The Nature of Capital and Income

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Macmillan, 1906 - 427 pagine
 

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Indice

Property
18
Definition of services
19
Definition of rights
20
Wealth and property correlative
22
Table illustrating this correlation
24
One property right overlaid by another
31
Property rights are always to existing wealth
32
Total ownership is aggregate of partial rights
34
Classification of property rights 86
37
Importance of a clear understanding of wealth and property
38
UI Utility
41
Synonyms for desirability utility etc
42
PART I
49
Capital
51
Discordant definitions of capital
53
Fundamental truths in these conflicting definitions
57
Confusions resulting from neglect to introduce time element
58
The weight of economic usage
60
Popular and business usage
61
Correct terminology less important than correct thinking
65
Capital Accounts
66
Book capitalization
68
Book and market values
71
Summary of senses of capital
72
Case of decreasing capitalbalance
73
Effect of payments between stockholders and company
75
7 Rights to subscribe
77
Stock watering
79
Insolvency
81
Pseudoinsolvency
82
But practically creditor is risktaker
84
Winding up a bankrupt company
86
One bankruptcy leads to another
87
Summary
89
Capital Summation
90
Distinction between accounts of real and fictitious persons
92
Summation by couples brings into relief concrete capital
93
Nature of credit
96
Importance of distinguishing methods of couples and balances
97
CHAPTER VTI Income
98
CHAPTER X
99
Income
101
The moneyincome concept
103
The realincome concept
104
Error of including as income both commodities and services
106
Vain attempts to escape the pitfalls thus laid
109
6 Income not restricted to enjoyable elements 112 7 Socalled social and individual income
113
Conclusion
115
Income Accounts
119
Specimen income and outgo accounts
122
Cost of construction is to be included in outgo accounts
124
Devices for making income regular
127
Applications of income accounting
129
Example of individual accounts
131
7 Income and outgo account for negative capital liabilities
134
Limitations of practical bookkeeping
135
Income accounts for fictitious persons
138
Relation of income accounts to capital accounts
139
Income Summation
141
Interactions
143
Interactions which change the form of wealth production
145
Interactions which change the place of wealth transportation
148
Interactions which change the ownership of wealth exchange
149
Accounts illustrative of the first class production
152
Results of combining these accounts
156
Methods of balances and couples contrasted
157
Accounts illustrative of the third class for fictitious persons
158
Accounts illustrative of the third class for real persons
162
Psychic Income
165
PART m
166
Concept of subjective income
167
Objective and subjective incomes differ in time
169
Objective and subjective incomes differ as to labor
170
Labor the only ultimate cost of production
173
Objective and subjective income differ as to pain
175
Summary
177
Conclusion 164
193
Rate of capitalization or reciprocal of the rate of interest
194
The conditions under which they are interchangeable 196 6 Conditions under which they are not interchangeable 198 7 The rate of discount
199
Value of Capital
202
Application to valuing capital property and wealth
204
Capitalvalue of a perpetual annuity
208
Capitalvalue of a terminable annuity
209
6 Application to valuing capital property and wealth
210
Capitalvalue of a bond
217
Capitalvalue when alternative income streams are possible
221
Capitalvalue of a group of articles
223
Earnings and Income
227
Effect of a change in the rate of interest
229
Standard or earned income vs realized income
231
Increase of capital equals excess of earnings over income
236
A depreciation fund as a means of standardizing income
238
7 Sinking funds
244
The device of keeping a large stock of instruments
246
10 Savings are not a part of realized income
247
11 Imaginary case of three brothers
249
12 An income tax on the three brothers
253
Capital and Income Accounts
256
Capital and income accounts when items recur regularly
257
The same when there is a repair fund but no repairs as yet
259
The same when repairs actually occur
261
Extraordinary increases or decreases
263
6 Conclusion
264
The Risk Element
265
Definition of chance
269
Risk as applied to the rate of interest
271
Same in case future income is dependent on rate of interest
273
Risk as applied to immediate income
275
6 RUkless mathematical and commercial values
276
Capitalvalue of a risky bond
277
Riskless mathematical and commercial rates of interest
279
9 Inverse case where instead of risk of loss there is chance of gain
280
The general case where both are present
281
11 Difficulties in practice
283
Enumeration of causes affecting capitalvalue
284
Effect of chance on the form of the discount curve
286
Effect of chance on bookkeeping
287
Five methods of avoiding risk
288
The method of guaranties
289
The method of increasing knowledge
291
Forms of insurance
294
21 Shifting risks to speculators Dangers of imitative speculations
295
Buying and selling futures
298
PART IV
301
Summary of Part III
303
Capitalvalue as discounted income
304
Capitalvalue as mean between past cost and future income
305
How to combine capital curves
309
Resultant in case of interactions
311
Application to summation of capital of individuals
314
Application to summation of capital of society
316
8 An interaction as preparatory to enjoyable services
317
The risk element
321
General Summary
323
Picture of capital and income
324
Subjective counterparts of objective capital and income
326
Relative changes in values of capital and income
327
Final summary
328
Glossary Summary of Definitions
329
Summary of Definitions
331
APPENDICES 841
339
to Ch I 7 Dimensions of quantity value and price of wealth
341
Appendix to Chapter XI
347
to Ch XI 2 Mathematical dimensions of incomecapital
357
to Ch XII 6 Mathematical relations between the rates
363
to Ch XIII 1 Formula for capitalvalue of a sum due
368
to Ch XIII 6 Formula for capitalvalue of a terminable
374
Capitalvalue of any income stream whatever 217
382
to Ch XIII 10 Effect of reckoning semiannually quar
388
to Ch XIV 5 When the interest rate varies there
396
INDEX
413
Desirability vs services 43
424

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