Knowledge that Transforms

[Proposals for the computation of competitive equilibria in the presence of taxation contained in recent joint work by the author are applied to a model of the United Kingdom economy and tax system for the period 1968-1970. Difficulties of model specification and parameterization are also discussed. Results provide indications of efficiency, distributional, and welfare impacts for a number of alternative tax changes.]

[The existence of an equilibrium solution for the open expanding economy model of Morgenstern-Thompson is proven under weaker assumptions than originally used.The proof is based on a theorem of the Farkas type formulated for finite dimensional linear spaces ordered by means of cones.]

[We construct a monthly model of supply and demand for chartered banks' loans to business firms in Canada. Recent disequilibrium econometric methods are used to take into account possibilities of rationing.]

IN THEIR INTERESTING PAPER, External Diseconomies in Consumption and Monopoly Pricing [3], I. Luski and R. Lusky (LL) have presented a result concerning the respective value of the monopoly price and the socially optimal price of a private good, the consumption of which inflicts external diseconomies. But their presentation is incomplete because they consider a model with only one good freely available, forget to take into account the distribution of income, and limit the proof of the main theorem to a special case. These deficiencies make appreciation of the validity of the result difficult. We shall discuss here the same problem in the framework of the simplest consistent model.

Recent studies by Durbin and Watson [5], L'Esperance and Taylor [10], Koerts and Abrahamse [8], Tillman [15], Vinod [16], Savin and White [14] and others have shown increasing interest in the test of autocorrelation based on the d statistic proposed by Durbin and Watson [3 and 4]. The focus of these papers has been the computation of the exact distribution of d and the power of the test based on d. The exact distribution of d has been developed by Imhof [7] and Pan Jie-Jian [12]. However, few of the generally available computer programs for regression analysis incorporate these methods,2 possibly because of computational costs, particularly for large samples. With the Durbin and Watson [4] tables the bounds test is restricted to time series regressions with 15 to 100 observations and a maximum of 5 regressors in addition to unity. Often regression studies do not meet these restrictions since samples with less than 15 observations commonly occur with annual time series and regressions with more than 5 regressors are often found in the context of simultaneous equations and of distributed lags.3 In this paper we present extended tables for the bounds test. Our tables can be used for samples with 6 to 200 observations and for as many as 20 regressors.

[This paper considers the least squares estimator of @? extasciicircum2 in the linear model with disturbances generated by a first-order autoregressive process. It is well known that the estimator is biased. In this paper an attempt is made to establish bounds for the bias. These bounds depend on n, k, and @r, where n is the number of observations, k is the number of parameters, and @r is the (positive) coefficient of the autoregressive process.]

[It has already been proven that when production is described by differentiable supply functions, the equilibrium correspondence is continuous for "most" economies [7 and 8]. The present paper generalizes this result to situations where production activities are described through a certain class of correspondences: namely, those which have a smooth graph and are such that the profit function is differentiable.]