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Expectations, Capital Gains, and Income
Author(s) -
Hill Robert J.,
Hill T. Peter
Publication year - 2003
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1093/ei/cbg031
Subject(s) - economics , depreciation (economics) , capital (architecture) , monetary economics , capital formation , consumption of fixed capital , balance of payments , affect (linguistics) , capital income , macroeconomics , government (linguistics) , public economics , financial capital , human capital , market economy , linguistics , philosophy , archaeology , international taxation , tax reform , history
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 )