Monday, March 12, 2018

J. W. Mason — Corporate cashflows, 1960-2016

I’ve been fooling around recently with assembling a comprehensive account of sources and uses of funds for the US corporate sector from the Integrated Macroeconomic Accounts (IMA). (It’s much easier to do this with the IMAs than by combining the NIPAs with the financial accounts from the Fed.) The goal is a comprehensive account of flows of money into and out of the corporate sector, grouped in a sensible way.
My goal here is not to make any specific argument, but to provide context for a bunch of different arguments about the finances of US businesses. I think this an important thing to do – both mainstream and heterodox people tend to make claims about specific sets of flows in specific periods, but it’s important to start from the overall picture. Otherwise you don’t know what questions it makes sense to ask. It’s also important to give a complete set of flows, for the same reasons and also to check that one’s claims are logically coherent. Needless to say, you also have to measure everything consistently....
Longish and somewhat detailed, but a lot of interesting stuff. Most notable is the approach to data.

J. W. Mason's Blog
Corporate cashflows, 1960-2016
JW Mason | Assistant Professor of Economics, John Jay College, City University of New York

No comments: