They indicate that purchases of durable goods (DUR) are the third most volatile component behind inventory investment (INV I) and federal government expenditures (F GOV). The correlation coefficients between GNP and its components listed in the second row of table 1 show that durable goods purchases have the third hiighest covariance with GNP after inventory investment and nonresidential investment (NRI). Theoretically, these purchases represent either changes in the size of the household portfolio through changes in the flow of savings, or a reallocation of accumulated wealth among assets in response to changes in rates of return. Empirically, some effort has been given to examining the separate influences of rates of return and income. Hamburger (1967) found that interest rates, the price of durable goods relative to other prices faced by the consumer, and disposable personal income all have a significant impact on purchases of durable goods. portance of these variables as sources of fluctuation in purchases. Motley (1970) included a user cost of real assets variable in addition to the rate on savings deposits and expected income, and found in sharp contrast to Hamburger that none of them had a significant influence on the demand for the sum of durables and housing. The analysis of fluctuations in durable good purchases presented here differs from its prede-

George C. Philippatos, David N. Nawrocki, The Information Inaccuracy of Stock Market Forecasts: Some New Evidence of Dependence on the New York Stock Exchange, The Journal of Financial and Quantitative Analysis, Vol. 8, No. 3 (Jun., 1973), pp. 445-458

Introduction, 567. — I. Market structure of land leasing, 569. — II. Oligopoly land market, 573.

In this paper, a model is developed for deriving the implied fixed cost of a bond flotation. Using a sample of electric utility companies over the 1961–1970 period, implied fixed costs are computed for 318 bond issues. These fixed costs then are evaluated in an effort to cast light on whether companies behave optimally with respect to the size and frequency of bond issues. Regression results are consistent with the adjustment of debt issuing behavior in keeping with: (1) expectations about the future course of interest rates; (2) variable costs increasing at a decreasing rate with the size of individual issue; and (3) differences in the cost of carrying excess liquidity which arise from differences in quality rating. An estimate of the average fixed cost of issuing bonds is evaluated as is the debt issuing behavior of individual companies. Over all, the model and its testing give considerable insight into the implied fixed costs of issuing debt.

Abstract This article focuses on the attitude of business students towards social problems. This paper reports comparisons which were made of entering freshmen who have elected a field of business at Virginia Tech with the national average for all curriculums. Of the business students 97.9% believed that the Federal government should do more about pollution, but this percentage was below the national average. Overall, the data indicated that entering business students seem to be strongly concerned about our social and economic problems. Accounting students were found to have positive attitudes toward parents, people in general, and authority, whereas creative writing students displayed negative attitudes. On the basis of this and other research, it seems logical to infer that accounting students are deeply concerned with social and economic problems. The challenge for accounting educators is to promote student interest in social and economic affairs and to assist the student in implementing his skills in a constructive manner toward a solution to these problems.

Abstract The article discusses the controversy over accounting for goodwill. Such issue has been existing for many years, and the recurrence of the problem shows that goodwill is indicative of a more fundamental problem in financial accounting theory. In an attempt to explore the goodwill phenomenon, financial accounting was analyzed from a systems-theoretic perspective. The article explains that accounting entities can be and are usefully conceived as open systems. The concept of open systems indicates the desirability of financial accounting theory being brought more in line with the emergence of management information systems.

I. Introduction, 138. — II. A general equilibrium model of the growing low-income economy, 139. — III. The sources of growth paradox, 141. — IV. An analysis of the sources of growth paradox, 144. — V. Conclusion, 147.