I. Introduction, 197. — II. Substitutability: theoretical arguments, 198. — III. Empirical tests: general approach, 200. — IV. Conclusions regarding regulations and monetary policy, 213. — Appendix, 213.

Jerome L. Stein, Keizo Nagatani; Stabilization Policies in a Growing Economy1, The Review of Economic Studies, Volume 36, Issue 2, 1 April 1969, Pages 165–

In this paper a family of functional iterations is introduced. One member of this family is the Newton-Raphson method and another member, obtained from a generalization of Steffensen's method to a system of equations, has been considered in [7]. The general member of the family is derived from a regulafalsi construction, due to Gauss, for a particular choice of points in the iteration. From the computational point of view, all the members of the family of iterations, except the Newton-Raphson method, have the property that the partial derivatives of the system of equations are used almost never if a computing device with unlimited precision is utilized. Further, the asymptotic speed of convergence for any member is at least of order two. In view of the difficulties of obtaining the functional form of the second order partials of the likelihood function for general linear and nonlinear simultaneous systems, the method proposed here may be recommended in the computation of full information maximum likelih Dod estimates. Even if the partials of the system of equations are easily calculated, then some member of the family may still lead to convergence if the Newton-Raphson method does not. Practically speaking, the proposed method can be used to determine an approximate solution and this approximate solution will be closer to the solution if the precision of the computations is higher.

to the randomness of profits, rather than to errors in the measurements of K, which would imply a negative bias in p', this too could not explain away the observed negative as, since again one would expect bias /3' in this case too, to be less than one in absolute value. Thus, the observed negative cannot be explained as the consequence of using a bad cost of capital variable and therefore can be taken as an indication of greater capital-schooling (skill) complementarity.4

Robert H. Strawser, John M. Ivancevich, Herbert L. Lyon, A Note on the Job Satisfaction of Accountants in Large and Small CPA Firms, Journal of Accounting Research, Vol. 7, No. 2 (Autumn, 1969), pp. 339-345

Abstract The article discusses the importance of good communications and cooperation between the academic and practicing branches of the accounting profession. Over the years it has become increasingly apparent that good communications and cooperation between the academic and practicing branches of the accounting profession are vitally important to the continued satisfactory development of the accounting profession. Over the years the atmosphere has continued to change for the better. Cooperation between teachers and practitioners has extended over a wide front both on an individual and an institutional basis. The accounting profession is going through an unusual and difficult period. As in other areas of our society, basic assumptions are being challenged. The adverse publicity-whether well founded or not which was directed at the profession several years ago created a good deal of uneasiness both within and without the profession. Relations between teachers and practitioners have vastly improved in the past thirty years. But they can improve more. There could be more frequent personal association between teachers and practitioners at the local level-although in some states this already is happening.

Abstract The purpose of this article is to explore the applicability or non-applicability of tax allocation procedures to financial statements prepared on the basis of either current cost or price-level adjusted figures. Both current cost and price-level adjusted financial statements offer the balance sheet a position of more prominence than does the present-day historical cost approach. In the area of tax allocation, present practice and present theory are in basic agreement. Tax allocation can and should be rationally applied to historical cost statements, current cost statements or price-level adjusted statements. One weakness of the tax deferral approach is that it does not cover enough situations. For example, take the fairly common situation where a partnership incorporates, bringing in new investors at the same time. The books will often show assets at agreed-upon values at the date of incorporation, and these may differ sharply from the tax basis of the same assets. One type of objection to present practice points out that historic costs relate to the time periods in which assets were acquired, but are not meaningful expressions of value at later points in time. In contrast to historical cost, "the current cost of an asset is the sum of the current costs of the contained inputs."

Abstract The purpose of this study was to determine the incidence of reported changes in the consistent application of generally accepted accounting principles and practices, the nature of such changes, and their materiality. For a sample of 300 corporations chosen from Fortune's 500 and the New York Stock Exchange, changes in the principles of consolidation, the methods of computing depredation, and valuing inventory were found to be the chief reasons for auditors' qualifications during the nine years, 1955-1963. In general, there was relatively little concentration of qualifications for consistency among companies, industries, or CPA firms--either in total number, category, or year. As might be expected, more of the changes resulted in increasing reported net income than in decreasing it. The striking finding, resulting from the examination of the materiality of the reported changes was the predominance of those with an immaterial effect on net income. Possible "obvious" explanations were examined and found to be unsatisfactory. In response to Professor McCosh's admonition, it would appear from the data reported above that, if anything, accountants are overly zealous in disclosing consistency changes though they may not be as diligent in reporting the effects on net income. But, can readers of financial statements assume that this standard of reporting changes with little or no effect on net income is held by all accountants and is applied uniformly? This question will require further study.