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Summary: This paper studies spillovers across macroeconomic sectors in the United Kingdom, using data from the Bank of England's Flow of Funds statistics. We combine two different approaches to quantify the spread of economic deterioration to assess whether sectors with large bilateral economic linkages as measured through network data have a greater statistical likelihood of spillovers between them. The combination of both approaches reveals the Monetary Financial Institutions sector's role as shock absorber and identifies the most important channels of spillovers. The inferential discrepancies between network data and statistical spillovers highlight the contribution of the proposed methodology. [ABSTRACT FROM AUTHOR]

We present a simple rational model to highlight the effect of investors' participation costs on the response of mutual fund flows to past fund performance. By incorporating participation costs into a model in which investors learn about managers' ability from past returns, we show that mutual funds with lower participation costs have a higher flow sensitivity to medium performance and a lower flow sensitivity to high performance than their higher-cost peers. Using various fund characteristics as proxies for the reduction in participation costs, we provide empirical evidence supporting the model's implications for the asymmetric flow-performance relationship. [ABSTRACT FROM AUTHOR]

This article focuses on the fiscal management in cities and municipalities in the U.S. Fiscal strain may be thought of as the offering price of a new bond market issue, or the price in the secondary bond market. Both of these are related to the probability of the issue meeting regular payments of principal and interest. Topics also discussed include the stress on the municipal bond market, causes of municipal fiscal strain, flow of funds, and a chart depicting factor analysis of fiscal strain indicators.

This paper studies the flows of funds into and out of equity mutual funds. Consumers base their fund purchase decisions on prior performance information, but do so asymmetrically, investing disproportionately more in funds that performed very well the prior period. Search costs seem to be an important determinant of fund flows. High performance appears to be most salient for funds that exert higher marketing effort, as measured by higher fees. Flows are directly related to the size of the fund's complex as well as the current media attention received by the fund, which lower consumers' search costs. [ABSTRACT FROM AUTHOR]

Econometric model building of the type represented in the Duesenberry-Bosworth paper was at best an attempt to see whether systems of, say more than 25 equations, add much to our knowledge of the economy and the response to policy changes. They have not, I believe, at least to this point, and I am not optimistic about a change in the next few years, instead of commenting on the details of the particular models presented at this session, I will explain some of the reasoning that brings me to that conclusion. Before doing so, let me make clear that my comments are not directed at either "theory" or empirical science. There is very little of either in current econometric practice. I view my comments as a criticism of large models, models of twenty-five or more equations, not as a criticism of modelling or testing economic hypotheses. [ABSTRACT FROM AUTHOR]

A financial system in a modern market economy has two basic functions: the facilitation of transactions among economic units, and the allocation of savings among alternative investments and investors. The former has been associated with money as a medium of exchange and with the short-term money markets, and the latter with the capital markets. Traditional monetary theory emphasized the transactions function in focusing upon the demand and supply of money as the primary analytical framework for examining the role of financial variables in the economic system. The basis for this point of view was the classical quantity theory of the monetary mechanism. Money as a medium of exchange was given heavy emphasis in a theory which specified a rigid relationship between total transactions and the demand for money balances--a relationship which could not be altered by other factors endogenous to the economic system. Under these circumstances, any change in the supply of money balances was fully reflected in a proportionate change in the demand for nominal output. There was little interest in, or need to refer to, the market for other financial assets. The present model differs in that it is concerned with the demand and supply of bonds rather than the demand and supply of money balances. This allows us to undertake a degree of disaggregation by asset and sector that is not feasible within the framework of the market for money balances, Such a model is theoretically and empirically equivalent to the "money models" unless there are significant departures from the hypothesis underlying the homogenization of different types of marketable securities. Specifically, it is our view that observed differences in the cyclical movement of market interest rates are affected by the relative quantities of the individual securities outstanding. [ABSTRACT FROM AUTHOR]

The article reports that usually installment reporting of deferred payment sales for tax purposes will result in deferral of income tax. The authors explain that this note is concerned with the effects of such tax deferral on company profitability and on the flow of funds under varying conditions of sales growth and terms. They state that it is commonly recognized that, with other variables constant, installment sales are growing. When sales decline or stabilize following a period of growth, the result is the reverse or neutral.

