Econometrica, Vol. 69, No. 1 (January, 2001)
THE ECONOMETRIC SOCIETY ANNUAL REPORTS, 2000 REPORT OF THE TREASURER
SEATTLE, WASHINGTON AUGUST 10, 2000
OVER THE PAST DECADE the resources of the Society have exceeded its needs. 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 137 percent at the end of 1999, up from 64 percent at the end of 1991. This increase, experienced also by many other nonprofit institutions, reflects both the American stock market boom of the 1990s and the auditing requirement that unrealized 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.