Journal Article New Results in an Old Framework: Comment on Samuelson and Modigliani Get access Luigi L. Pasinetti Luigi L. Pasinetti Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 33, Issue 4, October 1966, Pages 303–306, https://doi.org/10.2307/2974426 Published: 01 October 1966

Abstract The basic requirement of every academic editor is that each article be a scholarly contribution to knowledge of the field. Contributions in an academic journal may be made by recognizing new problems of the field and suggesting possible solutions. Opportunities for contributions comes when new techniques are devised or become available for the solution of old problems, or when some new programs or new thoughts not always forthcoming as promptly to avoid a new problem. Another type of scholarly contribution may be made in the form of historical analyses. Another dubious candidate for scholarly effort is the voluminous compendium of what others have said on a subject with no adequate or new criticism or evaluation. Manuscripts submitted by authors usually go to the printer in the case of an academic journal, so it should be clear and readable to the editor also. Editor's do have obligations, therefore, a broad view of the possible forms of scholarly contribution is also needed by the editor of a scholarly journal, certainly if the journal is designed for a fairly large and diversified audience.

I. A numerical example, 504. — II. Generalizations, 508. — III. A direct logical criticism, 510. — IV. Changes in the rate of profit and changes in the “quantity of capital, †512. — V. The trap of an old mode of thinking, 514.

Introduction, 314. — Definition of the precautionary demand for cash, 314. — The concepts, 315. — Optimal precautionary cash balances, 316. — Comparison with transactions demand for cash, 320. — Comparison with related studies, 320. — Appendix, 322.

Introduction, 652. — I. Assumptions, 652. — II. The cost-minimizing locus, 653. — II. Relationships of the cost-minimizing and efficiency loci, 655. — IV. The interdependence of cost and demand, 656. — V. Conclusion, 658.

Frederic L. Pryor, Trade Barriers of Capitalist and Communist Nations Against Foodstuffs Exported by Tropical Underdeveloped Nations, The Review of Economics and Statistics, Vol. 48, No. 4 (Nov., 1966), pp. 406-411

Abstract The above measures for minimizing exchange exposure do not comprise an all- inclusive list, but they do serve to illustrate possible components of a coordinated program of risk minimization. There are a number of inherent risks in doing business abroad-expropriation, price controls, governmental discrimination, inconvertibility of the currency, and gains and losses from exchange rate fluctuations. Management's greatest opportunity to minimize exchange losses is in the area of exchange exposure. The goal of management is the ideal exchange position in which no gains or losses due to exchange rate fluctuations can occur (net local currency assets less local currency fixed assets equals zero). There are some very definite measures which management can employ to minimize exchange exposure risk. Some of these measures are financial in character, such as local currency borrowing, purchases and sales of exchange forward or "swaps" contracts, cash management policies, and the use of local share ownership. Others are non-financial in character, such as the carrying of excess inventory which can be sold at increased prices if exchange rates decline or the investment of excess local currency cash in plant assets which will not depreciate in equivalent dollar value. Although these activities are classified as non-financial, the importance of the accounting system producing information on the need for and effectiveness of these measures must not be overlooked. If sound accounting information is provided to alert and capable management, there is much that can be done to realize normal profits on investment in foreign subsidiaries and minimize the effect of exchange rate fluctuations.

Abstract The essential conclusion of this paper is that investment and financing decisions must be kept separate. The ability to identify specific sources of funds with specific investment proposals is, at best, an illusion. This point of view is supported by an argument analogous to that applicable to many joint-cost problems of accounting as well as by the "pool of projects" and the "pool of funds" concepts. Investment decisions should be evaluated by the usual cash-flow techniques, as illustrated in this paper. The decision to finance by alternative methods should be based on the rate of interest to be charged which could legitimately be adjusted for differences in restrictions inherent in alternative sources of borrowed funds. Great care must be exercised to avoid the pitfall of constructing illusory discounted cash-flow differentials which are based upon apparent but not real differences in the amount of borrowings. As for leasing, the essential features of a long-term, non-cancellable lease must be understood; it is partially a method of financing and partially a method of investing. For proper evaluation, the financing aspects should be eliminated at the lowest rate of interest available to the company. With financing eliminated, the lease can then be compared to an outright purchase to determine which is the least costly method of acquiring the services of the equipment or facilities under consideration.