Journal Article Economics of Depletable Resources and Price Ceiling Induced Bias Get access Dwight R. Lee Dwight R. Lee Virginia Polytechnic Institute and State University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 5, October 1980, Pages 999–1002, https://doi.org/10.2307/2296929 Published: 01 October 1980 Article history Received: 01 May 1979 Accepted: 01 April 1980 Published: 01 October 1980

This paper examines two alternative models of the process generating stock returns. Under the calendar time hypothesis, the process operates continuously and the expected return for Monday is three times the expected return for other days of the week. Under the trading time hypothesis, returns are generated only during active trading and the expected return is the same for each day of the week. During most of the period studied, from 1953 through 1977, the daily returns to the Standard and Poor's composite portfolio are inconsistent with both models. Although the average return for the other four days of the week was positive, the average for Monday was significantly negative during each of five-year subperiods.

Auditing, Internal control system, Judgment variance, Experience

Three broad theoretical constructs almost universally applied in analyses of productivity growth (1) production sets and their efficiency frontiers (production functions) which sharply delineate the set of input-output possibilities known and available to firms at any time; (2) technological knowledge, which at any time determines production functions and the advance of which shifts production functions; and (3) research and development, specialized activities that advance technological knowledge. Economists tend to consider these broad constructs as solidly grounded and universally applicable. In contrast, the author argues that these are fragile and overworked, and actually misleading for thinking about productivity growth in some economic sectors. More than that, the presumption that they are applicable across all economic sectors obscures exactly those differences which may be the most important ones in explaining cross-sectoral variations in productivity growth rates.

This paper shows that a "precautionary" demand for money can be derived in models of the state of nature variety with uncertain cash requirements even if sales of assets incur no real costs and investors are risk-neutral. The randomness of asset prices results from uncertainty about the future state of the world that determines cash requirements, hence particular market responses and ultimately equilibrium prices. Positive correlation between the amount of assets to be liquidated and the liquidation price is a sufficient condition for the derivation of an interest-elastic demand for liquidity. The correlation coefficient is a "measure of illiquidity" of a perfectly marketable asset. Interesting comparative static results are also derived.

[In this paper, Pareto efficiency properties of a non-Walrasian equilibrium for an exchange economy are analyzed. The equilibrium considered is a generalized version of Drèze's equilibrium with price rigidities and rationing.]

James A. Miles, John R. Ezzell, The Weighted Average Cost of Capital, Perfect Capital Markets, and Project Life: A Clarification, The Journal of Financial and Quantitative Analysis, Vol. 15, No. 3 (Sep., 1980), pp. 719-730

In the theoretical literature of finance, it has been assumed for some time that capital markets are efficient, with security prices reflecting all available information [10]. One purpose of this paper is to consider market efficiency in the context of rights offerings. It has recently been suggested, for example, that rights offerings afford positive abnormal returns [17, 18]. This view was immediately countered by the comment that the number of rights issued, and inversely the issue price, cannot affect the market value of the total exrights equity market [21, p. 44]. No empirical evidence was offered on either side, however.