Journal Article The Marginal and Average Propensities to Consume: Reply Get access J. C. Hubbard J. C. Hubbard Bryn Mawr College Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 69, Issue 4, November 1955, Page 647, https://doi.org/10.2307/1882005 Published: 01 November 1955

Introduction, 119. — I. Belief in the existence of the kink, 119. — II. Price patterns: rigidity, 127; the time period, 128; nominal versus transaction prices, 130; collusion and price leadership, 132; price rigidity of monopolies and heterogeneous oligopolies, 133. — III. Conclusions, 135.

The method used here represents an attempt to eliminate the influence of unspecified factors on the dependent variate in multiple regression analysis. It is applied in constructing a production function for British coal mining over the period 1943-53 and in estimating the elasticities of output with regard to labour and to horsepower, the latter indicating mechanisation. The statistical and economic significance of the results is examined.

outside the range of attainment once full employment is reached. For even discarding the oft-used but spurious (for the problem at hand) historical average growth rate of 3-3Y2 per cent, the ceiling rate (with little inflation) seems to be in the neighborhood of 6-7 per cent. But if income cannot grow at the (adjusted) required rates, neither can induced investment, which by definition is dependent upon income growth for its achievement. At the very least, then, the accelerator is an extremely doubtful generator of growth. It is with such thoughts in mind that we assert (or reassert) the importance of innovational (autonomous) investment in providing, on the one hand, the principal generating force of periods of sustained growth, and on the other, because of its inherent irregularity, the primary source of unstable growth known as the (major) business cycle.

Abstract This article says that an American, E.G. Folsom, made a praiseworthy attempt two generations ago to show the student that bookkeeping procedures reflect rational purposes and implement reasonable and understandable objectives. His pedagogical intention dearly was one of easing the learner's task by teaching him the thought processes behind the technical features of double entry. In this approach he displays a penetrating insight into the weakness of learning a technology by memorizing rules for dealing with typical situations. Perhaps Folsom was Conditioned by his education to attempt the broadening of instruction in bookkeeping. He signed his book as a master of arts and displays an acquaintance with the economics of his day far beyond that reflected in most contemporary text books on bookkeeping. One of Folsom's aims in writing his text, like that of many other authors, was to teach the student how to analyze transactions into debits and credits for entry into double entry ledger accounts.

Abstract This article focuses on problems in experimenting with the application of statistical techniques in auditing. In the first section of an article "Inadequacy of Some Experiments in the Past," published in the 1954 issue of the journal "Accounting Review," certain sample checks have been listed. The comment is that the reason for their lack of significance is that the experiments do not establish the relevance to the purpose of the audit, etc. This approach of working with an isolated phase of an audit was probably followed because it is much simpler than an attempt to tackle the audit as a whole. These statements indicate a misunderstanding of what was actually done. In the case of the a report the audit as a whole for the municipality was well established over a period of ten years before the case studies were begun. The purpose behind the report was to indicate how cases do occur during an audit where samples as a basis for judgment are both adequate and efficient. A report of this character should clarify something relative to the use of statistical methods in auditing.

Reviews the book "Income and Wealth," series I, edited by Erik Lundberg.

Reviews the book "Montgomery's Federal Taxes," 35th ed., by Philip Bardes Mark E. Richardson and James J. Mahon and John McCullough.

Abstract This article focuses on price-level adjustments. Since 1948 there has been a steady flow of articles on the implications of the price-level changes for accounting reports, by far the larger portion agreeing that these changes had undermined the reliability of the convention financial statements. Between World War I and World War II there had been a very substantial amount of writing with a quite similar import. Expressions of dissatisfaction with conventionally prepared financial statements are widest in periods of rising price levels. At times such as these the detractors of accounting statements bemoan the fact that these statements do not use figures which represent "economic realities," whether asset values, or costs of production, or net income. It is not enough to state an ideal, the approximation of economic income "in accounting terms." The statement that the committee did not attempt to define economic income contains a curious double implication. The purpose of income calculations in practical affairs is to give people an indication of the amount which they can consume without impoverishing themselves.