Monetary Accounting Research Articles

Managing for Social Outcomes: Diverse Value Rationalities and Financial Control

This article evaluates the use of monetary accounting and other financial management tools in the governance of nonprofit organizations. Drawing on Weber’s insights on monetary accounting, the article elaborates structural differences in the financial management of nonprofit and business organizations. The article demonstrates that the accounting and budgeting technologies used by business cannot offer substantively rational guidance to managers of nonprofit organizations. It is argued that managing for social outcomes requires nonprofits to experiment with organizational structures and processes that promote coherence between the diverse value rationalities which underpin their service aims and the allocation of the unit’s financial resources.

To control with health: From statistics to strategy

The main purpose of this study is to develop and test a generic model for workplace health management in organizations. Four private and four public organizations in northern Sweden were selected for the study. A model for health control was developed on the basis of a literature review and dialogues with the stakeholders in the workplaces. The model was then implemented at the workplaces during a two-year period. Interviews with leaders and co-workers were conducted on two occasions and were analyzed using content analysis and the constant comparison method. By using a grounded theory approach, three main categories were found: health closure and other health and working environment indicators, monetary accounting of health related indicators and changes in leadership behaviour and organizational practices. An important result was that the model influenced leadership values more than leadership and organizational methodologies. From the results a model for workplace health management is proposed, incorporating the planning, control, and improvement structures. The purpose of the model is to take health aspects into consideration when deciding organizational structure (work demands, control and social support). The model controls health by using health-related indicators with high frequency measuring whereas workplace health promotion is done in a structured way with a reflective model.

Il prodotto interno materiale lordo dell'Italia nel 2000

The paper presents a physical input-output table (PIOT), in mass units, for the Italian economy of the year 2000. The intersectoral exchanges include the withdrawal of materials from the natural bodies for the economic processes: gases for the photosynthesis and respiration, metabolic and process water, stones, minerals and fossil fuels. The production and consumption activities are analyzed in branches according, as possible, the NACE-Rev1 classification recommended at European level for the I/O tables in monetary units. The processes of production and consumption generate residuals which are disposed into the natural receiving bodies; a fraction of the durable commodities and manufacts are considered immobilized in Stocks. The total mass flow of materials through the Italian economy in 2000 has been about 6.200 million metric tons (5.841 million of metric tons in 1995). The paper suggests the measurement of a Gross Domestic Material Product, formally similar at the GDP in monetary units, that resulted for the year 2000 about 760 metric tons per million euro (in 1995: 940 metric tons per million eurolire (1995)). The preparation and analysis of an I/O table in mass units, although in aggregate form, give indications on the modifications of the natural bodies, both following the witdrawal of materials for the economy, and as receiving bodies for residuals. The PIOT's in mass units, based on the principle of mass conservation, offers, if reliable statistical informations are available, an indirect check of national monetary accounting.

A Multi-Criteria Analysis of Sustainability Effects of Increasing Concentrate Intensity in Swedish Milk Production 1989–1999

The concept of sustainable development is forcing standard economic analysis to acknowledge and address the existence of dimensions of performance, which are not reducible to monetary accounting. In particular, the implementation of this concept in practice requires: (a) the simultaneous handling of indicators developed in different disciplinary fields; and (b) an approach more related to the procedures adopted by consultants (Participatory Integrated Analysis), rather than theoretical academic analysis looking for ‘the’ optimal solution. The case study considered in this paper is a multi-criteria analysis of changes, which occurred in the Swedish milk production sector for the period 1989–1999. Multi-criteria impact matrices and multi-criteria representations are used to provide a transparent method of integrated analysis. Changes are characterized and quantified in a way that makes it possible to relate the impact of existing trends in relation to different sub-objectives (variation in performance in relation to social, economic and ecological indicators). The results of this analysis confirm a few well known predicaments of sustainability associated with agriculture. The growth of Sweden economy is driving a major increase in material throughputs within its agricultural sector. The need of increasing agricultural throughput (especially labour productivity) has moved the Swedish dairy sector in a clear situation of decreasing marginal return ( = large increases in inputs are not reflected in a proportional increase in output). Therefore, sound policies of development of this sector aimed at increasing the goal of sustainability have to be developed by considering several indicators of performance, and not only economic variables.

Forecasting multivariate time series with linear restrictions using constrained structural state‐space models

AbstractThis paper presents a methodology for modelling and forecasting multivariate time series with linear restrictions using the constrained structural state‐space framework. The model has natural applications to forecasting time series of macroeconomic/financial identities and accounts. The explicit modelling of the constraints ensures that model parameters dynamically satisfy the restrictions among items of the series, leading to more accurate and internally consistent forecasts. It is shown that the constrained model offers superior forecasting efficiency. A testable identification condition for state space models is also obtained and applied to establish the identifiability of the constrained model. The proposed methods are illustrated on Germany's quarterly monetary accounts data. Results show significant improvement in the predictive efficiency of forecast estimators for the monetary account with an overall efficiency gain of 25% over unconstrained modelling. Copyright © 2002 John Wiley & Sons, Ltd.

