LIFO, FIFO, Accounting Ratios, Risk

Journal Article On Measuring Economic Interrelatedness Get access J. M. Blin, J. M. Blin Northwestern University Search for other works by this author on: Oxford Academic Google Scholar Frederic Murphy Frederic Murphy Northwestern University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 41, Issue 3, July 1974, Pages 437–440, https://doi.org/10.2307/2296761 Published: 01 July 1974

Journal Article Some Comments on the Theory of Inert Areas and the Definition of X-Efficiency Get access K. J. Blois K. J. Blois University of Technology, Loughborough, England Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 88, Issue 4, November 1974, Pages 681–686, https://doi.org/10.2307/1881830 Published: 01 November 1974

I. Internal labor markets, 63. — II. Classifying internal labor markets, 65. — III. Structure, income, and experience, 74. — Appendix, 84.

Journal Article The Use of Unbounded Utility Functions in Expected-Utility Maximization: Response Get access Kenneth J. Arrow Kenneth J. Arrow Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 88, Issue 1, February 1974, Pages 136–138, https://doi.org/10.2307/1881800 Published: 01 February 1974

It has been suggested that information has the three following uses:1. Information can be employed to earn trading profits.2. Information can improve the operating decisions of a firm or group of firms and thereby increase the stock price.3. Information can reduce the risk of a firm or group of firms and thereby increase the stock price.

Traditional planning for working capital needs is typically conducted with a relatively short time horizon. In this process, management attempts to optimize the return on existing fixed assets. The period for capital investment planning is much longer, reflecting the irreversibility of these decisions. Current research in the two areas tends to dichotomize these decision processes. The implications seem to be that working capital policies only have impact in the short run. However, it is clear that cash flows for potential capital expenditures are based on assumptions relative to expected future demand and production to meet this demand—assumptions that are necessarily tied to working capital commitments in the long run. The overall planning for credit, inventory, and liquidity should, therefore, be carried out before, or simultaneously with, the capital investment decision. It is a planning requirement that becomes an integral part of the total asset planning system. The vast majority of existing working capital models or long-term capital planning models do not allow for the explicit existence of and the simultaneous interrelationships between these two important subsystems.

[A consistent theory of demand is possible without the transitivity axiom. Here it is shown that a class of nontransitive orderings can be represented by a continuous numerical function, in such a way that an individual's demand function may be found by solving a constrained maximum problem.]

A nonparametric framework for deriving the asymptotic MSE-optimal predictor for a multiplicative model is presented. The resulting predictor is compared to several known competitors in a limited Monte Carlo experiment. RECENT PAPERS BY Zellner [10] and Teekens and Koerts [7] address themselves to the problem of minimum-MSE prediction in a Cobb-Douglas-type multiplicative model under a lognormal distribution assumption for the disturbance term. Each derives the finite sample predictor (which turns out to be a function of the familiar least-squares predictor) for the model based on the assumption that ?2, the variance of the lognormally distributed disturbance, is known. An approximately optimal finite sample predictor is then suggested, where an estimate of w2 is utilized. Under certain conditions the approximately optimal predictor poses a computational burden. Under others, the predictor is easily computed, but no longer are small sample properties guaranteed. Our purpose in this note is to present a general framework for deriving the asymptotically optimal-MSE predictor for this multiplicative model without the imposition of a distributional assumption at the outset. Not only does this exercise provide us with a convenient vehicle for discussing further the aforementioned contributions, it also yields a viable distribution-free predictor that may