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This article presents the annual report of the treasurer of the Econometric Society for the fiscal year 2004-2005. For several decades, the financial goal of the Econometric Society has been to maintain the ratio of net worth (NW) to adjusted total revenue (ATR). This ratio should be 50%. In the late 1990's, the U.S. stock market forced the ratio far above that 50 percent goal and the Society decided to shift these gains from its NW to the welfare of its constituents. It was decided to provide substantial travel grants to the participants in its 2000 and 2005 World Congresses. Membership rates were also reduced in 2005 and 2006. An extra co-editor was provided to the Society's journal "Econometrica." The Society also made substantial investments in its web site. The planned attempt to use all of these methods to stop the growth of the NW/ATR ratio succeeded. These policies produced losses in the years 2000-2002 and reduced the NW/ATR ratio from 1.37 at the end of 1999 to 0.57 at the end of 2002. The NW/ATR ratio is currently on an upward trajectory, having reached 0.72 at the end of 2004.

The article presents the annual report of the treasurer of the Econometric Society. The society's surplus in 2003 was $147,953, far above the estimate, made at this time in the year 2003, of $16,000. Revenue other than capital gains was $23,660 higher than the estimate, and this difference occurred entirely in the category of dues and subscriptions income. Total expenses were $13,919 below the estimate, reflecting an unexpected drop in editorial expense that was partly offset by higher than expected expenses in several other categories. The financial objective of the Econometric Society has been to maintain its ratio of net worth (NW) to adjusted total revenue (ATR), that is, NW/ATR, at roughly 50 percent. The 2003 consolidated net surplus was $207,267. This sum is divided in the accounts among the basic surplus of $147,953, plus the $60,000 contribution to the World Congress fund, minus the $572 decrease in the value of the Marschak Fund. The revenue table shows an increase in the nominal revenue exclusive of special financial items by 159 percent.

This article focuses on the report of the treasurer from Econometric Society's (ES) annual reports. For several decades, the financial objective of ES has been to maintain its ratio of net worth (NW) to adjusted total revenue (ATR), that is, NW/ATR, equal to 50 percent. Starting with the volume year 2004, the structure of institutional prices and membership dues for the journal "Econometrica" will experience its most significant change in the history of ES. For the first time, electronic access will be available to all institutional subscribers, and a compulsory extra charge for electronic access will be included in all institutional prices. Mid-2003 circulation figures displayed in the top portion of data table I of the Secretary's report show a continuing erosion of institutional members but a sharp jump in regular and student members. Many, if not most, nonprofit institutions have experienced a decline in their net worth over the past two years as a result of the decline in the U.S. and foreign stock markets. In May 2003, ES's office marked the fourteenth anniversary of the Society's administrative assistant Maryann Semer's association with ES.

The article reports that many if not most nonprofit institutions have experienced a decline in their net worth over the past two years as a result of the decline in U.S. and foreign stock markets. For instance, the American Economic Association (AEA) experienced a 25 percent decline in its net unrestricted assets from year-end 2000 to year-end 2001, and presumably another substantial decline has occurred thus far in 2002. The unrestricted net worth of the Econometric Society (ES) has also declined over the past two years (between end-1999 and end-2001) but for an entirely different reason. Despite the decline in the stock market, the return on the ES unrestricted investment portfolio has actually been positive between August 1, 2000 and August 1, 2002, thanks to a well timed exit from domestic U.S. equities in February and May 2000. Instead, the decline in the net worth of the ES has been the result of a deliberate policy to spend the fruits of the stock market gains of the 1990s in ways that benefit our members, as detailed below.

This article reports on the financial state of the Econometric Society as of 2000. It discusses how the resources of the Society have exceeded its needs over the past decade. It also details the behavior of revenues and expenditures during the period. The article also presents projections for 2000 and 2001, as well as the implication of these projections. Recommendations are also given, which include increase of library rate and membership dues and review of editorial and administrative honoraria and salaries.

The treasurer of the Econometric Society reports on the expenditures and finances of the Society in 1997. Since 1980 the financial objective of the society has been to stabilize the ratio of end-of-year net worth to adjusted total revenues. As a result of the buoyant performance of the U.S. stock market, the Society's net worth has surged upward in 1995 to 1996 and at end-1996 has reached 108 percent, despite the provision of substantial travel grants to the 1995 World Congress, suspension of dues increases and publication of Members' Directories.

