Based largely upon data derived from federal estate tax returns, this report investigates the distribution of wealth in the United States in the years 1922-56, and finds important changes in the degree of economic inequality. More than 100 tables and 37 charts illustrate the author's findings.

In a previous paper we reviewed the literature on normative stock price models. These models specified the present value of a share of common stock to be equal to the discounted value of dividends accruing to the holder. Using continuous discounting, the present value of a share is (1) where Dt is the dividend rate at time t and k is the cost of equity capital. Presumably k is a function of both the stockholders' time value of money and the perceived risk or uncertainty associated with the future dividend stream.

Reviews the book "Inflation, Deflation, Reflation: Management and Accounting in Economic Uncertainty," by J.P. Wilson.

There is a need in cost and budgetary control for information on the significance of cost variances. The conventional tests of absolute or relative dollar magnitudes are inadequate. The probability of a variance resulting from random, non-controllable causes is also important. By using the properties of a normal probability distribution it is possible to devise a method for computing the probability significance of cost variances. By combining the costs and rewards of investigation with the associated probabilities, a model can he constructed to aid in the decision of when a variance should be investigated. In the illustrative model, presented in this article, the formal distribution has been used. In some cases, the cost characteristic may make the assumption of normality unrealistic. There is no reason why the analysis could not be modified to accommodate some other probability distribution and also some other budget philosophy. However, the normal distribution is easy to work with and in most cases it is probably a reasonable approximation, particularly if the budget philosophy is not one of selecting the lowest possible budgeted amount (highest possible efficiency). Given any definite budget philosophy, a reasonable probability distribution could be chosen and the remaining analysis would he much the same as that suggested above. Such analysis should facilitate management by exception as applied to cost control.