Journal Article Specialization in Production and the Production Possibility Locus Get access Lionel W. McKenzie Lionel W. McKenzie Durham, North Carolina Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 23, Issue 1, 1955, Pages 56–64, https://doi.org/10.2307/2296152 Published: 01 April 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.

Mr. Wright, in his presentation of the Sterling Area's gold and dollar accounts for the period I946-52, finds it convenient to include aid receipts by the United Kingdom and the overseas members of the Sterling Area along with their net balances from all other gold and dollar transactions, since his purpose is to draw attention to individual Sterling Area members' relationships to the centrally-held gold and dollar reserves. This method of presentation, naturally enough, obscures the great changes which have taken place during the postwar years in the Sterling Area's gold and dollar accounts before taking account of its members' receipts of dollar aid.' Data for I953 and I954 have been published since Mr. Wright prepared his tabulation of the Sterling Area's postwar gold and dollar accounts (Table I accompanying his article). When these two years are added to the record, and when Mr. Wright's figures are re-arranged to segregate the Sterling Area's receipts of dollar aid from the gold and dollar transactions exclusive of aid, it will be found as a first approximation that the nine postwar years can be most satisfactorily viewed in terms of the four clearly differentiated periods shown in Table i. Excluding its receipts of aid, the Sterling Area as a whole incurred a cumulative net gold and dollar deficit of $8.3 billion over the four years I946-49.2 The second period covers the year and a half from the beginning of I950 to mid-i95 I, when the Sterling Area had a large gold and dollar surplus (before counting aid receipts) of $I.2 billion, owing mainly to the favorable effects on its balance of payments of the realignment of world currency values toward the end of I949, a tightening of dollar import restrictions, and an inflow of dollars associated with the spectacular rise in Sterling Area raw material export prices which began shortly after the outbreak of fighting in Korea.3 The third period covers the twelve months from

Abstract The article discusses the application of statistical methods to accounting, auditing, and management control problems. It is part of a study in this area by a small group in Pittsburgh. The group, consisted of accountants and statisticians who reflect both academic and practicing points of view. The article reports on the progress of the work, and invites suggestions and appraisals from members of the accounting profession. The article focuses on the organization and general approach of the research, studies completed or under way, together with results achieved, and possible directions for future work. The significant points include the importance of the team approach, the need for obtaining guidance from fundamental requirements of accounting and auditing, and the necessity for proceeding in a fashion which protects the professional integrity of the statistician, as well as that of the accountant. The more rapid progress achieved in the areas of accounting procedures and management control devices, as contrasted with purely audit problems, has been specifically noted.