Expectations, Capital Gains, and Income |
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| Authors: | Robert J. Hill T. Peter Hill |
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| Affiliation: | Hill, R. J.;: Associate Professor, School of Economics, University of New South Wales, Sydney 2052, Australia. Phone 61–2–93853076, Fax 61–2–93136337, E-mail Hill, T. P.;: Formerly Professor, School of Economics and Social Studies, University of East Anglia, Norwich NR4 7TJ, England, and Head of Economic Statistics and National Accounts, Organisation for Economic Co-operation and Development, Paris. Phone 44–1508–470372, Fax 44–1508–471311, E-mail |
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| Abstract: | A theoretical framework for the measurement of income under uncertainty is developed that addresses some long-standing controversies about the treatment of capital gains. The consequences for economic analysis and policy making are potentially serious, because the treatment of capital gains can significantly affect some major macroeconomic aggregates, including national income and savings, balance of payments deficits, government deficits, and depreciation. (JEL O47 , P44 , Q32 ) |
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