Journal Article Models of Technical Progress and the Golden Rule of Research Get access E. S. Phelps E. S. Phelps Yale University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 33, Issue 2, April 1966, Pages 133–145, https://doi.org/10.2307/2974437 Published: 01 April 1966

John S. Y. Chiu, Errata: A Simulation Study of Effects of Multicollinearity and Autocorrelation on Estimates of Parameters, The Journal of Financial and Quantitative Analysis, Vol. 1, No. 4 (Dec., 1966), pp. 126-127

Introduction, 343. — Methodology, 345. — Patterns of concentration, 347. — Determinants of the pattern, 352. — Comparison with British experience, 356.

THE CELEBRATED factor price equalization theorem has a curious history. Ohlin (1933) introduced to English-speaking readers an important modification to international trade theory, replacing the classical simplification, of constant costs but differing production functions among countries, with the alternative simplification of identical production functions but differing factor endowments. While many economists have remarked on the unrealism of Ohlin's simplification, an important aspect of it has not, it would seem, always been sufficiently appreciated. This is the fact that the classical model assumed that production relations in different countries differed in a quite arbitrary fashion; no satisfactory way had been provided for explaining how such production relations differed. In the Ohlin model, on the other hand, an element of continuity was introduced, since continuous variation of factor endowments would yield continuous (rather than arbitrary) variation in production relations. Even if differences in production relations (specifically, in transformation functions) cannot be completely explained in terms of differences in factor endowments, the Ohlin model is nevertheless susceptible to amendments that preserve meaningful relationships between different countries' production functions. Ohlin's writings were greatly influenced by Heckscher (1919), whose work was not made available in English until 1949. Heckscher, in turn, acknowledged the influence on his thought of Wicksell (1919).' Ohlin asserted that there was a tendency towards factor price equalization as a result of free trade, but he tempered his argument with many qualifications, even to the point of asserting that equalization would never be complete. The partial equalization argument was taken up and made rigorous by Stolper and Samuelson (1941), and later Samuelson (1948,

N this study, intrafirm technical progress, or improvements in the state of the arts, are separated from scale economies and productivity changes due to interfirm shifts of resources, by fitting production functions and employing covariance analysis. With a view toward determining the sources of the resulting series of intrafirm technical change, several hypotheses are formulated and tested by using the distributed lag models and other relations. The Covariance Matrix method employed in this study (which method has not been used extensively, partly because the equations are non-linear in the coefficients) has a number of theoretical and statistical advantages over the traditional methods of measuring productivity, such as the single equation least squares method and the factor shares method. First, it permits the separation of technical advance from the contributions of physical factors without building into the empirical model the twin restrictive assumptions of constant returns to scale and competitive factor-pricing both being necessary conditions in the factor shares method ' as used by Solow,2 Kendrick,3 and others. Second, it enables us to dispense with the necessity of (artificially) imposing the condition of constancy (linear or log-linear) on the rate of technical change, as is commonly done in fitting production functions to timeseries data.4 Third, it is supposed to reduce the simultaneous equation bias of single equation least squares regressions 5 and weaken the tendency towards indeterminacy of the production function coefficients due to multicollinearity in aggregate time-series data.6 Last, being computed rather than obtained as a residual, the technical change series is net of random errors which, in the traditional residual methods, are collected in the productivity index.

William A. Schink, John S. Y. Chiu, A Simulation Study of Effects of Multicollinearity and Autocorrelation on Estimates of Parameters, The Journal of Financial and Quantitative Analysis, Vol. 1, No. 2 (Jun., 1966), pp. 36-67

Abstract In this article the author investigates the mathematical propriety of accounting measurement and calculations. The author has seen that the ratio scale and mathematical fields govern the mathematical propriety of accounting measurement and calculation, respectively. Given that p is the property to be measured and F the set of items a, b, c, ... possessing property p, one can quantify the content of property p in each item of F. A substantial portion of the problem of accounting measurement was then reduced to determining p and m(F).

Abstract The two levels of accounting, microaccounting on one hand and macroaccounting on the other, indicate not only that accounting is a rapidly expanding field but also that accounting plays an important role in today's complex economy. The purpose of this article is to explore the interrelationship between microaccounting and macroaccounting. More specifically, it attempts, firstly, to identify macroaccounting as a branch of accounting; secondly, to examine briefly the interrelationships among the four sub-areas of accounting and economics, i.e., microaccounting, macroaccounting, microeconomics, and macroeconomics; thirdly, to compare some of the basic similarities and dissimilarities between microaccounting and macroaccounting; and finally to explore potential influences of macroaccounting on microaccounting. The article concludes that the demand for additional information from accounting for managerial, investment, and analytical purposes points to the need for more constructive and creative thinking in accounting.