Capital Gains in Economic Theory and National Accounting

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: Capital Gains in Economic Theory and National Accounting: Alte Version

Author:: Steindl, Josef

Scope:: Typoskript, 15 Blätter, mit Anstreichungen und Anmerkungen

Year of publication:: ohne Datum

Language:: English

Description:: The national accounts do not know capital gains as they do not deal with assets and consider only the relations of flows in one year. Steindl states that modern economics manages practically to ignore the theoretical relevance of capital gains. Steindl argues that a rise in land or share values creates savings just like real investment and that the exclusion of capital gains from national accounts has led to glaring misinterpretations of the data (distortion of the savings rate). He suggests to introduce separate accounts for capital gains, consumer's credit and investment. Furthermore he explains the macroeconomic implications of creating capital gains.

Note:: Eine längere Version des vorliegenden Textes wurde post mortem (1998) publiziert. Die in diesem Typoskript vorhandenen Texteile sind im Wesentlichen identisch mit dem publizierten Text (es fehlen Kapitel 9 und Teile von Kapitel 10).

Related work:: Steindl, Josef: Capital Gains in Economic Theory and National Accounting. In: Banca Nazionale del Lavoro Quarterly Review, Vol. 51, Issue 207, December 1998, S. 435-449

Topic:: Economic history,economic theory,current developments

JEL Classification:: E22 [Investment, Capital, Intangible Capital, Capacity] E01 [Measurement and Data on National Income and Product Accounts and Wealth, Environmental Accounts]

Shelfmark:: S/M.22.6

Access:: Free access

15 holdings in good part by credit - and a boom will be set in motion just as in the case of a surge of optimistic expectations. In both cases there is a non sustaineable increase in asset prices. The mechanism ressembles that of the trade cycle where there is a non sustaineable increase in the rate of growth. Naturally the two - the financial cycle and the trade cycle influence one another. CAPITAL GAINS TAX. The opponents of the capital gains tax maintain that such a tax makes it more difficult to sell new shares especially if it is the case of a firm which does not belong to the small set of very well established large corporations. The idea is presumably that those who take up newly issued shares say of a new high tec concern will often have to base themselves not on actual returns which are still modest but on the promise of large returns in times to come. In other word the chances of new corporations are thought to be based on investors which are to some extent speculative.

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