Real Economy ◽  
Generally Accepted Accounting Principles ◽  
Economic Downturns ◽  
Accounting Rules ◽  
Corporate Profits ◽  
Over Time ◽  
Significant Factors

The U.S. Bureau of Economic Analysis produces a measure of aggregate corporate profits (national income and product accounts [NIPA] earnings), which is an integral component of the accounting for gross domestic product (GDP). Interesting features of NIPA earnings include consistent accounting rules over time and determination with little or no managerial discretion. Thus, NIPA earnings provide a useful benchmark for generally accepted accounting principles (GAAP) earnings, especially in parsing out the effects of real-economy versus the accounting in explaining the documented temporal increase in volatility and decline in persistence of GAAP earnings. We find that GAAP and NIPA earnings are closely related in the early years, with similar means and standard deviations, and with earnings changes correlating at .90 during 1950-1983. This close relation substantially deteriorates, however, during the second half of the sample period, 1984-2016. Although the behavior of NIPA earnings remains roughly the same, the volatility of GAAP earnings increases 10-fold, and the correlation between GAAP and NIPA earnings changes falls to .39. Additional tests reveal that the increase in the volatility of GAAP earnings is mostly due to rapid earnings reversals, especially the effect of large transient items during economic downturns. The frequency and severity of such downturns, however, are roughly the same across the two periods. In addition, there is little change in the properties of aggregate cash flow from operations and revenue over time. Overall, this evidence suggests that in addition to changes in the real economy, changing GAAP rules and their application are significant factors in the changing properties of GAAP earnings.

Modelling the UK Banking Sector

2010 ◽  
Vol 214 ◽  
pp. F67-F72
Author(s):  
Ray Barrell ◽  
Simon Kirby ◽  
E. Philip Davis
Keyword(s):  
Banking Sector ◽  
National Income ◽  
Financial System ◽  
Financial Sector ◽  
Equation Model ◽  
Dsge Models ◽  
Real Economy ◽  
Equilibrium Models ◽  
Return To Equilibrium ◽  
Dynamic Stochastic

The financial crisis that emerged during 2007 and overwhelmed the financial system in late 2008 also brought to the fore some of the obvious failings of the style of modelling that had been fashionable in central banks in the previous decade. The shift to Dynamic Stochastic General Equilibrium models (DSGE) of whatever sort left no real scope for money and financial markets to have an impact on the real economy. This was in part because equilibrium models based on theory are unlikely to be designed to cope with a period of disequilibrium, which is when the financial system becomes important in macroeconomics. DSGE models come in various guises, and it was common to operate with a three-equation model with demand, supply and the interest rate as the equations. It is hard to see how the financial sector could fit into this, or what use it would be even if it were included. Larger DSGE models that respect the national income identity are easier to augment with a financial sector; but even that developed by the US Federal Reserve (see Edge, Kiley and Laforte, 2010) tends to return to equilibrium rather more rapidly than seems reasonable.

scholarly journals How Far Has China’s Urbanization Gone?

2018 ◽  
Vol 10 (8) ◽  
pp. 2953 ◽  
Author(s):  
Yiping Xiao ◽  
Yan Song ◽  
Xiaodong Wu
Keyword(s):  
Urban Development ◽  
Spatial Autocorrelation ◽  
Spatial Data ◽  
Spatial Association ◽  
Early Years ◽  
Spatial Data Analysis ◽  
Rapid Urbanization ◽  
Urban Rural ◽  
Global Spatial Autocorrelation ◽  
Over Time

China’s rapid urbanization has attracted wide international attention. However, it may not be sustainable. In order to assess it objectively and put forward recommendations for future development, this paper first develops a four-dimensional Urbanization Quality Index using weights calculated by the Deviation Maximization Method for a comprehensive assessment and then reveals the spatial association of China’s urbanization by Exploratory Spatial Data Analysis. The study leads to three major findings. First, the urbanization quality in China has gradually increased over time, but there have been significant differences between regions. Second, the four aspects of urbanization quality have shown the following trends: (i) the quality of urban development has steadily increased; (ii) the sustainability of urban development has shown a downward trend in recent years; (iii) the efficiency of urbanization improved before 2006 but then declined slightly due to capital, land use, and resource efficiency constraints; (IV) the urban–rural integration deteriorated in the early years but then improved over time. Third, although the urbanization quality has a significantly positive global spatial autocorrelation, the local spatial autocorrelation varies between eastern and western regions. Based on these findings, this paper concludes with policy recommendations for improving urbanization quality and its sustainability in China.

