Econometrica, Vol. 67, No. 1 (January, 1999)
THE ECONOMETRIC SOCIETY ANNUAL REPORTS, 1998 REPORT OF THE TREASURER
AUGUST 29, 1998
AT YEAR-END 1997 the resources of the ES, that is, its net worth (NW), continued to increase relative 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 increased from 108 to 129 percent from 1996 to 1997. This increase, experienced also by many other nonprofit institutions, including most major U.S. universities, 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.