Knowledge that Transforms

THIS PAPER IS A SURVEY of Marxist and other radical interpretations of interactions among the three worlds of advanced capitalism, socialism, and the less developed countries (LDCs). It includes, first, analyses of the causes, aims, and methods of capitalist imperialism. The survey next examines the impact of world capitalism on LDCs, including theories of dependency and unequal exchange and the role of international agencies in the development process of LDCs. The third general topic is that of domestic policies of the LDCs, such as policies of import substitution and export promotion, as well as other social programs aiming for development. The survey, finally, extends to the efforts of some less-advanced countries to achieve socialist societies-that is, to issues of the transition process from precapitalist or immature capitalist economies to socialist ones. Wherever possible, we appraise or raise questions about the radical literature, for the purposes of guiding readers who are unfamiliar with the terrain and of stimulating radicals to improve their efforts in these areas. By radical literature we mean that which is highly critical of capitalism, favors socialism, and often employs Marxian analysis. Marxian analysis contains an economic interpretation of historical changes, which employs the categories of the productive forces, the relations of production, and the superstructure; the view of the primacy of the production process in establishing class structures, other social relations, and noneconomic institutions and

G REAT WORKS often do not immediately get the attention they deserve. David Hume's Treatise of Human Nature fell, in his own words, dead born from the press.' John Stuart Mill's Subjection of Women was received coolly (it was the only book of Mill on which his publisher lost money).2 Bertrand Russell has recorded his disappointment at the reception that Principia Mathematica got: I used to know of only six people who had read the later parts of the book. Three of these were Poles, subsequently (I believe) liquidated by Hitler.3 remaining three readers apparently got back to their old lazy ways soon enough: The other three were Texans, subsequently successfully assimilated-a result as bad as being liquidated so far as the effect on the deserted Principia Mathematica

Jerry G. Thursby, A Test Strategy for Discriminating between Autocorrelation and Misspecification in Regression Analysis: Reply, The Review of Economics and Statistics, Vol. 67, No. 1 (Feb., 1985), pp. 177-178

This study examines institutional production of higher education. An interesting aspect of this production process is that two of the more important inputs, students and faculty, enter upon considerable self-selection. To address this interdependence, the production relationship is specified by a three-equation simultaneous model in which the quality of college output, faculty, and students are treated endogenously. The significance of simultaneity is demonstrated in an em- pirical model estimated via three-stage least-squares for a sam- ple of 174 private undergraduate institutions. The results offer clear implications regarding the allocation of institutional re- sources across the basic factors in educational production. This paper examines the input-output relationship for private undergraduate education. The study falls generally within the economic literature that has analyzed the educational process via a production function specification (Astin, 1968; Bowles, 1970; Summers and Wolfe, 1977; Hanushek, 1979; McGuckin and Winkler, 1979). However, we extend the argument that research assessments of the educational process are not dealing with a production function in the classic sense. For example, the purchaser of the product-the student-is also one of the more important inputs. Further, the non-profit orientation of most universities reduces incentives for cost minimization.' The implication is that the educa- tional process is far more complicated than a simple, production-functional rendering indicates. To demonstrate this point, we estimate a three-equation simultaneous model in which the quality of students, faculty, and college output are treated endogenously.2 This study's broad objective is to identify more clearly the relative contribution of the many human and nonhu- man resources combining to produce quality under-