What question did this study set out to answer?

The aim is to adapt existing income measurement frameworks to account for uncertainty in financial performance.

Income Determination Under Uncertainty: An Application of Markov Chains.

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Analyzing income and performance measures in a firm under uncertainty, suggesting new modeling approaches.

The aim is to adapt existing income measurement frameworks to account for uncertainty in financial performance.
Adopted Hicksian concept of periodic income as a measure of well-offness.
Modified Fisher's model to focus on tree inventory as the wealth stock.
Limited analysis to future flows from currently standing trees, excluding anticipated future trees.
Showed that a modified approach to earnings determination can provide a more operational model.
Demonstrated that inventory wealth stock can closely reflect overall wealth in a firm.

John K. Shank (1971) studied this question.

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