The article reports on the flow and sources of funds. Interest rates can relate to sources or flow of funds systems through the use of residual funds which were supplied by individuals, foreigners, and various investors. However, this is not the only manner flow of funds systems can be applied to an analysis of interest rates. The sectoral demand for cash balances is directly related to the banking system and can be starved, adequate, or satiated depending on the status of the banking system. Also, interest rates are related to the estimate of the volume of funds supplied by investors, foreigners, or individuals.

The article discusses the use of flow-of-funds data in making future financial flow short run projections. The flow of funds accounts is the only application which recognizes the nature of accounts as a closed economic system in macroanalysis. A closed economic system is one where all transactions are covered as payments and as receipts. Macroforms of analysis are appealing because they recognize the interrelations of parts of the whole explicitly even though they do not predict financial activity consistently or accurately.

The article reports on the application of the flow of funds accounts to interest rate forecasting. There has not been a lot of interest in techniques for forecasting interest rates because they are considered results of business activity and therefore need only business forecasts. However, there are two popular methods: correlations with the economy based on a non-statistical approach, and an outlook analysis of the uses of funds and their sources. An informal approach considers that money rates are reflective of changes in business activity which create fluctuations in interest rates that are comparable.

The article reports on the flow of funds which was created by the economist M. A. Copeland. Statistics in the capital market were being disgorged by the U.S. Board of Governors of the Federal Reserve System after the revised presentation in 1959. The flow of funds accounts is used to analyze the financial market but when an economist is not a specialist in the capital market he really does not find it useful. The fact that not all economists can use this system shows that there is an unbalanced growth.

The article discusses the flows of funds between reserve districts or zones in the U.S. as of 1955. The article examines the theory of international trade as a balancing mechanism under an international gold standard. The author explains that net interregional flows of funds within the U.S.usually come in the form of shifts in member bank reserves. The article also discusses the patterns of flows of funds, analytical uses of the interregional moneyflows data, and interregional flows and bank reserves. Several tables are presented to help illustrate the study.

The article focuses on the flow of funds through the capital market. This progress report spans from 1953 to 1955. Particular attention is given to the quarterly flow of funds through the market. The first part of this study discusses the nature and some of the problems of measuring quarterly flows. The second part examines some of the developments in the capital market suggested by the data on these flows. The article explains how this set of accounts differs from the Federal Reserve Board's flow-of-funds accounts.

The article surveys the development of flow-of-funds methodology for analyzing borrowing problems confronted by the U.S. Treasury Department. Research into the subject was prompted by the substantial financing needs of World War II. By early 1942 individuals from various government agencies were exploring the relationships between savings, investment, consumption, and other key variables. Older metrics such as "national income" were found lacking, and new measures were created. It was seen that, for certain purposes, gross income flow was a more appropriate statistic than gross national product. From gross income flow came disequilibrium analysis. Since World War II, flow-of-funds methods have continued to be used, albeit in streamlined form.

The article presents an exploration into the analysis of the gross flow of capital funds with regard to the residential real estate market of the U.S. A review of data is provided of mortgage loans and equity funds applied to residential acquisitions between 1911-1952 to demonstrate the necessity of determining gross flow rather than simply examining net changes in debt in order to address questions of internal-external debt ratios and trends of debt and equity financing by consumers. Additional questions are asked concerning the influence of construction as well as the purchasing of previously developed property.

The article focuses on the definition and measurement of government expenditures in public finance. Difficulties in the overuse and overly broad inclusion of the term are reviewed and a thorough outlining of the precise elements of government expenditures is provided. Primary concepts addressed include the activity of government enterprises, the cash and conventional budget, government account depreciation, capital payment timing, loan guaranties, and others. Additional mention is also given to non-optimal elements, such as government property leasing and scenarios of incomplete compensation for services.

The article discusses issues related to the conceptual foundations of net national product and net national income. The measures of net income have attracted much scholarly interest in national income economics. The author claims the income measurement as both product and factor prices has statistical support, which makes it an effective measure of real income. He concludes by stating that the full value of government production should be reflected in the single measure of net income and production.

