Econometrica, Vol. 68, No. 1 (January, 2000)
THE ECONOMETRIC SOCIETY ANNUAL REPOR TS, 1999 REPOR T OF THE TREASURER
SANTIA GO DE COMPOSTELA, SPAIN AUGUST 28, 1999
FOR SEVER AL YEARS the resources of the Society have exceeded its need s. The target variable for Society management has been the ratio of net worth (NW) to adjusted total revenues (ATR , that is, total revenues minus capital gains). In contrast to a target NW/ATR ratio of roughly 50 percent that has guided financial planning for the past two decades, the ratio reached a peak of 129 percent at the end of 1997, up from 64 percent at the end of 1991. This increase, experienced also by many other nonprofit institutions, reflects both the Amer ican stock market boom of the 1990s and the auditing requirement that unrea lized capital gains must be recognized as revenue in the year in which they occur. This increase in the NW/ATR ratio occurred despite the provision of substantial travel grants to the 1995 World Congress, allowance for larger grants to the 2000 World Congress, suspension of dues increases, and publication of Members’ directories in both 1995 and 1997.