Recent Revisions to Corporate Profits: What We Know and When We Knew it
7 Pages Posted: 6 Oct 2004
Initial estimates in the National Income and Product Accounts significantly overstated U.S. corporate profits for the 1998-2000 period. Subsequent revisions reveal that the profitability of the nation's corporate sector in the late 1990s was substantially weaker than real-time data indicated. An unexpected surge in employee stock options exercised - and perhaps, in some sectors, firms' inflated statements of profit - may help explain the large downward revisions.
Keywords: real-time macroeconomic data, corporate profits
JEL Classification: G10, E20
Suggested Citation: Suggested Citation