25 Recording of Financial and Operational Leases and of Income on Zero- and Low-Coupon Bonds


In Chapter 3 of this volume, attention was drawn to the requirement that ownership of the factors of production and of goods and services is essential for both the allocation of the income accruing from the application of these factors and the identification of the various stages of the production and consumption process. In that paper, the nature of ownership was defined as “the capacity that it provides to the owner to determine the disposition of an asset”; further, it was suggested that “only the owners control whether assets are employed or remain idle, whether assets are passed to another, and whether assets are consumed or destroyed” (page 28). In addition, it was suggested that “the existence of such control usually exposes the owners to the risk of changes in the price of their assets and, in general, to regulatory strictures and other economic forces. . . . [and that] without such exposure, the intervention of governments in the market could do little to alter economic behavior” (page 28).

Author: Vicente Galbis