Professors Alberts and Archer provide a valuable addition to our understanding of capital markets and how resources are allocated to firms of different asset sizes. Their hypothesis is that the cost of equity capital to smaller firms is higher than it is to larger industrial firms. They test their hypothesis by analyzing the variability of returns of 658 industrial firms and attempt to determine whether variability of return is inversely related to asset size. The authors assume that for all firms Ke must equal the sum of the risk-free rate of interest and a risk premium, when risk is defined by four different measures. Two measures of risk use ex post rates of return on book value and two measures of risk employ ex post rates of return on market value. In the first two cases, risk is defined as variability of the firm alone and, in the second two cases, risk is defined as the firm's variability incorporated with the variability of a market portfolio of securities.

I. The behavior of the labor-managed enterprise, 377. — II. The capitalist twin, 381. — III. The separation of ownership and control, 385. — IV. Self-financing and investment incentives, 390. — V. Conclusions, 391.

John B. Shoven, John Whalley; General Equilibrium with Taxes: A Computational Procedure and an Existence Proof12, The Review of Economic Studies, Volume 40, Iss

The article presents the author's views on the concepts of information value, in reference to an article written by Theodore J. Mock for the October 1971 issue of the periodical "The Accounting Review." The author says that Mock attempted to extend the theoretical work of information economics from a decision value focus into model and feedback information value. The author adds that Mock's definitions of information value add nothing new to the theoretical work of information economics. Furthermore, the measure of information value that has been previously developed in information economics subsumes the measures of Mock.

The article focuses on the use of computer as a teaching tool in accounting. Using the computer as a problem-solving, teaching tool benefits the process of learning in a variety of ways. The successful utilization of analytical techniques comes only when one understands the synthesis of the technique. Using the computer as a teaching tool has the potential for reducing computational burdens involved in analysis and thereby increasing the range of approaches that may be made to a problem. As a result, the student is able to spend more time on substantial issues and less on the detail work involved in many cases. It is then possible for a better understanding of the analytical and theoretical aspects of the problem. Essentially, the computer in its role as a teacher creates and controls an environment in which two kinds of learning may occur. At an early level in their college program, accounting students should complete coursework in basic computer programming. There should be coverage of the capabilities and limitations of electronic data processing systems.

Mildred B. Levy, Walter J. Wadycki, The Influence of Family and Friends on Geographic Labor Mobility: An International Comparison, The Review of Economics and Statistics, Vol. 55, No. 2 (May, 1973), pp. 198-203