[Production correspondences are defined and their properties explored. Properties of the distance function of a production structure are studied and are related to properties of the correspondence. Homotheticity is generalized to allow discontinuities in returns to scale and to take cognizance of several outputs. The factorization of the distance function into the product of two functions, one depending only on output and the other only on input, is demonstrated. The cost function is then shown to give rise to a production structure. A Shephard-type duality theorem is proven which implies, among other things, that the cost function and the distance function are dually related; that is, given one, a minimization proglem yields the other. The duality theorem is then used to deduce necessary and sufficient conditions, in terms of the cost function, for a production correspondence to be homothetic. A few simple applications of the duality theorem are given which relate properties of the cost function to geometric properties of the correspondence.]

Although the validity of quoted prices is an important issue and must not be slighted, it is suggested here that there are also other important problems in the steel industry which need to be considered. These problems relate to the various ways the industry can respond to changes in external conditions which are made possible by very close relationships among the large number of products it sells. The purpose of the present article is to indicate the importance of these responses for steel price change analysis and then to develop and test a new kind of price change index which attempts to measure these responses. While the orientation of the present article is perhaps somewhat unfamiliar, it is not new. For example, some of the following can be traced to a suggestive

The purpose of this paper is to explore within the context of several simple macroeconomic models the magnitude and significance of the structural changes that have taken place since the 1930's. The method that is used to examine the structural-change hypothesis is first to estimate separately for 1921-41 and 1946-66 the parameters of a macroeconomic model of income determination. The parameter estimates are then compared to see if there are any significant differences between the two periods. Finally, the dynamic properties of the systems for each of the subperiods are derived and compared. The presumption is that the parameter estimates and the implied system behavior will reflect the structural changes that have been effected since the great depression. (Author)

Considerable attention has been given in recent years to studies of the cost of capital and investor preferences for dividends, but empirical analysis of the various theoretical propositions has been complicated by numerous difficulties associated with estimating the parameters in question. In many of the empirical studies, ordinary least squares has been the statistical method applied because, under certain assumptions, ordinary least squares produces unbiased estimates with a minimum of variance. However, the validity of one of the assumptions, namely, that all independent variables contain no measurement error, has been questioned by numerous writers. More specifically, it has been argued that investors tend to ignore temporary or random disturbances in current reported earnings. Thus, values of current earnings that are actually observed for the statistical study may be different from those values which ideally would be observed; i.e., they may contain measurement error, the size of which is reflected by the difference between the current reported earnings and the values on which investors presumably base their decisions. For example, in such least squares regressions as price on dividends and retained earnings, the impact of the measurement error is considered to fall mainly on the retained earnings, since dividends are thought to be relatively stable.

This now classic volume aims at a systematic presentation of the statistical methods used for the analysis of economic data. The properties of the various procedures are studied within the framework of theoretical stochastic models. Their relevance for inference on the economic phenomena is discussed at length. This third edition has been updated in many respects. Chapter 8 (Regression in Various Contexts) has been rewritten and now provides a full discussion of estimation in the linear models with a partially unknown covariance matrix, which introduces a systematic treatment of heteroscedasticity, random coefficients and composite errors. A new chapter has been added on simultaneous equation models that are non-linear with respect to the endogenous variables. The reader will also find new sections on shrunken estimators, on the choice of a model, on specification and estimation for distributed lag equations.

Reviews the book "Financial Accounting Theory II: Issues and Controversies," edited by Thomas F. Keller and Stephen A. Zeff.

In the article, the author presents an analysis of the paper by John P. Fertakis, which attempts to draw conclusions with respect to accounting on the basis of unrelated or only indirectly related studies in the behavioral sciences. According to the author, his paper merely contains several examples of what may become even more prevalent in accounting. Accounting research frequently has its tentacles extended into the research efforts of scientists in the fields of psychology, sociology, economics, statistics, operations research, management science, etc. In so doing, accountants are looking to others for answers in order to avoid the dirty and painstakingly slow, expensive, and methodical means by which empirical evidence can be conceived and nurtured in their own studies. But this outside empirical evidence often flounders like a fish out of water when plucked from the environment in which it was generated. In addition, accountants must heed the cautions of scientists who generated and/or analyzed the cited empirical evidence. In supplying more information in annual reports, accounts are thereby making it possible for users to make finer distinctions between more companies. Professor Fertakis should note that his suggested "seven items" for a standard report are not one-dimensional at all.

Reviews the book "DR Scott Memorial Lectures," edited by Orace Johnson.

The staff of the Air Force Accounting and Finance School decided to explore the use of programmed instruction in teaching certain basic accounting procedures to their young trainees. This school was interested in investigating programmed instruction in terms of its effectiveness and as a possible means of reducing the required training time while maintaining the desired quality of learning. The purpose of this article is to describe the study designed to evaluate the programmed materials developed. While this course was more technical in nature than the modern college accounting course, still as a rather well defined controlled experiment, the experiment should also be of interest to college instructors. This study was conducted at a Department of Air Force technical training school, which has the responsibility of training personnel in the area of governmental accounting procedures. A programmed textbook was developed specifically for the experimental unit of instruction and consisted of two volumes and an Answer Panel. It was written only after the objectives of the unit had been formulated in student behavioral terms and the criterion test developed.

Lowell R. Bassett, Thomas E. Borcherding; The Relationship Between Firm Size and Factor Price, The Quarterly Journal of Economics, Volume 84, Issue 3, 1 Au