N recent years, we have seen a renewed interest in the problem of competition among banks. An increasing number of bank mergers has brought forth new legislation, such as the Bank Holding Company Act (1956) and the Bank Merger Act (1960), which directs regulatory agencies to preserve competition in banking. At the same time, it has become apparent that there is little or no empirical evidence on the relationship between bank performance and market structure. This paper aims chiefly at determining whether or not market structure or concentration has any effect on commercial bank performance. It is considered to be the groundwork from which it is hoped will spring more sophisticated techniques for handling the conceptual difficulties here encountered. It seems reasonable to begin an analysis of bank competition with what is undoubtedly the most delimited borrower market, the market for small business loans. There are fewer borrower alternatives for small business loans than for almost all other bank services. Business loans are also, of course, the most important component of commercial banks' loan portfolios. An investigation of this market provides an estimate of the upper bound of departures from competitive conditions. If no evidence of market power can be found in markets for business loans, other bank services for which there are more substitutes are not likely to display monopolistic practices. This paper attempts to test two hypotheses: (1) that, ceteris paribus, the level of business loan rates is higher in markets having relatively high concentration; and (2) that, ceteris paribus, business loan rates are less flexible in markets having relatively high concentration. In testing these hypotheses, an attempt is made to distinguish the effect of market structure from other regional differences, such as those of loan demand, bank costs, type of banking, etc. This paper seeks to probe the following questions: (1) What is a competitive market structure? (2) What is the quantitative effect of a given change in concentration, such as might result from a bank merger? (3) What determines the spatial market for bank loans? (4) Does branch banking have an effect on market performance different from that of unit banking? (5) How should market structure be measured? (6) Do banks which possess market power behave differently than competitive banks over the business cycle?

PpT HE purpose of this paper is to appraise the cyclical performance of fiscal policy over two recent cycles ranging from 1957-3 (peak) to 1960-2 (peak), and from 1960-2 to the first quarter of 1963. Also, an attempt is made to appraise the full employment adequacy of fiscal policy over this period. The exercise shows that grading, as always, is a delicate matter and that the results will differ depending on what formula is used. The effectiveness of fiscal policy is not easily measured. Obviously, it cannot be demonstrated by searching for a simple association between budget deficit and prosperity, nor can its ineffectiveness be proven by showing deficits to be associated with declines in GNP.1 What matters, first of all, are changes in budgetary position relative to changes in GNP. Moreover, a distinction must be drawn between the built-in effects of changes in GNP on changes in fiscal position, and the effects of discretionary changes in fiscal parameters on GNP. The former relation, which dominates the picture of the last decade, leads to the observed positive association between change in GNP and the level of budget surplus. This association in no way disproves the proposition that the built-in increase in deficit dampens the decline in GNP, just as the built-in increase in surplus dampens the rise. The effects of discretionary changes in fiscal parameters, in turn, should lead to a negative relation between changes in GNP and budget surplus, but this relationship involves lags and is not easily read from the data. Ultimately, the only satisfactory way of measuring the effects of budget policy on GNP during a past period is in terms of an econometric model which isolates fiscal factors. No such attempt will be made here. Rather, we shall compute various overall indices of fiscal performance, based on a more or less simplified multiplier model of fiscal policy effects, and address ourselves to certain conceptual problems which they pose. Our concern will be first with the contribution of fiscal policy to cylical stability, and then with measures of its full employment adequacy.

The article informs that one of the most difficult rules for students of accounting to comprehend is the pricing of inventory items at "cost or market whichever is the lower." Because the application of this rule lends itself to numerical calculation, much classroom time is often devoted to the topic, and many texts include numerous examples in attempting to illustrate the procedure. The confusion for the students stems largely from the complex definition of "market" given in Accounting Research Bulletin No. 43. The limitations on market contained in the definition are often referred to as "ceiling" and "floor" respectively. Per- haps this terminology has contributed to the misunderstanding, as one who has not carefully studied the above definition may feel uncomfortable about valuing inventory items at cost in cases where cost is less than "floor." Of course, the "floor" constraint pertains only to the determination of "market" and should not be applied to cost.

