In this note we introduce a weak optimality condition for tests, called complete consistency. We argue that complete consistency is a more appropriate weak optimality condition for tests than is test consistency. Complete consistency is a testing analogue of estimator consistency. It is shown that a sequence of estimators is consistent, if and only if certain tests based on the estimators (such as Wald or likelihood ratio tests) are completely consistent, for all simple null hypotheses. The above notwithstanding, the relationship between consistent and completely consistent tests shows that test consistency is a relevant concept. Consistent tests can be used to show the existence of, and to construct, completely consistent tests. Further, completely consistent tests cannot be generated from nested families of inconsistent tests.

This paper analyzes the implications for turnover of costly job-specific training. The presence of such costs in a search model implies that turnover decisions reduce the value of potential trades that are available to other market participants. There is too much turnover because of this external effect, and, therefore, too much retraining. When the investment in job training is endogenous, inefficient turnover again occurs, and the investment in specific skills is inefficiently high. The interactions between skill acquisition and turnover imply that it is essentially impossible for a brokerage institution to achieve efficiency.

Journal Article Monetary Policy in an Inside-Money, Open Economy: Reply Get access Donald J. Mathieson Donald J. Mathieson International Monetary Fund Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 96, Issue 2, May 1981, Pages 357–361, https://doi.org/10.2307/1882396 Published: 01 May 1981

Journal Article Choice of Technology in Low-Wage Countries: A Nonneoclassical Approach Get access Donald J. Lecraw Donald J. Lecraw University of Western Ontario Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 93, Issue 4, November 1979, Pages 631–654, https://doi.org/10.2307/1884473 Published: 01 November 1979

I. Introduction, 551. — II. The autocorrelation of earnings and the variance of human capital, 553. — III. Applications of the variance of present values, 559. — IV. Conclusions, 564.

Journal Article Intergenerational Wealth Transfers and the Educational Decisions of Male Youth: The Mother's Home Time Hypothesis Get access Donald O. Parsons Donald O. Parsons Ohio State University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 92, Issue 3, August 1978, Pages 521–524, https://doi.org/10.2307/1883158 Published: 01 August 1978

I. A simple schooling model, 605. — II. Estimation, 606. — III. An interpretation of actual and optimal schooling behavior, 615.

Tobin's banking system model, 83. — Opening the Tobin model, 86. — Foreign sector, 86. — Stationary-state, portfolio balance, 87. — Banking sector, 89. — High-powered money, 89. — Aggregate demand and supply, 90. — Government sector, 91. — Monetary policy, 93. — Fixed exchange rate: increase in required reserve ratio, 94. — Floating exchange rate, 97. — Conclusions, 99. — Appendix I: notation, 100. — Appendix II, 100.