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Capital Maintenance Adjustment Under the Financial (Real) Capital Concept
Author(s) -
PRATT DENIS J.
Publication year - 1988
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.1988.tb00213.x
Subject(s) - inflation (cosmology) , purchasing , capital (architecture) , economics , financial capital , finance , business , macroeconomics , microeconomics , operations management , profit (economics) , physics , archaeology , theoretical physics , history
This paper examines the way in which the general purchasing concept of capital has been implemented in the real business income and selling price models. It presents an analysis of the conceptual aspects of the alternative methods of implementation proposed in the literature and identifies limitations in adjusting for inflation in entry price models.