Kaleckian Models of Growth in a Coherent Stock-Flow Monetary Framework: A Kaldorian View

:This paper presents a demand-led growth model grounded in a coherent stock-flow monetary accounting framework, where all stocks and flows are accounted for. Wealth is allocated between assets on Tobinesque principles, but no equilibrium condition is necessary to bring the “demand” for money into equivalence with its “supply.” Growth and profit rates, as well as valuation, debt, and capacity utilization ratios are analyzed using simulations in which a growing economy is assumed to be shocked by changes in interest rates, liquidity preference, real wages, and the parameters that determine how firms finance investment.

Inter-country environmental load displacement and adjusted national sustainability indicators: concepts and their policy applications

The focus of this paper is to discuss and show the policy relevance of displacement adjustments to national aggregate (macroeconomic) indicators for taking account of openness to the rest of the world. A national is considered as a set of production and consumption sectors interdependent with (i) natural processes and (ii) other national economies. In this structural perspective, three distinct concepts are put to work in the development of aggregate indicators. The first type of adjustment centres on accounting conventions, through an enlargement of the scope of national accounting to include specified monetary accounting for selected categories of environmental assets. This is the basis for construction of an Aggregate Indicator of the Change, during the Current year, in the economic Assets of the Nation (AICCAN for short). The second indicator type is based on hypotheses of adjustment of the itself that is, modelling of an adjusted economy which respects specified environmental performance standards. We call the corresponding indicators greened GDP (geGDP for short). In the third adjustment procedure, the AICCAN/geGDP concepts are maintained, and further classifications are introduced for making the distinction between costs borne and costs caused by a nation. A simple typology of the different types of between-nation load displacement is presented, and a variety of selected examples is presented of different types of inter-country environmental displacement indicator concepts and empirical results that can be found in the published literature. Perspectives are developed for future research that can deepen statistical analysis of patterns of ecologically unequal exchange between countries.

Kaleckian Models of Growth in a Stock-Flow Monetary Framework: A Neo-Kaldorian Model

This paper presents a simple growth model grounded in a stock-flow monetary accounting framework. The framework ensures that all stocks and flows are accounted for and that the real and financial sides of the economy are coherent with one another. Credit, money, equities, and stocks of real capital link periods of time with one another in articulated sequences. Wealth is allocated between assets on Tobinesque principles but no equilibrium condition is necessary to bring the demand for money into equivalence with its supply. Growth and profit rates, as well as valuation, debt, and capacity utilization ratios, are analysed using simulations in which a growing economy is assumed to be shocked by changes in interest rates liquidity preference, real wages, and the parameters that determine how firms finance investment.

On the Global Accounting Matrices for Environment and Economy (GAMEE)

The purpose of this paper is to propose a common accounting framework which overcomes the apparent polarization between the SEEA1) and NAMEA2) and which includes almost all the approaches and modules that the revised SEEA might require. It is hoped that this will then stimulate further discussion on the common framework for the revised SEEA.In a previous paper, the Complete SEEA (CSEEA) was proposed as an extension of the SEEA with a national accounting matrix (NAM), a detailed rest of the world account and a global environment account. It could also be seen as an extension of NAMEA, containing full balance sheets and a detailed rest of the world account.In this paper, the CSEEA will be further extended and elaborated, using physical accounts such as natural resource accounts and material flow accounts, and a comprehensive, flexible and consistent accounting framework which includes both physical and monetary accounting will be proposed. It is named as the Global Accounting Matrices for Environment and Economy (GAMEE) in order to stress its extended applicability to the multinational accounts and global environment accounts and also its comprehensiveness and flexibility on various approaches and modules.The GAMEE contains a physical accounting framework for environment and economy (PAFEE) and a monetary accounting framework for environment and economy (MAFEE) within a common framework. The GAMEE is an extension of the CSEEA with physical accounts and the CSEEA is an extension of the SEEA with a NAM. Therefore, the GAMEE maintains not only the basic structure of the SEEA but also close links to the SNA. Furthermore, it is an extension of the NAMEA and can include almost all the approaches and modules, which are required of the SEEA revision.

Forecasting Multivariate Time Series with Linear Restrictions using Constrained Structural State-space Models

This paper presents a methodology for modelling and forecasting multi-variate time series with linear restrictions using the structural state-space framework. The model has natural applications to forecasting time series of macroeconomic/financial identities and accounts. The explicit modelling of the constraints ensures that model parameters dynamically satisfy the restrictions among items of the series, leading to more accurate and internally consistent forecasts. It is shown that the constrained model offers superior forecasting efficiency. A testable identification condition for state space models is also obtained and applied to establish the identifiability of the constrained model. The proposed methods are illustrated on Germany's quarterly monetary accounts data. Results show significant improvement in the predictive efficiency of forecast estimators for the monetary account with an overall efficiency gain of 25% over unconstrained modelling.