‘In Corona Populi’

2019 ◽  
pp. 37-67
Author(s):  
K.J. Kesselring
Keyword(s):  
Sudden Death ◽  
Early Modern ◽  
Twelfth Century ◽  
Early Years ◽  
Privy Council ◽  
Active Intervention ◽  
Lay Participation ◽  
Financial Interests ◽  
Star Chamber ◽  
Over Time

Chapter 2 examines the coroner’s inquest, asking how homicides become known and categorized, and how this changed over the period. Coroners held an office that dated from the late twelfth century, but one freshly charged from around 1487, when statutes sought to press the coroners to action through fees and fines. The coroners’ determinations of the nature of a sudden death, in early years, focused on the financial incidents owed to the king. Over time, financial interests in a killing became more diffuse and the king’s interests became more expansively understood. The active intervention of the Privy Council and the Court of Star Chamber helped police the efforts of inquests. The mix of lay participation and central oversight gave the early modern inquest a special flavour. Coroners’ inquests came to be seen as serving not just the king’s interest and the king’s peace, but something conceived as public justice.

A REVIEW OF THE CORROSION BEHAVIOR OF METALLIC HERITAGE STRUCTURES AND ARTIFACTS

2015 ◽  
Vol 77 (1) ◽  
Author(s):  
K. M. Darain ◽  
M. Z. Jumaat ◽  
S. M. Nazimuddin ◽  
A. Ahsan ◽  
R. Rashid ◽  
...  
Keyword(s):  
Corrosion Behavior ◽  
National Income ◽  
Metal Corrosion ◽  
Remedial Measures ◽  
Vital Part ◽  
Surrounding Environment ◽  
The World ◽  
Marine Areas ◽  
Culture Tradition ◽  
Over Time

Awareness about restoring and preserving historically important structures and artifacts is gradually growing in many parts of the world. These artifacts and structures represent the culture, tradition and past of a nation. They are often also a source of national income through tourist activities. Besides masonry and wood work, metallic forms and relics are a vital part of the heritage which needs to be conserved. Certain metals have been used significantly throughout history in the creation of objects and structures. However, metals are prone to decay over time, particularly decay through corrosion. The basic mechanisms of metal corrosion, the various types of corrosion and existing remedial solutions are reviewed in this paper. The most significant factor affecting metal corrosion was found to be the surrounding environment, especially in marine areas. Different remedial measures can be implemented on corroded metals according to their specific properties. Recommendations for further study are offered at the end of the paper.

scholarly journals Forward or Backward Looking? The Economic Discourse and the Observed Reality

2016 ◽  
Vol 236 (4) ◽  
pp. 483-515 ◽  
Author(s):  
Jochen Lüdering ◽  
Peter Winker
Keyword(s):  
Computational Linguistics ◽  
Academic Research ◽  
Relative Importance ◽  
Real Economy ◽  
Var Models ◽  
Indicator Values ◽  
Economic Discourse ◽  
The Past ◽  
Preparatory Work ◽  
Over Time

Abstract Is academic research anticipating economic shake-ups or merely reflecting the past? Exploiting the corpus of articles published in the Journal of Economics and Statistics (Jahrbücher für Nationalökonomie und Statistik) for the years 1949 to 2010, this pilot study proposes a quantitative framework for addressing these questions. The framework comprises two steps. First, methods from computational linguistics are used to identify relevant topics and their relative importance over time. In particular, Latent Dirichlet Analysis is applied to the corpus after some preparatory work. Second, for some of the topics which are closely related to specific economic indicators, the developments of topic weights and indicator values are confronted in dynamic regression and VAR models. The results indicate that for some topics of interest, the discourse in the journal leads developments in the real economy, while for other topics it is the other way round.

