Notes on 'a code for fiscal stability'

This note comments on two central issues for fiscal policy designin the UK, highlighted in the recent 'Code for Fiscal Stability'proposed by the new Labour government. The first concerns themerits of the so-called 'golden rule of public sector investment'- the proposition that, over the cycle, government borrowingshould not exceed government (net) capital formation. The secondconcerns the case for attempting to construct a more comprehensivebalance sheet of public sector assets and liabilities, includingtangible public sector assets and certain contingent claims.The two main conclusions are that the golden rule is withoutmerit but that, subject to some important caveats, the constructionof a more comprehensive government balance sheet is a worthwhileenterprise.     

Future Stock Performance of Oil and Gas Firms Conditional on the Imputed Value of Reserves

Review of Quantitative Finance and Accounting - Harris and Ohlson (1990) provide evidence suggesting market inefficiencies in the pricing of oil and gas firms in the 1979–1984 period. This...     

Book reviews

Ohne Zusammenfassung     

Konjunkturschlaglicht: Wann ist Geldpolitik neutral?

Ohne Zusammenfassung     

The Amount and Timing of Goodwill Write-Offs and Revaluations: Evidence from U.S. and U.K. Firms

This paper investigates criticisms that U.S. GAAP had given firms too much discretion in determining the amount and timing of goodwill write-offs. Using 1,576 U.S. and 563 U.K. acquisitions, we find little evidence that U.S. firms managed the amount of goodwill write-off or that U.K. firms managed the amount of revaluations (write-ups of intangible assets). However, our results are consistent with U.S. firms delaying goodwill write-offs and U.K. firms timing revaluations strategically to avoid shareholder approval linked to certain financial ratios.