Recent revisions to corporate profits: what we know and when we knew it

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.Corporate profits ; Stock options ; Statistics ; Economic indicators

Contributor to the November Issue/Notes

Notes by Charles G. Hasson, Robert J. Mahoney, Robert E. Sullivan, John Kelly, John D. O\u27Neill, John M. Anderton, Charles R. Gerard, R. A. Macdonell, William B. Ball, Robert E. Sullivan, and Leonard D. Bodkin

Contributor to the November Issue/Notes

Notes by Charles G. Hasson, Robert J. Mahoney, Robert E. Sullivan, John Kelly, John D. O\u27Neill, John M. Anderton, Charles R. Gerard, R. A. Macdonell, William B. Ball, Robert E. Sullivan, and Leonard D. Bodkin