Abstract
The producer sectors comprise those units that produce direct utility in the form of goods 1 and services, and those that provide direct utility in the form of financial assets. In one sense, assets are essential to the continued operation of the first group, while liabilities are incurred only in order to maintain the desired levels of output and the associated required assets; in some regards, assets are minimised so that liabilities may be minimised. Conversely, liabilities are essential to the continued operation of the second group, while assets are held in order to maintain the desired levels of liabilities.
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Notes
For a further discussion of these effects, with some empirical verification, see A. S. Shaalan, ‘The Impact of Inflation of the Composition of Private Domestic Investment’, Staff Papers, IX, (1 July 1962 ), pp. 243–63.
B. Tew and R. F. Henderson, Studies in Company Finance (Cambridge, 1959 ).
I. M. D. Little, ‘Higgledy Piggledy Growth’, Bulletin of the Oxford Institute of Statistics, XXIV, 4 pp. 388–412;
and I. M. D. Little and A.C.Rayner Higgledy Piggledy Growth Again ( Oxford: Basil Blackwell, 1966 ).
K. Brunner and A. Meltzer, ‘Economics of Scale in Cash Balances Reconsidered’, Quarterly Journal of Economics, LXXXI (3 August 1967 ), pp. 422–36.
F. Lutz, Corporate Cash Balances, 1914–43, NBER Studies in Business Financing (New York, 1945 ).
J. S. Flemming, L. D. D. Price and D. H. A. Ingram, ‘Trends in Company Profitability’, Bank of England Quarterly Bulletin XVI, 1 (March 1976) pp. 36–52. This article refers to several other studies that have recently been made of this and related problems in the United Kingdom.
P. J. Rose and P. J. Sheehan ‘Company Profits, Finance and Capital Expenditure’, ‘Manufacturing and Non-manufacturing Companies’, The Australian Economic Review (4th quarter 1975), pp. 9–16.
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© 1978 Graeme S. Dorrance
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Dorrance, G.S. (1978). The Constrained Sectors: II. Non-financial Companies. In: National Monetary and Financial Analysis. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-15858-4_7
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DOI: https://doi.org/10.1007/978-1-349-15858-4_7
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