This is a review article based on W. O. Henderson's two-volume Life of Friedrich Engels. After a brief biographical summary, Engels's contributions to political economy are examined, and it is suggested that these are much more important than has so far been recognized (e.g., by Schumpeter). In particular, Engels's paper "Outlines of a Critique of Political Economy" announced several of the basic and least invalid themes of Marxist political economy. Later Engels, when criticizing Utopian socialism, contributed a very remarkable account of the essential functions of the competitive price mechanism.

textabstractMonte Carlo (MC) is used to draw parameter values from a distribution defined on the structural parameter space of an equation system. Making use of the prior density, the likelihood, and Bayes' Theorem it is possible to estimate posterior moments of both structural and reduced form parameters. The MC method allows a rather liberal choice of prior distributions. The number of elementary operations to be preformed need not be an explosive function of the number of parameters involved. The method overcomes some existing difficulties of applying Bayesian methods to medium size models. The method is applied to a small scale macro model. The prior information used stems from considerations regarding short and long run behavior of the model and form extraneous observations on empirical long term ratios of economic variables. Likelihood contours for several parameter combinations are plotted, and some marginal posterior densities are assessed by MC.

THE hypothesis that firms with market power pay higher wages than competitive industries has implications that are important to many areas of policy. If firms with market power do pay higher wages, the excessive portion of those wages would be a rather large addition to the social costs of monopoly. In addition, wages that are inconsistent with labor market characteristics and not uniformly sensitive to business cycles will hamper the implementation of macroeconomic stabilization programs. Previous studies in this area have usually tested the market power hypothesis by determining the relationship between industry concentration and industry wages.' In addition, studies focusing upon other aspects of interindustry wages, such as the effect of unions2 and plant size3 have included concentration as an explanatory variable in their models. Results of these studies have differed with respect to their findings on the importance of concentration. Some studies found concentration to be important in the wage determination process while others did not. The research reported in this article indicates that the concentrationwage relationship changes significantly over the business cycle making cross sectional studies sensitive to the year used for the analysis. This finding is consistent with the results of models developed to describe the wage determination process over time. The method of analysis used here focuses upon the concentration-wage relationship at two points in the business cycle. A cross sectional test of a model of interindustry wage determinants in manufacturing is presented for the years 1958 and 1967. The results of these tests indicate that six independent variables can explain over 72% of the variation in wages found in each of the two test years, with each of the six coefficients statistically significant in both years. However, the impact of the independent variables change considerably over the business cycle. Of particular interest are findings that support the hypotheses (1) that concentration's effect upon wages appears to change over the business cycle, thus providing support for the spillover hypothesis and (2) that the wage-concentration relationship is not linear.

R ECENT theoretical and empirical analysis of unemployment has emphasized its dynamic character: flows into and out of unemployment are very substantial in relation to the stock of unemployed individuals,' and groups with high unemployment rates tend to be those whose members experience short but frequent spells of joblessness (Hall, 1970). This view of unemployment has afforded important new insights into the question of why average unemployment rates differ so markedly across certain labor force groups, and has led to major shifts in the focus of labor market policy. For example, the discovery that the higher unemployment rates of blacks are due almost entirely to the higher frequency of jobless spells they experience (Perry, 1972) has shifted emphasis away from policies that stimulate demand toward policies that will help to reduce job turnover. Existing studies have focused almost exclusively on differences in the average values of the duration and frequency of spells of unemployment between certain labor market groups; none has examined systematically the variation in unemployment spell lengths and frequencies across individuals. This paper seeks to fill this gap by examining the relative contributions of unemployment frequency and unemployment duration to the distribution of total hours of unemployment across individuals within each of several important labor force groups. Dispersion in the distribution of unemployment across individuals results when either the length or frequency of unemployment spells is unevenly distributed across individuals. This dispersion is reinforced when the length and frequency of spells are positively correlated, i.e., when those individuals who have the greatest difficulty finding jobs (the last hired) tend to be the same individuals who experience the greatest difficulty keeping them (the first fired). The principal contribution of our study is that it enables the variations in individual unemployment experience to be linked explicitly to individual variations in the length and frequency of unemployment spells. Section II below outlines a probabilistic model of individual labor market transitions that serves as the basis for our empirical estimation procedures. In section III we then describe the data employed in our study (the National Longitudinal Survey) and present our estimates of the distributions of individual transition probabilities for each of four demographic groups. Section IV examines the effect of a business cycle downturn on the unemployment experienced by individuals in these groups.

James R. Markusen, David T. Scheffman; Ownership Concentration and Market Power in Urban Land Markets, The Review of Economic Studies, Volume 45, Issue 3, 1 Oct

Richard C. Burgess, Bruce T. O'Dell, An Empirical Examination of Index Efficiency: Implications for Index Funds, The Journal of Financial and Quantitative Analysis, Vol. 13, No. 1 (Mar., 1978), pp. 93-100

This paper adjusts rankings of leading accounting departments presented by Bazley and Nikolai in the July, 1975 THE ACCOUNTING REVIEW. Adjusted rankings reflect (a) differences in perceived quality of journals and (b) differences in sizes of accounting faculties. The conclusion is that, while differences in perceived journal quality have little effect on Bazley and Nikolai's rankings, adjustment for faculty size does.

The short-run relationship between employment and output has generated a wealth of literature since the early 1960's (Hultgren (1960, 1965), Kuh (1960, 1965a, 1965b), Neild (1963), Raines (1963), Wilson and Eckstein (1964), Brechling (1965), Ball and St Cyr (1966), Soligo (1966), Brechling and O'Brien (1967), Dhrymes (1967), Ireland and Smyth (1967, 1970), Masters (1967), Smyth and Ireland (1967), Fair (1969), Nadiri and Rosen (1969, 1973). A substantial part of this work has involved the construction and estimation of employment equations the composition of which is derived primarily from an (inverted) short-run production function. The choice of statistical surrogate for employment has strong implications for the structure of the estimating equations and yet, remarkably, relatively little attention has been paid to this aspect of the problem. In most of the studies employment has been approximated either by the number of men in employment or by man-hours. Both formulations assume implicitly that men and average hours are perfect substitutes for one another; that is they are functionally related to the same set of exogenous variables, adjust at an equal rate to their own lagged values and exhibit similar reactions over the cycle to each and every influence. Such assumptions, however, are bold and several writers have seen the need to provide a separate specification for equations depicting the demand for the number of workers and their rate of utilization (see Kuh (1956b), Brechling (1965), Fair (1969), Nadiri and Rosen (1969, 1973) from above and also Brechling (1974) and Ehrenberg (1971)). Three major reasons may be given which would warrant such a separation: (i) Hours may be viewed as comprising the principal short-run means of adjusting labour to output changes while men are adjusted to meet longer-term movements in output, capital stock, etc. (ii) Men and hours may themselves be interdependent (recursively) given the different time scales mentioned above. (iii) Certain exogenous influences may affect the demand for men in different (and possibly opposite) ways from their effect on hours. The main purpose of this paper is to present and test a simple theory which takes explicit account of the interdependence between the employee and utilization decisions. The functional form of our model is developed in Section 2 with particular variable constructions and results presented in Section 3. Where possible, it will be interesting to compare our results with those of Brechling (1965) since the early development of our model follows closely along lines suggested by Brechling and, like him, our data refer to British manufacturing industries. Brief conclusions appear in Section 4.

Albert A. Hirsch, Saul H. Hymans, Harold T. Shapiro, Econometric Review of Alternative Fiscal and Monetary Policies, 1971-75, The Review of Economics and Statistics, Vol. 60, No. 3 (Aug., 1978), pp. 334-345