« Ecological Economies: reintegrating the study of humans and nature » Robert Costanza Ecological Applications, vol. 6, n° 4, novembre 1996, pp. 978-990

In 1997, the global value of ecosystem services was estimated to average $33 trillion/yr in 1995 $US ($46 trillion/yr in 2007 $US). In this paper, we provide an updated estimate based on updated unit ecosystem service values and land use change estimates between 1997 and 2011. We also address some of the critiques of the 1997 paper. Using the same methods as in the 1997 paper but with updated data, the estimate for the total global ecosystem services in 2011 is $125 trillion/yr (assuming updated unit values and changes to biome areas) and $145 trillion/yr (assuming only unit values changed), both in 2007 $US. From this we estimated the loss of eco-services from 1997 to 2011 due to land use change at $4.3–20.2 trillion/yr, depending on which unit values are used. Global estimates expressed in monetary accounting units, such as this, are useful to highlight the magnitude of eco-services, but have no specific decision-making context. However, the underlying data and models can be applied at multiple scales to assess changes resulting from various scenarios and policies. We emphasize that valuation of eco-services (in whatever units) is not the same as commodification or privatization. Many eco-services are best considered public goods or common pool resources, so conventional markets are often not the best institutional frameworks to manage them. However, these services must be (and are being) valued, and we need new, common asset institutions to better take these values into account.

SUSTAINABLE MANAGEMENT OF COASTAL WETLANDS IN THE PHILIPPINES: AN EXPLORATION OF ACCOUNTING FOR SUSTAINABILITY

This article explores the possibility of reducing mangrove degradation in the Philippines, and enhancing attempts to obtain wetland sustainability, through the introduction of an environmental accounting system based on the opportunity cost of mangrove development. Problems relating to this form of ecological accounting are recognised; however, it is argued that it is better to attempt such an accounting, erring on the side of caution with respect to the environment, than to ignore the issue of mangrove degradation through a fear that any monetary accounting will subvert the conservation process. Following a discussion of the costs of conversion caused by development, the article considers the case for introduction of an assurance bond for developers as part of a Rubensteinian accountability mechanism. It is concluded that although an environmental accounting scheme has much to offer there are other hurdles to overcome before improved accountability for mangrove development can be facilitated in practice.

Non-monetary accounting: A necessary development for better managerial decisions

This study analyses critically the latest existence of non-monetary accounting: its uses today, its advantages and disadvantages, and the inevitable trends of a move away from total reliance on monetary accounting, especially now with the development of integrated information systems in modern enterprises.

Two Reforms of Charlemagne? Weights and Measures in the Middle Ages

W l rITHIN a few generations of the death of Charlemagne the organizational and political structure of his 'empire was destroyed. The geographical ties which had held together the empire, always a patchwork of conquests, were dissolved in the fratricidal struggles among the successors of the great Charles. His era of relative peace, intellectual consolidation, and economic prosperity, however modest, remained for centuries a memory of better times, a golden age, to European populations constantly harassed by Saracen, Norman, and Hungarian invaders. Hard times, however, could not eradicate those features of the Carolingian empire whose preservation was assured by their utility. The court hand, Carolingian minuscule, survived in manuscripts and scriptoria for centuries; the system of weights and measures decreed by Charlemagne remained to influence standards even into modern times. What were the metrological reforms introduced into Europe by Charlemagne ? There is at present no consensus among historians regarding this, one of the two most lasting vestiges of the Carolingian empire. We know that the monetary account pound was fixed by Charlemagne at 20 shillings and 240 pence; we know that the pound weight was divided into i2 ounces; we know also that a pound weight was often measured in shillings so that 2o shillings equalled a pound weight and an ounce equalled 2o pence. Such archetypal numerical relationships are clear and in their proper sphere useful, but unfortunately they do not reveal the basic unit of weight to which the divisions themselves apply, and without knowledge of these basic measures and weights, economic history is mute, condemned to statistical silence. It is the purpose of this paper to attempt to provide a new method of solving this problem, but first I must apologize to the reader for inflicting upon him a highly abstract and at times, perhaps, tedious argument, offering nothing more than the importance of the subject as my excuse. In the interest of clarity, however, a precis of the argument may be helpful: the documentation will be presented subsequently. First, we shall make an investigation of numismatic frequency tables of coin weights to determine the range of possible weights for the Carolingian pound, given the evidence of the surviving coins. Secondly, on the bases of historical convenience, logic, and internal consistency, we will postulate that the weight of a grain, the smallest subdivision of the pound, was once the same in France, Flanders, and England, but was subsequently altered. Then, employing a slight variant of the present English grain weight, the numerical grain content of the heavy Flemish gold mark' will be rendered in grams; this produces a