The secretary of the Econometric Society (ES) reports on the expenditures and finances of the society in 1995. During the period 1991 to 1992, ES experienced substantial financial losses that were largely intentional as a result of several explicit policies. Since 1982, the Society has set aside each year a contribution to its World Congress travel fund. ES balance sheets showed data on assets, liabilities and fund balance, and contributions to the Jacob Marschak Fund and the World Congress Fund. The article also provides a summary of the behavior of revenues and expenditures over a longer period.

Outlines the report of the treasurer of the Econometric Society, submitted on August 29, 1994. Since 1980 the explicit financial objective of the society has been to stabilize the ratio of end-of-the-year net worth (NW) to total revenues (TR) at a level of roughly 50 percent. Any tendency for the NW/TR ratio to grow substantially above 50 percent has been a signal that resources are available to be transferred back to the membership. As a result of this policy, during the period 1991 to 1992, the society experienced substantial financial losses that were largely intentional. As a result of several explicit policies, the NW/TR ratio fell from the end-1990 value of 0.71 to an end-1992 value of 0.58.

The report of the treasurer of the Econometric Society, submitted on August 26, 1993, is presented. Since 1982 the society has set aside each year a contribution to its World Congress travel fund. The 1991 consolidated net surplus was -$13,060. The loss of -$52,076 in the general fund is somewhat larger than the -$39,920 loss forecast at the same time in 1992. This error of -$12,156 occurred entirely on the revenue side; total expense was forecast accurately to within $1,000.

Presents the annual reports of the Econometric Society for 1992. In successive Treasurer's reports since 1980, the financial objective of the Society has been to stabilize the ratio of end-of-year net worth (NW) to total revenues (TR). The Society has made it NW/TR ratio the focus of its financial planning. Any tendency for the ratio to grow substantially above 50 percent has been a signal that resources are available to be transferred back to the membership. Details the following assets: cash, investments at cost, accounts receivable, back issue inventory, furniture and equipment, and other assets. Describes liabilities and fund balance. To end the string of financial losses experienced in 1991-1993, it will be necessary either to raise revenue or cut expenses. The solution is suggested by the fact that dollar library rates for "Econometrica" periodical have increased at only the United States rate of inflation since 1976. Since the real exchange rate of the dollar has declined by at least 20 period over the same time period, the real cost of the periodical to foreign libraries has declined substantially.

The article provides an overview of the 1986 report of the Econometric Society presented by treasurer Robert J. Gordon. The report covers the 1985 profit update of the organization, target revenue, expenditure, and surplus for 1986 and 1987, balance sheet, recommendations, and investment policy. The profits and losses of Jacob Marschak Fund and of the World Congress Travel Fund reflect the unstable figures in the fund balances with a total net loss amounting to $20,282. The impact of the travel grant program in regulating the total net worth of the organization is emphasized. Gordon recommends the approval of the oil price bonus through increase in membership dues and subscription rates in 1987.

The article presents the 1985 treasurer's report for the Econometric Society. The organization earned a record profit, which was contributed to the World Congress Fund and the Jacob Marschak Fund. The increase in the total net worth of the Society is tabulated in the report. The separation of the basic fund and the World Congress fund is for planning purposes, to simplify the operations. The increase of subscriptions to "Econometrica". Other categories accounted for the increase of actual revenues. These include the list rentals, income from North American meetings, income from interest and dividends.

The 1984 annual report of the treasurer of the Econometric Society is presented. It details the 1983 balance sheet and expense statement. The data provided by the report include the World Congress Fund, circulation revenue posted by "Econometrica," profit and expenditures. By mid-1983, the Society had invested $40,000 each in the Fidelity Equity Income Fund and the Fidelity Select Technology Fund. The evolution of the cost of composition and printing for one page of "Econometrica" since 1975 and the profit projections for 1984 and 1985 are discussed.

The article presents the annual report of the treasurer of the Econometric Society for the year 1981. The society did rather better than predicted in 1982. It posted an actual profit of $10,300. The higher profit was the result on an excess revenues over predicted revenues partly offset by an excess of actual expenses over predicted expenses. The projections for 1982 are extremely rosy. The predicted profit of almost $50,000 is already adjusted for the cost of a seventh issue of "Econometrica."