This paper decomposes and analyzes China's saving-investment imbalance (equivalent to current account imbalance) from 2002-2008. We first use the Flow of Funds Accounts to calculate the saving and investment rates (propensity) of the household, corporate and government sectors and to evaluate their relative contribution to the aggregate saving-investment surplus. The results indicate that the increase of saving-investment surplus can be attributed to the steady increase of saving by the household and government sectors and the short-term downsizing of investment by the corporate and government sectors. We then use more disaggregate supplementary datasets to explore the factors behind the evolution of the saving and investment rates for the three sectors. The rise of the household saving rate mainly sources from the urban sector. The corporate saving rate experienced a steady increase because of the rise of profitability. Government macroeconomic policies have had a strong influence on the saving and investment patterns of the corporate and government sectors. [ABSTRACT FROM AUTHOR]

The Duesenberry-Bosworth (DB) paper (and the impressive amount of work which ties behind it) are a welcome addition to the literature on models of the financial sector. In the first instance, there has been considerable interest in recent years in moving away from models with a heavy dosage of term structure and risk structure equations towards a model in which interest rates are explicitly determined by portfolio behavior of demanders and suppliers of various financial assets. Needless to say, the DB effort takes a giant step in this direction. To me at least, the other main attraction of the DB effort is that it attempts to exploit the flow of funds data, whose promise has long been touted but is as yet unrealized. The present paper reports a number of policy simulations with their complete macroeconometric model. The general structure of the model is given in the paper before us but most of the details are omitted. The model, however, is described more extensively in research which has recently been reported elsewhere. Since it is difficult to evaluate the simulations reported without some reference to the underlying model, I will be pardoned if I say a few words on this score. [ABSTRACT FROM AUTHOR]

The article focuses on the role of financial non-money assets as substitutes for money in the corporate business sector. It states that economist Milton Friedman's criterion for substitutability is that alterations in money-substitute holdings have to change in the opposite direction from money holdings changes. It mentions that using this definition, which includes time deposits, and examining data for annual flow-of-funds, the behavior of money and government securities from the late 1940s to 1967 contradict the conclusion Friedman made regarding their behavior. It states that aggregate changes in liquid financial asset holdings such as finance papers, government securities, and time deposits, display the same behavior expected for money-substitutes.

ABSTRACT This paper uses a two-country VAR approach to study the transmission of monetary policy shocks in Portugal, focusing in particular on the financial decisions of households, corporations (financial/non-financial), the government and the rest of the world. We find that a monetary policy shock has a contractionary effect on economic activity and increases the financing needs of households and non-financial corporations. The financial sector plays an important role, supplying the necessary funds to these sectors and thus facilitating their adjustment to the shock. We do not find much evidence of a significant systematic behaviour of the government or the rest of the world in response to monetary policy shocks. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper employs Hong's (2001) causality-in-mean and causality-in-variance tests to investigate the spillovers between business confidence and stock returns for the four economically distressed Southern European countries, namely Greece, Italy, Spain, and Portugal. The sample uses monthly data and covers the period from January 1988 to December 2010. Our causality-in-mean results indicate that there is feedback relationship between stock returns and business confidence in Portugal. The direction of causality-in-mean runs from business confidence to stock returns in Italy, but it is in the reverse direction in the case of Spain. Nevertheless, there is still evidence of a contemporaneous interaction between business confidence and stock returns in both Italy and Spain. On the other hand, causality-in-variance indicate the presence of volatility spillovers from business confidence to stock returns in Portugal, while a causal relationship is found in the current month in the case of Italy. Business confidence causes stock returns only in the mean in Greece. These results indicate that the stock market and business confidence relationship has its own idiosyncratic properties and that the stock market reactions to the current macroeconomic environment and expectations about the future developments might evolve differently in each country. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

We examine the flow of federal grants‐in‐aid from the U.S. Environmental Protection Agency (EPA) to the states. We simultaneously model two dependent variables (the flow of EPA funds, and state environmental and natural resource budgets) to identify the independent roles of state political institutions, political preferences, economic and demographic characteristics, and the task environment. Our central focus, though, is on the relationship between grants and state spending after taking into account those direct effects. We examine the evidence for positive association (a flypaper effect) and negative association (crowding out). We show the different roles for political institutions, political preferences, demographic and economic characteristics, and the task environment in each spending context. Most importantly, we find evidence for a flypaper effect between federal funds and state spending: Federal spending and state spending are positively correlated after accounting for the contribution of the unique factors. © 2010 by the Association for Public Policy Analysis and Management. [ABSTRACT FROM AUTHOR]

