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[[File:Stocks and Flows.svg|thumb|280px|Stock vs. flow]]
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[[File:StockFlow.gif|thumb|246px|Dynamic stock and flow diagram]][[Economics]], business, [[accounting]], and related fields often distinguish between quantities that are '''stocks''' and those that are '''flows'''. These differ in their [[units of measurement]]. A ''stock'' variable is measured at one specific time, and represents a quantity existing at that point in time (say, December 31, 2004), which may have [[capital accumulation|accumulated]] in the past. A ''flow'' variable is measured over an interval of time. Therefore a flow would be measured ''per unit of time'' (say a year). Flow is roughly analogous to [[Rate (mathematics)|rate]] or [[speed]] in this sense.
 
For example, U.S. nominal [[gross domestic product]] refers to a total number of dollars spent over a time period, such as a year. Therefore it is a flow variable, and has units of dollars/year. In contrast, the U.S. nominal [[Capital (economics)|capital stock]] is the total value, in dollars, of equipment, buildings, inventories, and other real assets in the U.S. economy, and has units of dollars. The diagram provides an intuitive illustration of how the ''stock'' of [[Capital (economics)|capital]] currently available is increased by the ''flow'' of new [[Investment#Economics|investment]] and depleted by the ''flow'' of [[depreciation]].
 
==Stocks and flows in accounting==
Thus, a stock refers to the value of an asset at a balance date (or point in time), while a flow refers to the total value of transactions (sales or purchases, incomes or expenditures) during an accounting period. If the flow value of an economic activity is divided by the average stock value during an accounting period, we obtain a measure of the number of turnovers (or rotations) of a stock in that accounting period. Some accounting entries are normally always represented as a flow (e.g. profit or income), while others may be represented both as a stock or as a flow (e.g. capital).
 
A person or country might have stocks of [[money]], financial [[assets]], [[liability (accounting)|liabilities]], [[Wealth (economics)|wealth]], real [[means of production]], capital, [[inventories]], and [[human capital]] (or [[labor power]]). Flow magnitudes include [[income]], [[expenditure|spending]], [[saving]], debt repayment, [[fixed investment]], [[inventory investment]], and [[labour (economics)|labor]] utilization.
 
==Comparing stocks and flows==
{{Details|Dimensional analysis#Commensurability}}
Stocks and flows have different units and are thus not ''[[Commensurability (philosophy of science)|commensurable]]'' – they cannot be meaningfully ''compared, equated, added, or subtracted.'' However, one may meaningfully take ''ratios'' of stocks and flows, or multiply or divide them. This is a point of some confusion for some economics students, as some confuse taking ratios (valid) with comparing (invalid).
 
The ratio of a stock over a flow has units of (units)/(units/time) = time. For example, the [[debt to GDP ratio]] has units of years (as GDP is measured in, for example, dollars per year whereas debt is measured in dollars), which yields the interpretation of the debt to GDP ratio as "number of years to pay off all debt, assuming all GDP devoted to debt repayment".
 
The ratio of a flow to a stock has units 1/time.  For example, the [[velocity of money]] is defined as [[nominal GDP]] / nominal [[money supply]]; it has units of (dollars / year) / dollars = 1/year.
 
In [[dynamical system (definition)|discrete time]], the change in a stock variable from one point in time to another point in time one time unit later (the [[first difference]] of the stock) is equal to the corresponding flow variable per unit of time. For example, if a country's stock of [[physical capital]] on January 1, 2010 is 20 machines and on January 1, 2011 is 23 machines, then the flow of [[net investment]] during 2010 was 3 machines per year. If it then has 27 machines on January 1, 2012, the flow of net investment during 2010 and 2011 averaged <math>3 \tfrac{1}{2}</math> machines per year.
 
In [[Dynamical system (definition)|continuous time]], the [[time derivative]] of a stock variable is a flow variable.
 
==More general uses==
 
Stocks and flows also have natural meanings in many contexts outside of business and its related fields. Thus stocks and flows are the basic building blocks of [[system dynamics]] [[model (abstract)|models]]. [[Jay Forrester]] originally referred to them as "levels" (for stocks) and "rates" (for flows).
 
