Both DC (developed country) tariffs and LDC (developing country) export taxes are "escalated" to protect local processors of primary commodities. The paper develops an analytical model of north-south commodity trade which is used to estimate the effects of reciprocal elimination of these trade barriers for eight commodities. It is estimated that processing would increase by 9 percent in the LDCs and decline by less than 1 percent in the DCs. The LDC export revenue for the eight-commodity sample would increase by 11 percent, or just over $1 billion (based on 1973 trade flows), which is considerably more than the estimated effect of the Generalized System of Preferences.

It has been argued recently by Friedman that the whole term structure of interest rates rather than any single rate represents the relevant opportunity cost of holding money. The purpose of this paper is to present a way to incorporate the term structure in the demand-for-money function compactly with a few parameters and offer empirical evidence for the United States over the period 1960-76 supporting the validity of such an approach. Furthermore, we establish that this function appeared to be stable during a period (1972-74) when standard functions using only one interest rate display significant shifts in parameters.

This paper formulates and estimates a model of producer behavior for U.S. manufacturing 1947-71 that simultaneously identifies substitution elasticities, scale economies, and the rate and bias of technical change. A nonhomothetic, nonneutral generalized Box-Cox cost function is employed which takes on the generalized Leontief, generalized square-root quadratic, and translog cost functions as special or limiting cases. Total factor productivity is estimated parametrically rather than being computed as the residual of growth in outputs minus growth in inputs. We find substantial economies of scale and relatively little technological change.

For the last twenty years economists have debated the advantages of free and fixed exchange-rate regimes. Milton Friedman argues that if internal prices and wages were inflexible, it would be preferable to allow adjustment to occur through a depreciation of domestic currency. Svend Laursen and Lloyd Metzler, Egon Sohmen, and Murray Kemp argue in favor of free (floating) exchange rates by the familiar insulation properties of free rates. Jerome Stein classifies a conflict (compatible) economy as one in which a decline in output is accompanied by an excess demand (supply) of foreign exchange. When output falls for a compatible economy in a free (fixed) exchange-rate regime, the resultant appreciation of domestic currency (increase in the level of money balances) tends to reinforce (mitigate) the initial decrease in output. When output falls for a conflict economy in a free (fixed) exchangerate regime, the resultant depreciation of domestic currency (decrease in the level of money balances) tends to mitigate (reinforce) the initial decline in output. Stein then concludes that a free (fixed) exchange-rate regime is optimal for the conflict (compatible) economy. There are two major shortcomings of previous comparisons of different exchangerate regimes: the first is the lack of disequilibrium behavior. In this paper, I develop a disequilibrium model for the analysis.' It will be assumed that the money wage adjusts slowly and transactions can occur at labor market disequilibrium. Unemployment gein erated from this type of economic behavior is typically involuntary. The second shortcoming is that the results are limited to static short-run comparisons. Most of the previous analyses are based on the standard Keynesian variable income model with rigid wages and prices.2 Though wages and prices may be considered as fixed in the short run, they must adjust in the long run. In the literature, these long-run aspects have never been satisfactorily analyzed.3 Indeed, this leaves a good part of the problem out of the picture. In order to evaluate the overall efficiency of exchange-rate regimes, in addition to short-run comparisons, we should also consider the shapes (or speeds of adjustment) of long-run time paths of different exchangerate regimes. To overcome these setbacks, I construct a disequilibrium model that traces out the long-run time path of different exchange-rate regimes. Not only will the short-run comparative statics be considered, but also the long-run adjustments of those sticky prices. My analysis shows that Stein's classification can be extended to a long-run dynamic framework. For a conflict (compatible) economy, a free (fixed) exchange-rate regime is superior to a fixed (free) exchange-rate regime, even though the latter regime may have a faster speed of adjustment than the former. In Section I, the analytical framework of the model is developed. Section II analyzes the short-run level of unemployment for each exchange-rate regime; and Section III is an examination of the long-run time paths for

This paper presents the results of an empirical test of the value/events hypothesis first presented by Sorter. The paper places the value and events approaches to information generation in an overall information systems framework, by simultaneously examining the accounting approaches and the psychological type of the decision maker. The experimental results indicate that Sorter's events approach has considerable merit when coupled to the psychological type of the decision maker.

Eduardo S. Schwartz, Theories of Corporate Debt Policy: A Synthesis: Discussion, The Journal of Finance, Vol. 34, No. 2, Papers and Proceedings, Thirty-Seventh Annual Meeting, American Finance Association, Chicago, Illinois, August 29-31, 1978 (May, 1979), pp. 386-387

Reviews the book "Conceptual Framework for Financial Accounting and Reporting: Present and Future," edited by Joe J. Cramer and Charles A. Neyhart.