Accounting and Economic Theory

16 Pages Posted: 21 Jan 2003

See all articles by Martin Shubik

Martin Shubik

Yale University - School of Management; Yale University - Cowles Foundation

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

Shubik, Martin, Accounting and Economic Theory (October 15, 2002). Available at SSRN: or

Martin Shubik (Contact Author)

Yale University - School of Management ( email )

Box 208200
New Haven, CT 06520-8200
United States

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3694 (Phone)
203-432-6167 (Fax)


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