A '''stock''' (or "level variable") in this broader sense is some entity that is accumulated over time by inflows and/or depleted by outflows. Stocks can only be changed via flows. Mathematically a stock can be seen as an accumulation or integration of flows over time – with outflows subtracting from the stock. Stocks typically have a certain value at each moment of time – e.g. the number of population at a certain moment. 
 
A '''flow''' (or "rate") changes a stock over time. Usually we can clearly distinguish inflows (adding to the stock) and outflows (subtracting from the stock). Flows typically are measured over a certain interval of time – e.g., the number of births over a day or month.
 
==Examples==
===Accounting, finance, etc.===
{| class="wikitable"
|-
| '''"Stock"''' || Possible '''units''' of stock || '''"Inflow(s)"''' || '''"Outflow(s)"''' || Possible '''units''' of flow
|-
| bank balance || euros || deposits<br>interest || withdrawals || euros per month
|-
| inventory of lumber || board feet || incoming lumber || outgoing lumber || board feet per week
|-
| housing stock || dollars || housing investment || housing depreciation || dollars per year
|-
| equity shareholdings || shares (of '[[stock]]') || purchases of shares || sales of shares || shares per month
|}
 
===Other contexts===
{| class="wikitable"
|-
| '''"Stock"''' || Possible '''units''' of stock || '''"Inflow(s)"''' || '''"Outflow(s)"''' || Possible '''units''' of flow
|-
| CO2 in atmosphere || tons || tons emitted || tons sequestered || tons per day
|-
| guests in a hotel || persons || guests arriving || guests leaving || persons per day
|-
| population || persons || births<br>immigration || deaths<br>emigration || persons per year
|-
| water in [[bathtub]] || liters || water pouring in || water draining out || liters per second
|-
| waste in disposal site || tons || dumping waste || decay of waste || tons per week
|-
| fuel tank || gallons || refueling || fuel consumption || gallons per month
|}
 
==Calculus interpretation==
If the quantity of some ''stock'' variable at time <math>\,t\,</math> is <math>\,Q(t)\,</math>, then the [[derivative]] <math>\,\frac{dQ(t)}{dt}\,</math> is the ''flow'' of changes in the stock. Likewise, the ''stock'' at some time ''t'' is the [[integral]] of the ''flow'' from some time when the time was zero until time&nbsp;''t''.
 
For example, if the [[capital stock]] <math>\,K(t)\,</math> is increased gradually over time by a flow of [[Investment#Economics|gross investment]] <math>\,I^g(t)\,</math> and decreased gradually over time by a flow of [[depreciation]] <math>\,D(t)\,</math>, then the instantaneous rate of change in the capital stock is given by
 
: <math>\frac{dK(t)}{dt} = I^g(t) - D(t) = I^n(t)</math>
 
where the notation <math>\,I^n(t)\,</math> refers to the flow of [[Investment#Economics|net investment]], which is the difference between gross investment and depreciation.
 
==Example of dynamic stock and flow diagram==
[[File:SFD ANI.gif|centre|'''Dynamic stock and flow diagram'''|frame]]
[[File:SFD VAL.gif|centre|'''Ten first stocks and flow values'''|frame]]
 
Equations that change the two stocks via the flow are:
 
: <math> \ \text{Stock A} = \int_0^t -\text{Flow }\,dt </math>
: <math> \ \text{Stock B} = \int_0^t \text{Flow }\,dt </math>
 
List of all the equations, in their order of execution in each time, from time = 1 to 36:
 
: <math>1) \ \text{Flow}= \sin( 5t ) </math>
: <math>2.1) \ \text{Stock A}\ -= \text{Flow}\ </math>
: <math>2.2) \ \text{Stock B}\ += \text{Flow}\ </math>
 
==History==
The distinction between a stock and a flow is elementary, and dates back centuries in accounting practice (distinction between an asset and income, for instance). In economics, the distinction was formalized and terms were set in {{Harv|Fisher|1896}}, in which [[Irving Fisher]] formalized [[Capital (economics)|capital]] (as a stock).
 
