as regards the relative strengths of the coefficients of the exporting versus importing countries. The results of equation (2), while interesting, may be weak because of the crude nature of the restriction data and the possible inappropriate grouping of the restriction data according to mode of operation.7 Equation (1) is quite credible in the sense that a count of the existence of up to 12 possible restrictive practices could give an indication of a country's tendency to contract its traded goods sector by various policy measures. However, it is not surprising that an attempt to disaggregate this type of data into three separate variables in equation (2) was less successful. The regression results indicate that country practices restricting exchange rates, trade, and payments do affect trade flows among OECD countries. The fact that relatively significant results were obtained with very crude data suggests that bilateral trade flow models should include variables measuring these practices. Perhaps future reas regards the relative strengths of the coefficients of the exporting versus importing countries. The results searchers will attempt to create better quantitative measures of these types of restriction practices.

A bank's demand function for excess reserves is derived using inventory theory. In the model, banks hold excess reserves as a means of reducing the cost of meeting their reserve requirements in a world in which they are faced with random reserve flows and transaction costs. The resulting demand curve is kinked at very low interest rates (estimated to be between 0.3 and 0.5 percent for the Treasury bill rate). This kinked demand curve offers an explanation of the large accumulation of excess reserves during the 1930s that compares favorably with alternative hypotheses.

Auditing, Sampling, Substantive test, Auxiliary information interval estimation

Auditing, Sampling, Substantive test, Dollar-Unit sampling

Auditing, Statistical auditing, Jackknifed ratio estimation, Accounting population