[The results of A. K. Sen and P. K. Pattanaik on sufficient conditions for the transitivity of simple majorities are extended to the case where it is not assumed that the individual's indifference relations are transitive.]
in the two sectors. Theorem 2 summarizes the discussion on this subject. The proofs of the proposition leading to Theorems 1 and 2 are illustrated graphically. In order to analyze the effect on the sign of the supply function in this economy, the ES of products with respect to their prices is expressed in terms of the parameters of the individual production functions. The expression shows clearly the augmentation effect observed by Johnson [1] (i.e., in the absence of distortion, the ES between products is larger than those which exist between factors). Finally, Theorem 3 states conditions under which the supply function is increasing, declining, perfectly elastic, or a combination of these.
[It is often argued that discount rate changes have a "psychological" impact on the public's expectations about the future course of the economy; it is alleged that such changes affect economic activity by influencing the expectations of businesses, financial institutions, and other economic actors. This study attempts to assess the veracity of the notion that there is such an effect of expectations. We begin with the premise that any change in expectations about future net cash accruing to business enterprises really reflects changes in expectations about future economic conditions in general, and that changes in expectations about future cash flows will be reflected in the discounted present value of business firms and hence the market value of equity shares. After removing systematic components from such data, and analysis of the random component strongly suggests that there is an "announcement effect" on expectations associated with discount rate changes, and that there seems to be a consensus as to what the inferred information content of such changes portends for future economic conditions. Also, on days immediately preceding discount rate decreases, there seems to be come evidence of anticipation of the change.]