IN 1966, the Coleman Report provided compelling evidence of the importance of the home environment in determining children's cognitive skill levels. This evidence, coupled with doubts about the effectiveness of school-based compensatory education programs, has led policymakers to consider programs that aim at improving school achievement by providing additional resources to the families of low achieving children. Efforts to design such programs have been hindered, however, by a lack of knowledge concerning the key resources in the home that influence children's achievement. This paper reports the results of research that attempts to reduce this knowledge gap by examining the roles played by particular resources in the home in influencing children's achievement. This study extends previous work on home investments in children in two significant ways. First, the analysis focuses on black children living in low income, urban families. Most previous research has studied children in middle class families. Second, the stability of the results is examined by estimating the same model for two samples of children. Previous studies have reported results for a single sample. Differences in results across studies have raised questions concerning the stability of relationships between particular home resources and children's achievement. In this study, the stability issue is addressed directly. The central finding of our research is that the skills of the mother, measured by the extent of her formal schooling, are a critical resource in determining children's achievement. Our results demonstrate that these skills affect children through the mechanism of child care, and not simply through genetically transmitted endowments. Another key result is that goods inputs in the home do not appear to have consistent effects on children's learning. Thus, our findings support the results of other recent research that has emphasized the importance of human resources (such as mothers and teachers) rather than material inputs in determining children's achievement. These and other findings are discussed in detail later in the paper. The next section of the paper lists the hypotheses examined in this study. Section III describes the analytical framework within which these hypotheses were tested. Section IV describes the data. Section V describes the problem of interpreting correlations between attributes of the home environment and children's achievement. Section VI presents the results, and section VII discusses their implications.

Starting from an initial (baseline) budget line, income-compensated price changes always resulted in substitution effects consistent with the Slutsky-Hicks theory. This behavior cannot be explained by a simple random-behavior model. Similar changes in relative prices that did not originate from the initial (baseline) budget line resulted in "undersubstitution effects": The composition of consumption changed in the expected direction, but the magnitude of change was not large enough to be consistent with the initial commodity bundle chosen. These undersubstitution effects are not explainable by shifting preference patterns or anchoring effects found in inconsistent choice sequences with human subjects.

Results are reported from experiments showing that both income-compensated and ordinary (uncompensated) demand curves for nonhuman consumers are negatively sloped. Essential commodities are determined to be gross complements, while nonessential goods are independent or gross substitutes. The experiments extend the concepts underlying value theory to nonhumans and provide a basis for intensive experimental investigations of additional aspects of the theory.

The term structure of interest rates is an important subject to economists, and has a long history of traditions. This paper re-examines many of these traditional hypotheses while employing recent advances in the theory of valuation and contingent claims. We show how the Expectations Hypothesis and the Preferred Habitat Theory must be reformulated if they are to obtain in a continuous-time, rational-expectations equilibrium. We also modify the linear adaptive interest rate forecasting models, which are common to the macroeconomic literature, so that they will be consistent in the same framework.

ABSTRACT The term structure of interest rates is an important subject to economists, and has a long history of traditions. This paper re‐examines many of these traditional hypotheses while employing recent advances in the theory of valuation and contingent claims. We show how the Expectations Hypothesis and the Preferred Habitat Theory must be reformulated if they are to obtain in a continuous‐time, rational‐expectations equilibrium. We also modify the linear adaptive interest rate forecasting models, which are common to the macroeconomic literature, so that they will be consistent in the same framework.

ABSTRACT In an effort to better understand the dynamic market price adjustment process, this paper develops a model which describes the impact of new information on a financial market. The primary emphasis is on the price change‐volume relationship in the presence of a margin requirement. We find that the margin requirement significantly affects the relation of price change to volume. Furthermore, this relationship is shown to be affected by the number of investors in the market, the degree of information dissemination, differences in interpretation of information and the implicit cost of the margin requirement.

Starting from an initial (baseline) budget line, income-compensated price changes always resulted in substitution effects consistent with the Slutsky-Hicks theory. This behavior cannot be explained by a simple random-behavior model. Similar changes in relative prices that did not originate from the initial (baseline) budget line resulted in "undersubstitution effects": The composition of consumption changed in the expected direction, but the magnitude of change was not large enough to be consistent with the initial commodity bundle chosen. These undersubstitution effects are not explainable by shifting preference patterns or anchoring effects found in inconsistent choice sequences with human subjects.