We develop a Keynesian business cycle model to study how extrapolative and regressive expectation formation rules may affect fluctuations in economic activity. We find that simple expectation formation rules may have an impact on the level and the stability of the equilibrium income, the size of the multiplier and the resulting adjustment process after an exogenous shocks. Our model also reveals that national income may be influenced by how agents perceive their long-run average income. [ABSTRACT FROM AUTHOR]

This paper presents a detailed analysis of the Chinese saving rate based on the flow of funds data. It finds that the most widely adopted view of precautionary saving, which is regarded as the top reason for maintaining a high saving rate in China, is misleading because this conclusion is drawn from the household survey data. In fact, the household saving rate has declined dramatically since the mid-1990s, as is observed from the flow of funds framework. The high national saving rate is attributed to the increasing shares of both government and corporation disposable incomes. Insufficient consumption demand is caused by the persistent decrease in percentage share of household to national disposable income. Government- directed income redistribution urgently needs to be improved to accelerate consumption, which in turn would make the Chinese economy less investment-led and help to reduce the current account surplus. (Edited by Zhinan Zhang) [ABSTRACT FROM AUTHOR]

The question of how the level of development affects revolutionary support in society is of fundamental importance. One approach to provide an answer has been to study the relationship between actual civil conflict and income at the national level. This article takes a different approach. It uses microdata sets based on surveys of revolutionary support across one-quarter of a million people and identifies how the responses vary with their incomes. We find that a rise in GDP of $US 1,600 per capita in 2001 values decreases the chances of supporting revolt by 2.4 percentage points which represents a 41% drop in the proportion of people wanting a revolution. For a person who jumps from the bottom to top income quartile within their country, the probability declines by a similar amount. The results are robust to controlling for country and year effects, country-specific time trends and take account of the potential endogeneity of GDP. [ABSTRACT FROM AUTHOR]

This article presents a new framework for analyzing the simultaneous determination of current account imbalances and the path of national income. Using standard macroeconomic behavioral relationships, it first examines how and why current account deficits matter by investigating links between domestic consumption, government spending, output, saving, investment, interest rates, and capital flows. Central to the model is the distinction between aggregate output and expenditure that enables dissection of the effects of discretionary fiscal change on the current account and national income. The framework yields results relevant to the twin deficits hypothesis that are contrary to those of standard models. (JEL El0, F32). [ABSTRACT FROM AUTHOR]

This paper is an application of Flow-of-Funds analysis to the case of Thailand during the 1996–97 Asian crisis. It begins with a background historical sketch of the financial crisis in East Asia, emphasizing the central role of weak financial systems and foreign debt. The paper then presents a method of estimating quarterly Flow-of-Funds accounts using Thailand as an example. This simple method is available from data published by the I.M.F. for most of the countries of the world. The Thai data are then used in a Flow-of-Funds analysis of the crisis in Thailand. This analysis contrasts with the opening historical sketch in quantitatively tracing the significant financial flows and, particularly, the finances of the private sector. The paper closes by emphasizing the need for current reporting of data to facilitate such analyses. [ABSTRACT FROM AUTHOR]

This paper provides a selective survey of the leading theoretical and empirical issues surrounding the flow of funds: its meaning and origin, problems of construction, its use in financial modelling and its role as a tool of analysis of intersectoral financial flows. It is argued that there is an intimate connection between the flow of funds, interest rates and asset prices, and hence incomes and expenditures in an economy. The paper discusses flow of funds analysis in the context of developing countries, concentrating on possible applications and methodologies, and the issue of data collection and organization. We explore the reasons for lack of success at empirical flow of funds modelling and propose ‘promising research ideas’ (PRIs) to apply flow of funds analysis to study the relationship between financial sector development and the real economy, particularly to identify effective financial sector policies in developing countries. Copyright © 2003 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Cross–listings of equities internationally are becoming more common. Using data for Europe and North America, previous studies reject the order flow diversion hypothesis, which states that international cross–listings reduce home–country trading volume. We test this hypothesis using data for equities cross–listed in Singapore and Malaysia. We find that trading volume in Malaysia fell 42.9% when Singapore markets were closed for holidays. Furthermore, we show that trading volume in Malaysia did not increase following the implementation of regulations that ended the trading of Malaysian equities in Singapore in 1998. Hence, we reject the order flow diversion hypothesis. [ABSTRACT FROM AUTHOR]

