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Problems in Use of Accounting Data in the Economic Analysis of Income of the Firm

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posted on 2023-08-03, 13:05 authored by David Morris Fishbein

The fact that empirical data used in economic analysis must be examined very critically and, if necessary, corrected for statistical or personal bias is well recognized by researchers. For example, statistical series prepared by trade associations will often different substantially from similar series prepared by labor unions, and economists who are interested in producing objective studies, being aware of the pitfalls in the use of material from such sources, usually make necessary allowances for subjective elements. However there is one type of empirical information -- accounting data -- which economists do not always view quite as critically.

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