Accounting and Economic Theory
16 Pages Posted: 21 Jan 2003
Date Written: October 15, 2002
This paper deals with the changing relationship between economic theory and accounting practice and theory. It argues that many of the basic problems encountered in practice cannot be avoided in any attempt to construct an economic theory adequate to handle dynamics. In particular problems of timing become critical. furthermore, there are several critical problems concerning profit maximization, the nature of the rate of interest, agency problems within the firm and the payment of dividends which cannot be dealt with unless there is an adequate reconciliation of accounting and economic theory.
JEL Classification: M40, A10, A12
Suggested Citation: Suggested Citation