This study extends the literature on the relationship between recent performance and the movement of managed funds’ assets by investigating the effects of fund size and age. The results confirm a size effect, as well as an age effect. Tests distinguishing between the two favor a size rather than an age interpretation. The evidence that flows of small funds are more sensitive to recent performance than flows of large funds is consistent with Gruber’s (1996) notion of sophisticated investors using information in past performance to identify superior funds. Zheng’s (1998) evidence that the good performers tend to be small funds suggests that the smart money should be following small funds, as confirmed in this study. Support for the ‘smart money size effect’ is also provided here with evidence confirming that small funds tend to be superior performers. [ABSTRACT FROM AUTHOR]

Examines the potential for use of spatial allocation modeling techniques to evaluate the flow of funds within and between local financial markets. Review of the structural dimensions of the methodology; Discussion on data needs for related empirical work; Components of a flow of funds model.

This paper examines and compares the portfolio behaviour of Canadian non-financial government and private enterprises. The greatest difference observed is the relatively small size and yet more active management of the government enterprise asset portfolio. In comparing our model of the private Canadian corporate sector with that of the US, we find the main difference to be a Canadian preference for borrowing rather than equity issue. This preference almost certainly reflects the high level of foreign ownership of Canadian resident corporations. [ABSTRACT FROM AUTHOR]

Analyzes the crowding out hypothesis, proposed by Frank Zahn, that focuses on the effects of government spending and borrowing on the flow of funds between commodity and financial markets. Source of data for the analysis; Estimation of dynamic multipliers for income related to government spending, borrowing, and expenditure; Reasons for the reverse conclusions compared to Zahn.

The purpose of this paper is to examine the separate as well as combined influences of contractionary government borrowing and expansionary government spending on the time path of income. The investigation is undertaken within the framework of a small aggregate econometric model of the U.S. economy consisting of both commodity and financial (flow of funds) sectors. The special feature of the model and subsequent analysis is the explicit treatment of government borrowing. The approach is considered more appropriate in testing the crowding out hypothesis which is essentially one involving both government spending and borrowing effects on the flow of funds between commodity and financial markets. Estimates of the dynamic multipliers attached to government spending and borrowing in the model's solution for income permit a separate appraisal of both the expansionary influences of government spending and contractionary influences of government borrowing on the time path of income. The combined influences evaluate the extent of real crowding out.
In this paper an attempt is made to directly and explicitly investigate the separate and combined influences of increase in government spending and government borrowing on the time path of income. A small quarterly model of the U.S. economy was constructed for this purpose. The special feature of this model, and its necessary feature for the investigation, is the development of the financial sector in terms of financial flows in such a way as to give explicit consideration to government borrowing. For both government borrowing and spending a set of dynamic multipliers was computed. The results show that the contractionary influence of government borrowing alone on income occurs much slower and lasts longer than does the expansionary influence of government spending alone. The PURE multipliers show that the greatest influence of an increase in government spending, financed strictly by borrowing, is registered during the... [ABSTRACT FROM AUTHOR]

The article focuses on Great Britain's putative economic decline, and more particularly the preoccupation with failure which has intermittently characterized political, journalistic, and academic discourse over the last 100 years. There can be no doubt about the persistence with which commentators have taken a profoundly despondent view of Britain's economic record and future. In late twentieth-century Britain, of course, the seeming paradox of a sense of economic failure thriving in an increasingly affluent society has a simple and obvious terminological resolution--relative decline and absolute growth can and do co-exist. British national income has certainly grown; but over the last century or so that of other leading economies has grown faster. In the quarter century up to the 1970s, for example, while Britain's rate of economic growth accelerated, there was even more dramatic acceleration in other countries. As a result, anxiety and complaint about falling behind became most strident even as affluence became an accepted characteristic of British society.