Polish economist [[Michał Kalecki]] emphasized the centrality of the distinction of stocks and flows, caustically calling economics "the science of confusing stocks with flows" in his critique of the [[quantity theory of money]] (circa 1936, frequently quoted by [[Joan Robinson]]).<ref>[[Joan Robinson]], "[http://cje.oxfordjournals.org/cgi/reprint/6/3/295.pdf Shedding Darkness]", Cambridge Journal of Economics, 6 (1982), 295–6: "it is the science of confusing stocks with flows. It is this confusion that has kept the [[Quantity Theory of Money]] alive until today."</ref>
 
==See also==
* [[Stock (disambiguation)]]
* [[Flow (disambiguation)]]
* [[Systems thinking]]
* [[System dynamics]]
* [[Wealth (economics)]]
 
==References==
{{Reflist}}
* {{citation
| title = What is Capital?
| authorlink = Irving Fisher
| first = Irving
| last = Fisher
| journal = The Economic Journal
| volume = 6
|date=December 1896
| pages = 509–534
| jstor = 2957184
| issue = 24
| doi = 10.2307/2957184
}}
* D.W. Bushaw and R.W. Clower, 1957. ''Introduction to Mathematical Economics'',  Ch. 3–6. "Section" & arrow-searchable pageChapter ("Section") and arrow-searchable page [http://babel.hathitrust.org/cgi/pt?id=uc1.b3513586 links.]
*[[Robert W. Clower]], 1954a. "An Investigation into the Dynamics of Investment," ''American Economic Review''. 44(l), pp. [http://www.jstor.org/pss/1803060 64]–81.
* _____, 1954b. "Price Determination in a Stock-Flow Economy" with D. W. Bushaw, ''Econometrica '' 22(3), p [http://www.jstor.org/pss/1907357 p. 328]–343.
* _____, 1968. "Stock-flow analysis," ''[[International Encyclopedia of the Social Sciences]]'', v. 12.
* George W. Harrison, 1987 [2008]. "Stocks and flows," ''[[The New Palgrave: A Dictionary of Economics]]'', v. 4, pp.&nbsp;506–09.
 
{{Commons category|Stock and flow diagram}}
 
[[Category:Economics terminology]]
[[Category:Inventory]]
[[Category:Accounting systems]]
[[Category:Systems theory]]

Latest revision as of 10:49, 26 December 2014

If you have the desire to procedure settings immediately, loading files fast, nevertheless the body is logy and torpid, what would you do? If you are a giant "switchboard" which is lack of effective management system plus efficient housekeeper, what would you do? If you have send your exact commands to your notice, nevertheless the body cannot do correctly, what would you do? Yes! We require a full-featured repair registry!

We all learn that the registry is the important component of the Windows operating system as it shops all information regarding the Dll files, programs found on the computer plus program settings. However, as days by, it really is unavoidable which you may encounter registry problem due to a big amount of invalid, useless plus unwanted entries.

System tray icon makes it convenient to launch the program and displays "clean" status or the number of mistakes inside the last scan. The ability to find and remove the Invalid class keys and shell extensions is regarded as the key blessings of the program. That is not usual function for the additional Registry Cleaners. Class keys and shell extensions which are not functioning may really slow down the computer. RegCure scans to locate invalid entries plus delete them.

There are tricks to make a slow computer work effective and quick. In this article, I might tell you just 3 best strategies or ways to prevent a computer of being slow and rather of that make it faster plus function even much better than before.

To fix the problem that is caused by registry error, you have to employ a tuneup utilities 2014. That is the safest plus easiest way for average PC users. But there are thousands of registry products available available. You have to discover a superior 1 which can definitely resolve a issue. If you use a terrible 1, you will expect more difficulties.

The first thing we should do is to reinstall any system that shows the error. It's typical for numerous computers to have specific programs that need this DLL to show the error when you try plus load it up. If you see a particular program show the error, you need to initially uninstall which program, restart your PC and then resinstall the program again. This could substitute the damaged ac1st16.dll file plus remedy the error.

Across the top of the scan results display page you see the tabs... Registry, Junk Files, Privacy, Bad Active X, Performance, etc. Each of these tabs may show you the results of that area. The Junk Files are mostly temporary files including web information, photos, internet pages... And they are really taking up storage space.

A system plus registry cleaner is downloaded from the web. It's simple to use and the task refuses to take long. All it does is scan plus then whenever it finds errors, it may fix plus clean those errors. An error free registry may safeguard the computer from mistakes and provide we a slow PC fix.