Treasurer's Report (2013)

Econometrica, Vol. 82, No. 1 (January, 2014), 435–441




1. 2012 ACCOUNTS

TOTAL ASSETS OF THE ECONOMETRIC SOCIETY stood at $2.71 million at the end of 2012 compared to $2.65 million in 2011. The Society’s net worth stood at $1.88 million, an increase of 8.2% over the year. The increase in net worth was attributable partly to the capital gains on the Society’s financial portfolio, which increased from $2.287 million to $2.404 million in 2012. Table I presents the balance sheet of the Society from 2009.

When financial gains and exceptional items are excluded from the analy- sis, the picture is less rosy. Table II gives the revenues of the Society and Ta- ble III gives the expenses. Non-financial income from the Society’s publishing and meetings activity has remained static at around $1.2 million, in spite of increases in subscription and membership rates. In contrast, the operating ex- penses of the Society have increased steadily since 2009. Figure 1 below sum- marizes the operating revenue and expenses from the Society’s core activities from Tables II and III.

The increase in operating expenses reflects the higher costs on publishing activities following the launch of the Society’s two new open source journals, Theoretical Economics andQuantitative Economics in 2010, as well as the in- crease in overall page count of the Society’s journals. The increased costs also reflect the higher distribution and management expenses following the tender and renegotiation of the Society’s publishing contract in 2011 and 2012. Net operating income from the Society’s publishing and meetings activity was in deficit in 2012, at −$136,211 and the deficit is expected to increase in 2013, with expected 2013 net operating income at −$197,500.

The static nature of the operating income in the face of increases in sub- scription and membership rates reflect the declining trend in library subscrip- tions and suggest limited scope for increasing revenue through higher subscrip- tion rates alone. A possible source of income in future is charitable donations. Following the Society’s incorporation as a Delaware non-stock corporation in December 2012, the Society is applying for charitable status to the US In- ternal Revenue Service which will allow the Society to receive tax-deductible gifts. Other activities that can bolster the Society’s income are also being explored.

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