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It was conjectured by Pigou that an increase in real national income, as reckoned in the prices of either the initial or the terminal period, would always correctly indicate an improvement in national welfare provided the increase referred to the aggregate income of a given group of persons with fixed preferences and a fixed proportional distribution of income among them. We show that if the individual preferences are assumed to be homothetic, and if by a welfare improvement one means respectively a potential improvement (in which losers can be compensated by gainers) or an actual improvement (in which all are gainers), then on either of these respective criteria Pigou's conjecture holds true under these conditions if and only if individual preferences are identical. [ABSTRACT FROM AUTHOR]

After defining economic activity the author lists the chief types of non-market economic activities for which he has prepared estimates for the United States 1929–1973, and briefly describes his methodology and data sources. Some major findings are: (1) As of 1973 GNP adjusted to include the additional imputations was 63.5 percent larger than the official estimate. (2) At least since 1929 imputed values have grown faster than official GNP, especially when both are measured in terms of real factor costs. (3) The personal sector comprises a far larger portion of the national economy—almost one-third— when account is taken of imputed labor and property compensation, and its relative importance has grown. (4) Gross government product is more than 60 percent higher when the imputed rental value of public property is added to the compensation of general government employees. (5) Reflecting the relative growth of non-business wealth, imputed property income has risen much faster than monetized property income. This has mitigated the decline in the property share of expanded gross national income compared with its share in the official estimates. [ABSTRACT FROM AUTHOR]

The problem of identification and classification of off-shore financial flows and extra-territorial funds is discussed with special reference to the case of the "captive" insurance market in Bermuda. The problem is examined in the context of the UN SNA definitions relating to the evaluation of insurance activities anal the difficulty of gaining access to relevant and complete data. The conclusion is reached that the conduct of off-shore financial operations by local institutions and the resulting surpluses generated remain essentially extranational and thus contribute very little to the domestic value added of the tax haven concerned. Furthermore, by its very nature information relating to the transactors involved, as well as the value of their transactions, is difficult to obtain. This raises a much wider issue, however, as to whether such surpluses are ever identified in any country's national income estimates. [ABSTRACT FROM AUTHOR]

The only periodic data available in Canada on the asset holdings and net worth of the household sector are data collected through a series of household surveys originally initiated in 1954. Some limited data on the holdings of financial claims by the personal and unincorporated business sector are available from flow of funds work. Data are unavailable for estimation from estate tax returns. The scope of the surveys has been expanded substantially so that the most recent survey obtained a very comprehensive list of asset holdings. The experience with Canadian surveys has been similar to that of other countries; surveys appear to underestimate asset holdings although the estimates are more reliable for widely held assets than for assets with a very skewed distribution. Nevertheless, the surveys appear to trace the accumulated distribution of personal savings over time to a considerable degree and provide useful cross-sectional trend data. Canadian data show that wealth is more unequally distributed among family units than is income although wealth appears to be more equally distributed between income groups than is income. Wealth is also very unequally distributed within the same income group. Over time, there appears to have been some movement towards a more equal distribution of asset holdings between income groups. [ABSTRACT FROM AUTHOR]

This article considers statistics on personal savings from 1950 through 1960 through the publication of a flow of funds data by the Bank of England in Great Britain. Information on the estimates of savings available. Discrepancy between residual and identified saving. Trends in the growth of personal savings. Controversy about the specification of the aggregate personal saving function. Difference between personal disposable income and consumers' expenditure.

Comments on a study led by J.B. Penson Jr. and colleagues which investigated the flow-of-funds social accounts for the farm sector. Definition of the nature of funds; Benefits in the development of a conceptual model of the sources and uses of fund statements; Key uses of funds.

Flow-of-funds accounts and component sources-and-uses-of-funds statements relate changes in balance sheet accounts to income statements, describing movement from one balance sheet to the next. While the Federal Reserve System compiles a farm business sector sources-and-uses-of-funds statement consistent with and part of the national flow-of-funds accounts, the statement is not definitionally and conceptually consistent with published farm income and balance sheet accounts. An alternative farm sector sources-and-uses-of-funds statement is proposed that contains these features, and its potential applications and extensions are delineated. [ABSTRACT FROM AUTHOR]

This paper describes and examines three particular features of the official national income tables recently published by the Fiji Government. The need of development planners for a comprehensive set of national accounts incorporating detailed information relating to central government current expenditure, the operations of the private business sector, and the rural household economy has assumed special importance. The uses and limitations to the information contained under these specific headings is discussed and throughout an emphasis is placed on the need for the adoption of consistent and systematic methods of collection and estimation procedures to facilitate planning and decision making. As aids to more detailed interpretation and analysis, the features described are considered to be of general interest to other developing countries. [ABSTRACT FROM AUTHOR]

There is increased interest in flow of funds analysis due to the greater role assigned to money and to financial processes in the economic reforms now being implemented in Eastern Europe. After presenting a history of financial flows analysis, the paper describes data sources, and sectoring procedures. The efforts of particular countries are then reviewed and compared. [ABSTRACT FROM AUTHOR]

