[In this study, a dynamic initial investment-borrowing model involving nonconvex investment effects and borrowing limitations is formulated as a discrete-time control problem. In the model, the firm's objective is to maximize, subject to constraints, the net worth of the firm over a finite decision-making period. Initial investment and borrowing are control parameters; and the scale of capacity use is the control variable. Investment costs, which reflect the "six-tenths" rule in particular, are nonconvex. Special considerations are thus involved in deriving the investment and borrowing rules. It is shown that the optimum must be at one of the following three points: (i) no investment and no borrowing, (ii) investment of just the endowment, and (iii) investment of the maximum amount possible. This result is especially important computationally, because the problem is convex at the points described by (ii) and (iii), and trivial at the origin. Therefore, the optimum may be computed by the use of published algorithms.]

[An economic framework is presented for measurement of the net social benefits that can be attributed to development of a new outdoor recreation site, taking into consideration the influence that existing recreation developments have on the demand for services from the newly developed site. Methods are given for statistically estimating the empirical measures needed to apply the model, and an application is made to water-oriented outdoor recreation in Missouri. Results of the application suggest that investments in outdoor recreation can be evaluated under an objective economic decision criterion.]

This paper presents an empirical analysis of the determinants of negotiated wage changes using a pooled sample of time series observations for fourteen Canadian manufacturing industries. Data on individual contracts are used in an attempt to allow for the discontinuity of wage adjustments given the predominance of collective bargaining and variable contract length. Using a nonlinear formulation, profit levels, the unemployment rate, the rate of change of prices, and other variables are found to be statistically significant. DURING THE PAST decade a considerable amount of econometric research has been devoted to the explanation of movements in wages. Most empirical studies have used a basic disequilibrium model, first suggested by Phillips [11] in which the change in money wage rates is related to the level of unemployment. By relaxing some of the more rigid theoretical assumptions, the basic Phillips curve explanation has been expanded to include a number of other variables such as profits, prices, productivity, employment mix, etc. While many of these studies have provided valuable insights into the wage determining process, the statistical approaches used have often failed to deal adequately with the institutional features of the labor market. These statistical problems are briefly discussed in Section 1 of the paper and our own empirical analysis using data on individual contracts in Canada is presented in Section 2. The main implications of our study for the aggregate Phillips curve are given in Section 3.

[This paper describes empirical laws (formulated abstractly, as axioms) that lead to simultaneous measurement of utility and subjective probability under circumstances where decisions delimit which states of nature may occur.]