{"product_id":"9781441906489","title":"The Power of Profit: Business and Economic Analyses, Forecasting, and Stock Valuation","description":"\u003ch1\u003eThe Power of Profit: Business and Economic Analyses, Forecasting, and Stock Valuation\u003c\/h1\u003e \u003ch2\u003eAnari, Ali; Kolari, James W.\u003c\/h2\u003e \u003cp\u003e\u003c\/p\u003e\u003cp\u003eHow can business leaders make better production and capital investment decisions? How can Wall Street analysts improve their predictions of future stock market values? How can government improve macroeconomic forecasts and policies? In \u003cem\u003eThe\u003c\/em\u003e \u003cem\u003ePower of Profit\u003c\/em\u003e, Anari and Kolari demonstrate how profit measures can be applied as the basis for these and many other applications of economic, policy, financial, and business analysis. The underlying theme of the book is that profitability is the driving force in free market economies. Firms invest in capital, produce goods and services, and generate sales in an effort to reap profits. Firms that are unprofitable exit the marketplace and are replaced by profitable firms. Despite the crucial importance of profits, however, there is no formal model that directly relates profits to capital formation and output. Previous studies over the past 100 years on profit and the economy are mainly descriptive in nature, without any well-specified model grounded in microeconomic theory. Filling this gap, the authors present a \u003cem\u003eprofit system model of the firm \u003c\/em\u003egrounded in basic accounting relationships in addition to the well-known Cobb-Douglas production function, which can be applied to individual firms, industries, and the business sector as a whole. \u003c\/p\u003e\n\u003cp\u003eThrough rigorous data analysis, the authors show how the profit system modelcan be applied to: \u003c\/p\u003e\n\u003cul\u003e\n\u003cp\u003e\n\u003c\/p\u003e\n\u003cli\u003emodeling the U.S. business sector and national economy\u003c\/li\u003e\n\u003cp\u003e\u003c\/p\u003e\n\u003cp\u003e\n\u003c\/p\u003e\n\u003cli\u003eforecasting output, capital stock, total profit, profit rates, and profit margins \u003c\/li\u003e\n\u003cp\u003e\u003c\/p\u003e\n\u003cp\u003e\n\u003c\/p\u003e\n\u003cli\u003eexamining the relationships among profitability, economic growth, and the business cycle\u003c\/li\u003e\n\u003cp\u003e\n\u003c\/p\u003e\n\u003cli\u003esimulating the effects of potential monetary policy changes on the business sector and national economy\u003c\/li\u003e\n\u003cp\u003e\n\u003c\/p\u003e\n\u003cli\u003evaluing the Standard \u0026amp; Poor’s stock market index as well as individual firms.\u003c\/li\u003e\n\u003cp\u003e\u003c\/p\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe result is a model thatintegrates microeconomic and macroeconomic factors and that can be widely applied in business and economic decisions, policymaking, research, and teaching.\u003c\/p\u003e \u003ch3\u003eDetails\u003c\/h3\u003e \u003cp\u003ePublished by: Springer\u003c\/p\u003e \u003cp\u003ePublication Date: 2009-12-04\u003c\/p\u003e \u003cp\u003eFormat: Hardcover\u003c\/p\u003e \u003cp\u003eISBN-13: 9781441906489\u003c\/p\u003e \u003cp\u003eDOI: 10.1007\/978-1-4419-0649-6\u003c\/p\u003e \u003cp\u003eDimensions: 235cm x155cm\u003c\/p\u003e \u003cp\u003ePages: 180\u003c\/p\u003e ","brand":"Springer US","offers":[{"title":"Default Title","offer_id":50148687937676,"sku":"9781441906489","price":98.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0710\/9545\/1788\/files\/9781441906489.jpg?v=1779567193","url":"https:\/\/fh90cf-fv.myshopify.com\/products\/9781441906489","provider":"Late Knight Books and Services, LLC","version":"1.0","type":"link"}