A number of official and Western estimates of China's national income for the period since 1949 are at present available. The official estimates are based on the Marxian production concept while the Western estimates are, in the main, based on the comprehensive production concept. The periods covered by the estimates vary; and even in cases where the periods covered are the same, the estimates vary in magnitude and, in most cases, in the implied rate of economic growth. Apart from differences arising from the different national income concepts and definitions employed in individual estimates, sources of discrepancies between series of estimates can be traced to the particular sets of primary data employed and also to the particular procedures followed in estimating the national income components. The present paper brings together the various estimates available to date and indicates for each, as far as possible, the basic production concept adopted, the particular national income aggregates estimated, the basic estimation approach employed, and the special procedures used for estimating some of the components of national income. Comparisons of the major series of estimates for the period 1952-1959 are made and the sources of disrepancies between the series are discussed. Finally, some problems are described which a researcher in the West has to contend with in working on China's national income accounting. [ABSTRACT FROM AUTHOR]

Overall balance between expected available resources and planned investment is not sufficient to ensure development with stability. Imbalances and inflationary pressures could develop as a result of inconsistencies between sector-wise investment structure and the sector-wise structure of saving. This means that the dichotomy between real and financial planning needs to be eliminated not only at the national level but at the sectoral levels as well, so that the sector-wise investment pattern is consistent with the emerging structure of saving and the flow-of-funds. This presents an analysis of the structure of saving and flow-of-funds in India, shows how it is actually used for the purpose of financial planning, and attempts to derive a formalized technique of financial planning. Analysis of the structure of saving in India during 1954-1955 to 1967-1968 indicates the importance of the household sector as the net lending sector to the borrowing sectors, the government and the private corporate sectors. On the basis of the feasible sectoral rates of growth in income and the past trends in sectoral saving-income ratios and household saving pattern with such modifications as are necessary in the light of expected changes in various policies, sector-wise saving structure and the pattern of household sector saving are projected for the Fourth Plan period (1969-1974). Then a flow-of-funds matrix is prepared to derive sector-wise investment estimates as are consistent with the estimated structure of saving, on the basis of the projected sector-wise saving, the pattern of household sector saving and the likely changes in the lending policies of the financial institutions. A formalized technique of financial planning based on the Indian planning experience is presented in the last section of the paper. [ABSTRACT FROM AUTHOR]

Developments in economic theory have in many ways enhanced the opportunity for using financial accounts data in monetary analysis. This is true in such areas as the role of assets, the development of portfolio choice theory, the demand for money, and the behavior of intermediaries. At the same time, theory has increasingly emphasized behavioral relationships. These developments give rise to new data needs. An inquiry was addressed to some 25 specialists, whose responses illustrate these needs. Some of the desired data are "more of the same," such as more sectoring, more detail on financial instruments, data on stocks as well as flows. Some data needs, reflecting behavioral theorizing, point beyond traditional financial accounts data and call for maturity distributions, interest rates, rates of return on equities and real assets, and the parameters of their frequency distributions. The degree of economic development and the degree of openness are found to be important determinants of the kind of data to be sought and employed in particular countries. Public policy is finding increasing use for financial accounts data in coordinating the flow of financial resources with the planning of physical investment. Nevertheless, many policy purposes call for more detailed data than can be provided by an integrated system. This has led to a selective use of data sources outside the financial accounts. Builders of financial models, likewise, have found it preferable to work with more flexible data selected ad hoc than with integrated financial accounts. Hope of applying the techniques of modern model building to financial accounts data, such as econometric estimation of a flow of funds table, or its conversion into an input-output matrix, seems tenuous for the time being. Thus, financial accountants, competing with financial model builders for the attention of theorists and policy makers, must broaden the scope of their data in the hope that there is room for the growth of both disciplines. [ABSTRACT FROM AUTHOR]

This article deals with the statistical data on the current position of national wealth estimation in the world as of September 1969, presented at a conference. For that conference Th. D. van der Weide of the Netherlands Central Bureau of Statistics prepared summary tables of available data (primarily the results of private estimators) on national wealth composition of 18 countries and on particular methods used. Those tables were the result of his time-consuming recalculations on the basis of the international SNA classification. They provided some important facts to think over.