Journal Article The Pasinetti Paradox Revisited Get access B. J. Moore B. J. Moore Wesleyan University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 41, Issue 2, April 1974, Pages 297–299, https://doi.org/10.2307/2296719 Published: 01 April 1974

In this article, the quantitative form of capital market equilibrium is derived for a multi-period economy in which (a) there are many consumption goods whose future prices are uncertain, and (b) the investment opportunities available to consumers include both common stocks and default-free bills of many different maturities. Particular emphasis is placed on consumer reaction to uncertainty about shifts in commodity prices and the term structure of interest rates and on the way one should expect to observe this reaction reflected in portfolio choices and equilibrium stock prices.

Rashmi B. Thakkar, Comment: "Dynamics of Corporate Debt Management, Decision Rules, and Some Empirical Evidence", The Journal of Financial and Quantitative Analysis, Vol. 9, No. 6 (Dec., 1974), pp. 1065-1066

Dr. Severn and Professor Laurence present an analysis of the relationships between direct investment, research and development (R & D), and profitability. Early in the paper it is stated that the goal is to provide an explanation for the assumed high internal rate of return on investment abroad. Later it is restated that the paper studies “the profitability of the firm as a whole, rather than its reported profit on foreign assets alone.” Consequently, no evidence is presented of a high return on investment abroad. Indeed, the references to rates of return in the first few pages should be preceded by the word “expected” because these are ex ante returns, whereas the returns analyzed elsewhere in the paper are ex post returns.

Journal Article Social Choice and Individual Ranking I Get access B. Fine, B. Fine Birkbeck College, University of London Search for other works by this author on: Oxford Academic Google Scholar K. Fine K. Fine University of Edinburgh Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 41, Issue 3, July 1974, Pages 303–322, https://doi.org/10.2307/2296751 Published: 01 July 1974

RECENT studies by Teigen (1964), Smith (1967) and Modigliani, Rasche and Cooper (1970) suggest that money supply like money demand is sensitive to the interest rate. This has two implications: (a) the supply of money may not be an exogenous variable; and (b) the ordinary least squares estimates of the money demand function with the interest rate as an explanatory variable may suffer from simultaneous-equation bias. In this case-study of India we shall investigate some of these familiar issues in monetary economics as well as some monetary issues peculiar to developing economies. In developed countries, in general, discrepancies between physical and monetary flows of production, consumption and income are only marginal.' In developing countries sizable proportions of income and consumption originate through non-monetary transactions like self consumption of goods and services and barter trade. These proportions generally decline with economic development.2 The transaction demand for money therefore increases partly because of growth of national income and partly because of a rise in the degree of monetization.3 As such, the relevant concept of income in monetary analysis of developing countries is a monetized component of national income and not total national income. This factor has been generally ignored in empirical studiesprobably because of the lack of data on monetized income. In this study we have estimated the money demand function with monetized income data and have shown how it differs from that estimated with national income data.4 Another important characteristic of developing economies is the dual nature of organized and unorganized money market interest rates. In the organized market the speculative demand for money varies with interest rates on financial assets. Interest rates in the unorganized market are primarily related to risks and returns on real assets which having inelastic supply like land.5 The supply of money does not effect these interest rates significantly. Therefore, the Keynesian liquidity preference hypothesis may hold good in developing economies, if at all, in the organized market rather than the unorganized market. In section II we formulate the money supply and the money demand functions for the Indian economy within the framework of a HicksHansen-Modigliani-type model. The ordinary least squares (OLS) and the two-stage least squares (2-SLS) estimates of these functions with alternative definitions of money are analysed in section III. The impact of nonmonetized income and unorganized market interest rate on money demand are analysed in section IV. Section V is devoted to the analysis of forecasts and multipliers of 'money proper (currency plus demand deposits). The main conclusions are presented in section VI.

Journal Article A Note on Tariff Changes and World Welfare Get access Peter B. Kenen Peter B. Kenen Princeton University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 88, Issue 4, November 1974, Pages 692–697, https://doi.org/10.2307/1881833 Published: 01 November 1974

Introduction, 181. — I. A stochastic model of interfirm profitability differences, 182. — II. An example, 183. — III. Results of tests using a simple simulation model, 186. — IV. Summary and challenge, 191.

Some features of the theory 86. — Expected profits of the firm, 88. — Optimal accuracy of forecasts, 91. — Market equilibrium, 92. — Comparative statics, 92. — Conclusion, 96.

IN Ramsey (1972) the author discussed the conditions under which limiting approximations to own price demand curves can be obtained. The objective to be pursued in this paper is to test with budget data some of the specific hypotheses generated in the previous paper. The results to be presented are to be regarded only as initial efforts. Their main function is to indicate whether the hypothesized models can meet some fairly weak tests and to indicate the nature of some of the practical problems to be faced in testing such hypotheses.