The increase in corporate liquidity over the past ten years, together with higher levels of interest rates and growing sophistication among corporate treasurers and bank portfolio managers, have contributed to the increasing importance of various money-market instruments. The relative position of the Treasury bill has declined, and bank time certificates of deposits, short-term issues of municipalities, and commercial paper have assumed greater importance. The fundamental reason for the attractiveness of alternatives to Treasury bills is, of course, the additional yield that the investor can obtain in the substitute instruments. The differential yield spread over Treasury bills can be explained substantially by two factors—the difference in marketability and the existence of some default risk on the alternative securities.

Incan Empire, Accounting, Double entry Bookkeeping

the value of exports. The analysis is based on cross-sectional value and quantity series, and it is conceivable that the quantity data, from which our unit value series are constructed, contain a fair margin of errors. The reliability of unit values with respect to the aggregation problem is examined, and measurement errors in the quantity series may have biased our estimates of elasticities towards minus one. Since it is often the case that the estimation of price elasticities in international trade has to rely on unit value series, we maintain that bias due to inaccurate quantity data should be taken seriously.

Treasury task force, which overhauled the regulations, attempted and succeeded in narrowing the gap between consolidated income tax reporting and consolidated reporting for financial statement purposes. The purpose of this article is to discuss some of the major changes and point out how these new regulations narrow the taxable and accounting income gap for consolidations. The "one entity" concept was not accepted "in toto" by the drafters of the new rules. Accordingly, the new regulations do not accept the historical Congressional interpretation that separate, legal corporations, should not obscure the fact that an affiliated group is a single corporation owned by the same individuals and operated as one unit. A series of computations and sub-computations are necessary whenever one undertakes the preparation of the consolidated return and the computation of the consolidated tax liability. A logical starting point is to determine, in accordance with the consolidated return rules, the separate taxable incomes of each member of the affiliated group. The first step is to compute separately for each member of the group all items of income or deductions in substantially the same manner as if separate returns were filed.

SUBSTANTIAL interest in recent years has centered on the relationship between personal earnings and a myriad of education related variables.' In this paper we present estimates of the impact on earnings of schooling, an index of ability, and a set of other relevant variables for a cohort of recent entrants to the labor market who have had some graduate education in the arts and sciences. Aside from a purely intellectual curiosity, there are several other reasons for investigating the annual earnings for a group of this sort. First, estimates of an earnings function are necessary for calculation of rates of return to various quantities of educational investment. To date, very little work of an economic nature has been done in the growing field of graduate education.2 It is hoped that the estimates presented in this paper may be viewed as an exploratory attempt to come to grips with problems in this important and neglected area. Secondly, we have explicitly attempted the specification of an earnings relationship which allows the differential impact of schooling related variables to depend on the values of other relevant explanatory variables.3 The existence of such interactive effects is interesting in itself and has important implications both for the rate of return analyses already available in the literature and for any further work on graduate education which may be attempted. Finally, there is substantial interest in the specification of an earnings relationship which explicitly attempts to deal with the slippery concept of ability to earn income. We would like to know: (a) What sort of ability index is relevant in the context of highly educated persons, (b) the quantitative importance of an ability index, and (c) how parameter estimates of schooling related variables are changed by the inclusion of an ability variable. We do not hope to provide definitive statements on these issues, but our results should be of some interest to those working on related problems in the economics of education. The plan of the paper is as follows: Section I outlines the nature of the data, variables, and methods used in estimation. Sections II and III present the results of the additive and interactive models. Section IV contains a few concluding remarks.

Discounted Cashflow, Planning Horizon, Forecast horizon