I. Introduction, 503. — II. The model, 505. — III. Decentralized equilibrium with effluent charges, 512. — IV. Two classical welfare theorems for an economy containing pollution, 516. — V. Concluding comments, 522.

The various conditions for non-intransitivity of majority rule formulated over the past decade have been concerned with choices over arbitrary, usually finite, sets of discrete alternatives. In many economic and other social choice problems, however, the possible choices constitute a point set in some appropriately defined multi-dimensional commodity or policy space. It is shown that in problems of this kind, when voter preferences can be represented by quasi-concave, differentiable utility functions, the various equilibrium conditions for majority rule are incompatible with even a very modest degree of heterogeneity of tastes, and for most purposes are probably not significantly less restrictive than the extreme condition of complete unanimity of individual preferences.

R ECENT attempts to measure changes in the quality of labor inputs in production have been based either on changes in years of schooling and other quality determining factors (Denison (1967) and Jorgenson and Griliches (1967)) or on changes in occupational mix (Griliches (1967) and Raimon and Stoikov (1967)).' Both measures raise serious problems. The first, because of lack of data, has not been able to adjust for differences in ability, on-the-job training or a number of other quality determining factors so that they do not even purport to have exhausted all significant quality differences.2 On the other hand, studies using occupational data have been based essentially on Bureau of Census major occupational groups i.e., eleven groups -and as the authors themselves were aware, these are uncomfortably broad. The purpose of this paper is to discuss still another (albeit related) approach to measuring changes in the quality of labor in production and to present the results for manufacturing industries. The approach is to first develop a wage rate index which measures changes in prices of a homogeneous bundle of labor services over time. The wage rate index is then used to deflate a time series of average hourly earnings (i.e., the cost of a changing bundle of labor services per man-hour) in order to obtain the desired index of quality per manhour. This index, in effect, measures changes in labor quality by changes in occupational mix -i.e., increases in quality per man-hour are measured by shifts from lower to higher paid occupations. The major difference between the approach used here and that in the previously cited studies is that my results are based on very detailed occupational data by sex and industry. Because of limited coverage, the indexes of quality per man-hour are for production (blue collar) workers in 25 selected manufacturing industries. On the basis of these series and some additional assumptions, I also attempt to expand the results to all employees in manufacturing in order to estimate the contribution of changes in labor quality to the growth in output and output per man-hour in this sector. In particular, changes in quality per manhour are divided between those resulting from shifts among production and nonproduction (white collar) workers and those resulting from changes in quality per man-hour within these two groups.

The objective of this paper is to carry out tests of the general hypothesis, most recently urged by Scherer [14, pp. 100–102] and Weston and Brigham [17, p. 689], that the cost-of-equity capital of small industrial corporations is greater than that of large industrial corporations. The paper denotes this cost as ke and defines it as the expected rate of return on the stock of a company when the current price of the stock is in equilibrium. A common designation of ke of course is the equity capitalization rate. It will be noted that this definition of the cost-of-equity capital abstracts from the flotation costs that are usually incurred when companies sell new stock. Archer and Faerber [2] have already shown that these costs are inversely related to the size of companies.

I. Introduction, 112. — II. Feasibility and efficiency, 112. — III. Group efficiency, 114. — IV. Unequal production units, 115. — V. Efficiency and optimality, 116. — VI. Efficiency over time, 117. — VII. Some extensions, 118. — Appendix, 119.

Journal Article Exact Maximum Likelihood Estimation of a Regression Equation with a First-Order Moving-Average Error Get access M. H. Pesaran M. H. Pesaran University of Cambridge Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 4, October 1973, Pages 529–535, https://doi.org/10.2307/2296586 Published: 01 October 1973

The article comments on the use of fourteenth-century financial statements for teaching accounting. Historical source materials have long been recognized and appreciated as a learning tool in the social sciences. They help to explain the development of concepts, the reasons for their development, and alternative solutions to a variety of problems. Furthermore, the traditional emphasis on skill training in American accounting education left little room for and did not encourage experimentation with historical materials for educational purposes. The term "reserve" itself, is used rather loosely as an expense on the Profit and Loss Statement and as a liability on the Balance Sheet, leading to the conclusion that it means no more than an estimated amount; it is not used here as a precise technical term for an account with a specific function within a double entry framework. Although the pool of ready-to-use source materials is still somewhat restricted, there are books available containing anthologies of limited scope from which materials can be drawn for classroom use. Quite obviously there is some work to be done; but there is also an opportunity for extending the scope and for enriching the quality of accounting education.

Comments on the research paper entitled "The Need for and Scope of the Audit of Management: A Survey of Attitudes," which was published in the April 1972 issue of the journal "The Accounting Review." Opinion on the work of independent certified public accountants who are engaged by clients to perform audit work; Expansion of the work of the auditor in government operations beyond fiscal and accounting matters; Information on the importance of reliable financial records and reports on the handling of public funds in assuring compliance with applicable laws and regulations.