The article reports that the provisions of the Internal Revenue Code of 1954 with regard to depreciation is the permitted switch from a declining balance method to the straight line method. The calculations of the deductions in each year are made clear in accounting texts by specific examples. The problem of switching for group properties is treated in a article published in the periodical "The Accounting Review." An interesting result of the calculations is that for a useful life of up to 60 years it is never profitable to switch from double declining balance if salvage is as much as 15% of depreciable cost. Similarly, if the taxpayer starts on the 150% declining balance method for life up to 60 years he would never switch if salvage is 25% or more.

The article informs that the purpose of this article is to discuss the viewpoints expressed in, "A Critical Study of Accounting for Business Combinations," AICPA Study No. 5, by Arthur R. Wyatt. This review will concentrate on the recommendations rather than the basic text. The role adopted will be, in a sense, that of "devil's advocate." Using Wyatt's criteria, most business combinations would fall under his recommendation 1 and therefore be classified as purchases. Stress is put on the independence of the contracting or combining parties. Thus, if the groups about to combine deal at arm's length and independently, the proposed combination will be a purchase unless the constituents are roughly the same size or were "formerly related entities." While two parties to a combination might be viewed as independent before the combination, they do not want to retain their independence after the transaction.

Some of the business problems involve determining the problem and the alternatives, obtaining the information relevant to the problem's resolution, establishing where the required information can be obtained, selecting the appropriate methods of analysis or synthesis, considering the problem and the limitations of the information and preparing the results of the investigation for dissemination. The dynamic case approach seemed especially suited to studying these and related, subsidiary issues. This method was therefore employed on an experimental basis in the undergraduate, management cost accounting course at the University of California, Berkeley. In conclusion, the author had been greatly impressed with the pedagogical potentialities of the dynamic case in management accounting courses. Although no empirical evidence can be offered to substantiate a claim of greater efficiency in the learning process the author nevertheless believes it to be the case. And the use of the dynamic case possibly integrated with the business game in an expanded form to cover the other business areas, would seem to be an ideal means of integrating a student's knowledge prior to graduation.

The article focuses on the study of information systems for management control. During the past decade there have been many new approaches toward the study of the business entity. It is difficult to classify these approaches because each new approach usually overlaps previous approaches and is typically modified and strengthened by subsequent approaches. Recognizing the difficulty of any classification scheme, four developments are submitted as being the major movements in new approaches during the past decade. First, the psychological and sociological inquiries were combined to form the behavioral science approach toward studying the firm, with the human motivational aspects of each area given greatest emphasis. Second, advances were made in electronic data processing, and the electronic computer became a familiar expression throughout our society. Concurrent developments in electronic computers and communication equipment have provided the necessary means for rapid accumulation, calculation, processing, summarization, reporting, and transmission of data. Third, mathematical tools and techniques were applied to the study of business events. Fourth, scientific method has been applied to the study of the business entity, and applied models are frequently used in studying business situations.

The article focuses on the measurement and objectivity in accounting. The awakening interest in metrological aspects of accounting provides opportunities for critical examination of quite a few contemporary dogmas. Harold Bierman, accountant speaks of it as a step towards "a long awaited revolution in accounting." The first is the proposition that different descriptions or measurements may be used for different purposes. "Different measurements for different purposes" may mean measurements of different characteristics, either by use of the same scale of measurements or by the use of different scales. There is one set of measurements, which results in a representation of financial position, which is serviceable to all users, managers, investors and creditors alike. This is a set of measurements, in the scale of monetary units, of the contemporary realizable prices of all the seeable assets and of the obligations of a firm. This set of measurements is subject to errors of estimation, but these errors are measurable.