Reminiscing in the early years: Patterns of maternal elaborativeness and children's remembering

2009 ◽  
Vol 33 (2) ◽  
pp. 118-130 ◽  
Author(s):  
Catherine A. Haden ◽  
Peter A. Ornstein ◽  
David J. Rudek ◽  
Danielle Cameron
Keyword(s):  
Regression Analysis ◽  
Longitudinal Design ◽  
Language Skills ◽  
Early Years ◽  
The Past ◽  
Maternal Style ◽  
Early Memory ◽  
First Time ◽  
Over Time ◽  
Time Point

This study focused on individual differences in maternal style and children's developing recall abilities in early memory conversations. Within a longitudinal design, a sample of 56 mother—child dyads was observed while reminiscing, and the children's language skills were assessed when they were 18, 24, and 30 months old. In contrast to mothers classified as “low-eliciting,” mothers in a “high-eliciting” group offered more open-ended elaborative questions, fewer elaborative statements, and more confirmations to their 18-month-olds. Although all mothers increased in their elaborative questioning over time, the stylistic groups that were identified remained distinct. Moreover, children of high-eliciting mothers were providing more memory information, even at the first time point, than were children of low-eliciting mothers, but these differences were magnified at 24 and 30 months. Results of correlational and regression analysis further suggest that children's concurrent language skills, their 24-month recall abilities, and their mothers' reminiscing style when they were 18-months of age each contribute uniquely to the prediction of children's provision of memory elaborations in conversations about the past at 30 months of age.

Trends in Political Science Research and the Progress of Comparative Politics

2017 ◽  
Vol 50 (04) ◽  
pp. 979-984
Author(s):  
Matthew Charles Wilson
Keyword(s):  
Political Science ◽  
Comparative Politics ◽  
Scientific Revolution ◽  
Science Research ◽  
Early Years ◽  
Research Traditions ◽  
Research Agendas ◽  
Political Science Journals ◽  
Over Time

ABSTRACT This article illustrates major trends in political science research and frames the progress of research agendas in comparative politics. Drawing on the titles and abstracts of every article published in eight major political science journals between 1906 and 2015, the study tracks the frequency of references to specific keywords over time. The analysis corresponds to and complements extant descriptions of how the field has developed, providing evidence of three ‘revolutions’ that shaped comparative politics—the divorce of political science from history during its early years, a behavioral revolution that lasted until the late 1960s, and a second scientific revolution after 1989 characterized by greater empiricism. Understanding the development of the subdiscipline, and viewing it through the research published in political science over the last 100 years, provides useful context for teaching future comparativists and encourages scholars to think more broadly about the research traditions to which they are contributing.

scholarly journals Disparities at the entrance door: gender gaps in elementary school

2018 ◽  
Vol 44 (0) ◽  
Author(s):  
Lina Martínez ◽  
Natalia Serna
Keyword(s):  
Gender Differences ◽  
Elementary School ◽  
Standardized Test ◽  
Early Years ◽  
School Factors ◽  
Gender Gaps ◽  
Cross Sectional ◽  
Entrance Door ◽  
The Usa ◽  
Over Time

Abstract A sizable body of literature has concluded that males do better in math compared with females. Although differences have narrowed over time, generally speaking males do better on standardized test scores. However, there is no agreement on when such disparity appears and how big the differences are. This paper explores at what point during elementary school gender differences appear, when these become significant and how the gap evolves as children progress at early years. To explain differences by gender, math scores are used. Data comes from the Early Childhood Longitudinal Program (ECLS-K) in the USA. Longitudinal and cross-sectional analysis are conducted. Gender gaps are decomposed through the use of ñopo-match. Results show that gender gaps are almost inexistent at the beginning of schooling but they broaden rapidly. Between first and fifth grade, gender gaps increase by 60.8%. The unexplained components of gender differences increase over time, which suggests that the importance of socioeconomic and school factors decreases as children progress in the school.

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