A constraint on a decision variable is normally thought to be binding only if it prevents that variable from taking on its unrestricted current equilibrium value. This paper establishes that this is not true when decisions are intertemporally related. In such a decision-making environment, imposing a price ceiling, for example, which is greater than the current equilibrium price can be binding in that it will alter current price. Likewise, the removal of a price ceiling which exceeds current price can result in a change in that price. Among other things, this result casts doubt on the widespread view that price ceilings on petroleum products are not binding because current prices are less than the ceilings.

A constraint on a decision variable is normally thought to be binding only if it prevents that variable from taking on its unrestricted current equilibrium value. This paper establishes that this is not true when decisions are intertemporally related. In such a decision-making environment, imposing a price ceiling, for example, which is greater than the current equilibrium price can be binding in that it will alter current price. Likewise, the removal of a price ceiling which exceeds current price can result in a change in that price. Among other things, this result casts doubt on the widespread view that price ceilings on petroleum products are not binding because current prices are less than the ceilings.

The earnings of foreign-born adult white men, as reported in the 1970 Census of Population, are analyzed through comparisons with the native born and among the foreign born by country of origin, years in the United States, and citizenship. Differences in the effects of schooling and postschool training are explored. Although immigrants initially earn less than the native born, their earnings rise more rapidly with U.S. labor market experience, and after 10 to 15 years their earnings equal, and then exceed, that of the native born. Earnings are unrelated to whether the foreign born are U.S. citizens.

Reviews the book "Auditing Principles," by Howard F. Stettler.

Reviews the book "Business Systems Techniques for the Systems Professional," by J.N. Chapple.

The article presents a comment by the authors on interindustry estimation of general price-level (GPL) impact on financial information. The January, 1973 issue of "The Accounting Review," contains an article by Russell Petersen that examined the impact of GPL adjustments on corporate financial statements. This comment is concerned with two specific shortcomings in the Petersen paper. First, it shows that his methodology for evaluating the impact of GPL restatements contains a fundamental error, which prevents an accurate assessment of the magnitude of "displacement" of certain of the financial parameters studied. The effect of this "comparability error" is sufficiently severe that it would alter some of Petersen's conclusions regarding the displacement effect of GPL restatements. Second, it questions the propriety of some of Petersen's statistical results and related discussion. It is believed that comparability error discussed in this article is but one example of a problem that is likely to arise with increasing frequency if disclosure of GPL restated information is required in the future.

Reviews the book "Computer Control and Audit," by William C. Mair, Donald R. Wood and Keagle W. Davis.