Econometric studies have recently shown an apparent contradictory evidence regarding substitution possibilities between energy (E) and capital (K). An analytical and empirical interpretation of E-K complementarity consistent with basic microeconomics and with the manufacturing process engineering evidence of E-K substitutability is presented. The notion of utilized capital is developed, and some of the seemingly disparate econometric findings are reconciled. The analysis emphasizes to the authors that care must be taken in interpreting and properly comparing alternative elasticity measures. 42 references. (MCW)

Reviews the book "Statistical Auditing," by Donald M. Roberts.

This paper provides an empirically tractable version of a job-search model. The model is estimated using data on a sample of workers who were laid off when their plants closed. A generalization of the empirical model which allows for reservation wages to change over duration of unemployment is provided and estimated. Reservation wages are found to decline significantly with duration. Applications of the model and the estimates to explain diverse labor market phenomena are provided.