Professions such as medicine and law, as well as accountancy, face the challenge of improving the preparation of students to meet their career responsibilities. To carry out their career responsibilities more effectively, some researchers suggest that students need to develop a stronger professional identity, a greater appreciation of their legal and ethical duties, and a deeper understanding of their profession's demands and risks. In short, the professional socialization process, or induction of students into their respective professions, is thought to be inadequate. This paper identifies results associated with an improved professional socialization process: students abandoning public stereotypes, learning professional behavior, and tentatively resolving potential professional conflicts. Researchers identify six factors that may be associated with fostering more successful socialization. Three of these reflect faculty orientations: a sound theory of practice, a collegial attitude, and a cosmopolitan outlook. Three other factors reflect a faculty's ability to structure students' school experience: clinical experience, rituals and ceremonies, and the collective student experience. Greater attention to these six elements may be associated with achieving more desirable and long-lived changes in students at professional schools.

[This paper considers the possibility of extending the Arrow-Pratt results on risk aversion to cases in which initial wealth is random. Specifically, we consider a situation in which an individual's wealth is the sum of two independent random variables extbackslashtilde\x\ and ỹ. We define the risk premium π( extbackslashtilde\x\, ỹ) which represents the reduction in mean wealth an individual is willing to accept to eliminate the random variable x̃ while retaining the random variable ỹ. It is shown that if u_1 is uniformly more (Arrow-Pratt) risk averse than u_2 and if either u_1 or u_2 exhibit nonincreasing (Arrow-Pratt) risk aversion, then extlesstex-math extgreater$ extbackslashpi _\2\( extbackslashtilde\x\, extbackslashtilde\y\)$ extless/tex-math extgreater is always smaller than extlesstex-math extgreater$ extbackslashpi _\1\( extbackslashtilde\x\, extbackslashtilde\y\)$ extless/tex-math extgreater. An example is given in which both u_1 and u_2 exhibit increasing risk aversion and in which this result fails.]

of economic time series similar to the observed high frequency series. A transformation that converts these series to serially uncorrelated stationary time series would therefore introduce the same conversion to the residuals. Although the discussion in this paper has been limited to the problem of distribution, a similar treatment can be given to the problem of interpolation and extrapolation by related series. As has been shown in the paper of Chow-Lin, the three problems can be treated simultaneously by properly defining the transformation matrix B.

This paper provides an appropriate framework to evaluate the impact of the universal reserve requirements called for by the new DIDMC Act of 1980. We derived the optimal reserve ratios for a dual banking system under the objective of controlling the monetary aggregates and the level of output. Then optimal reserve requirements were calculated from illustrative money market and macroeconomic parameters since the usual comparative statics were not useful. The results, generally, suggested optimal reserve ratios which were significantly higher than the old dual or the new universal reserve regimes for all targets. However, the calculation of values for the loss functions under various reserve regimes suggests that attainment of and may not be imperative, since the discrepancy between losses for optimal and various nonoptimal reserve schemes were not large. A major result of this paper, observed for both monetary and real targets, was that the differences in the instability of the targets for the old dual reserve ratios and the Fed's new universal reserve scheme were small. This result clearly suggests that although the DIDMC Act may solve the Federal Reserve's membership problem, it will not significantly enhance the Fed's effectiveness in controlling monetary or real sector aggregates.

This paper provides further evidence on the distributional impact of interest rate ceilings on the small saver. Cross‐section data from the 1977 Consumer Credit Survey was used to estimate the implicit losses imposed on different income classes by government regulations. Our findings generally support earlier studies which found the implicit burden to be regressive among income classes. However, the degree of regressivity showed a marked decrease since 1970. These results may be explained by portfolio adjustments of households and financial innovations in response to deposit rate ceilings and accelerating inflation during the 1970s.

Complete diversification is the rational investment strategy for a risk averse individual in a homogeneous securities market who considers only the first two moments of return. Observed behavior of market participants, however, demonstrates that the majority of individual investors hold imperfectly diversified portfolios. The purpose of the present study is to examine one potential cause for this behavior which does not rely on imperfection in the capital market. Specifically, we show that given the existence of, and investor preference for, positive skewness, a rational investor may hold an optimal limited number of homogeneous risk assets.