The article highlights the Report of the Treasurer from the Econometric Society Annual Reports, 1981. The report presented the society's balance sheets from 1976-1980. Financial projections for the years 1981 and 1982 were also presented. Recommendations for expenses and budgeting were also given in the report. According to the report, a comparison of the 1979 and 1980 results indicated that income from dues and subscriptions increased by 11.7 per cent, of which 8.0 per cent represented a fixed-weight increase in price.

The article presents the annual report of the Treasurer of the Econometric Society for the year 1978. It is reported that in the year 1977, the Econometric Society earned a small profit, despite its gift of free services to its members in the form of two extra issues of "Econometrica" and a printed membership list. The profit of $3,003 was $4,974 short of the $4,977 predicted previously. It is reasoned that because the Society collects about half of its subscription income before the end of the year preceding that when it delivers its journal, it can live comfortably with its fund balance at this modest level. At no time during 1977 did the Society hold less than $50,000 in liquid assets. When examined in more detail, the accounts for 1977 reveal that the accurate forecast of net profits conceals relatively large errors in forecasting individual categories of revenue and expense. Further, it is informed that the total expenses exceeded the forecast by 3.5 per cent, and revenues by 2.5 per cent.

The article presents a copy of the 1976 annual reports of the Econometric Society, as reported by the society's secretary on August 22, 1976. The circulation of the society's periodical "Econometrica" was maintained due to the membership of institutional subscribers, such as universities and libraries. The decline in student subscription could be due to the esoteric nature of some articles. Consultation work with Tieto Ltd. concerning circulation is continued. A chart showing the geographical location of members by region is presented. Included in the reports are the society's annual financial reports, nominations and ballots for the 1976 elections, meetings in 1977 and the society's office transfer from Evanston, Illinois and New Haven, Connecticut to Chicago, Illinois.

This section presents the reports of the President, Treasurer and the Secretary of the Econometric Society and the editor of Econometrica as of October 1975. According to the Secretary, previous reports have presented circulation figures for Econometrica based on physical shipments rather than paid-up subscriptions. Although this is trivial for most magazines and journals, the difference was substantial for Econometrica until recently, because shipments were not stopped for non-paying subscribers. Total circulation in 1974, including soft currency and free copies, was 5,768, down 16.5 percent from the average circulation reported for the 1968-73 period. According to the Treasurer's report, the Society was last audited in 1968, for the year ending December 31, 1967. If the income statements had been correct, the Society would have run a cumulative surplus during 1968-73 of $30,400 and would have arrived at 12-31-73 with a fund surplus of $31,900.

While the Consumer Price Index (CPI) is the best measure currently available, it is not a true cost-of-living index. It suffers from a variety of conceptual and practical problems as the vehicle for measuring changes in the cost of living. Despite import updates and improvements, it is likely that changes in the CPI have substantially overstated the actual rate of price inflation. Moreover, revisions have not been carried out in a way that can provide an internally consistent series on the cost of living over an extended span of time. More importantly, changes in the CPI are likely to continue to overstate the change in the true cost of living for the foreseeable future. This overstatement will have important unintended consequences, including overindexing government outlays and tax brackets and increasing the federal deficit and debt. The analytical and econometric research clone over recent decades has heightened economists' understanding of these issues. The time has come for governments in the United States and elsewhere to recognize these problems and act accordingly. That involves providing enhanced support for the statistical agencies to improve the price statistics with all deliberate speed in a non-politicized manner.

The high variance and continued acceleration of inflation during the 1970's pose new challenges to the time-series econometrician. The theme of this article is that inflation in the decade of nineteen seventies has depended not only on the level of aggregate demand and the role of inertia but also on a number of different supply shocks. Two of these, the increase in the relative price of oil and decline in the rate of productivity growth, have been outside of the direct control of the government, particularly in the short run. But both the variance and acceleration of inflation have been aggravated by three measures within the purview of government policy-makers: increases in the effective Social Security tax, increases in the minimum wage rate, and episodes of direct government intervention in the price-setting process. Because of their futility, these intervention episodes can be regarded as "self-inflicted wounds," like the tax and minimum wage changes that normally are described by this term.