Journal Article Tentative Notes on a Two Sector Model with Induced Technical Progress Get access C. C. von Weizsäcker C. C. von Weizsäcker University of Heidelberg, Germany Alfred Weber Institut Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 33, Issue 3, July 1966, Pages 245–251, https://doi.org/10.2307/2974418 Published: 01 July 1966

This paper derives the simple analytic solution to the special but important inventory problem in which the optimal policy is to reorder whenever units are demanded. The demand distribution can be any compound Poisson; the resupply distribution is arbitrary. Both the backorder case and the lost sales case are solved by generalizing a queueing theorem due to Palm. The steady state probabilities for the number of units in resupply (or repair) completely describe the item's long term behavior, and are simply the normalized values of the compound Poisson demand distribution based on the mean of the resupply distribution but not on the distribution itself. Knowledge of these state probabilities enables us to compute several measures of item supply performance as a function of the spare stock, s. Traditional inventory analysis can then be applied to minimize total cost based on estimates of holding cost and supply performance cost. The appendices contain a description of the algorithm and the computer program for calculating stuttering Poisson state probabilities and the measures of effectiveness for the backorder case. Numerical illustrations are also provided.

Neil C. Churchill, Audit Recommendations and Management Auditing: A Case Study and Some Remarks, Journal of Accounting Research, Vol. 4, Empirical Research in Accounting: Selected Studies 1966 (1966), pp. 128-151

F LUCTUATIONS in economic activity depend not only on variation in investment but also on variation in saving. How flexible or inflexible saving will be depends partially on previous commitments to save. The concept of saving, has been defined ' by the Survey Research Center of the University of Michigan to include life insurance premium payments,2 payments into retirement or pension funds,3 and principal payments on mortgage debt.4 Non-contractual forms of saving may be called discretionary. All of the components included in the Survey Research Center's definition have common characteristics: (1) Each hinges on a previous contract limiting the possibility of spending on consumer goods. (2) The contractual commitment is of a long-term nature. Two factors would seem to make contractual saving relatively stable: (1) the habitual response to previous decisions, and (2) the economic loss suffered by prematurely discontinuing a long-term commitment to save. The primary purpose of this study is to search for the factors influencing the level of contractual saving. Tests of significance are applied by comparing the coefficients of the selected variables in multiple regressions with their respective standard errors. Our work is different and more comprehensive than the analysis of life insurance premiums by Professors Kreinin. Lansing. and Morgan.5 We are concerned with the aggregate amount of contractual saving rather than with only one of its components. Also, the population is divided into a low-income group and la high-income group with separate analyses for each. The analysis of contractual saving is becoming increasingly important since the trend of contractual saving as a per cent of total saving is upward. In 1949, contractual saving was almost as large as total saving since discretionary dissaving largely offset positive discretionary saving. In explaining aggregate contractual saving both for the high-income group and for the low-income group, our basic theory was clearly confirmed. Disposable income, marital status and the presence or absence of children, and educational level all proved to be significant.6 The power of their influence was in the order stated with disposable income dominant. Race did prove to be significant for the high-income group while age was significant within the lowincome group. Further details must wait.

The von Neumann-Morgenstern theory of games does not yield determinate solutions (corresponding to unique payoff vectors) for two-person variable-sum games and for n-person games. The present paper outlines a general theory of rational behavior in game situations which does yield determinate solutions for all classes of games. The theory is based on two classes of rationality postulates: those defining rational behavior as'such, and those defining rational expectations concerning the other players' behavior. It is argued that this new approach greatly increases the possibilities for the application of game theory in economics and the other social sciences.

The time-sharing computer system now being operated in Phoenix by the Computer Department offers any Company executive willing to spend a few days learning to use the system an entirely new capability to explore and prepare business forecasts. The system does the arithmetic and prints the results in the privacy of the user's office in a few minutes. The planner can explore a range of assumptions and estimates impossible to handle by manual methods and difficult and time-consuming by more traditional computer methods. With the system, the planner can state his basic data and assumptions, observe the results, and then modify any of the assumptions he chooses and get new results within a few minutes. By following this procedure several times it is possible to explore the effects of a variety of environmental assumptions, such as market and price structure for a new product, and to find out what budget of costs for the new product must be realized to yield acceptable business results. This procedure, which requires many days of the time of several individuals by manual methods, can be completed in most cases by one man in less than one day, including the initial programming. An example from a recent new business study is given.

Leverage, Valuation, Net income ratio, Capital gearing

Journal Article Note on a Marshallian Conjecture Get access Murray C. Kemp Murray C. Kemp University op New South Wales Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 80, Issue 3, August 1966, Pages 481–484, https://doi.org/10.2307/1880734 Published: 01 August 1966