Journal Article The Closed Linear Model of Production: A Note Get access D. Glycopantis D. Glycopantis The City University, London Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 2, April 1970, Pages 295–297, https://doi.org/10.2307/2296422 Published: 01 April 1970 Article history Received: 01 August 1968 Accepted: 01 March 1969 Published: 01 April 1970

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where S2 is the usual unbiased estimator of (X2. This procedure in effect defines a new composite estimator which is a probabilistic mixture of bi and b1* and which has corresponding performance characteristics: its MSE is a weighted average (for given parameter values) of MSE bi and MSE bl*, the weights being given by the probabilities that inequality (13) will or will not be realized. We do not wish to suggest that time and effort be devoted to consideration of principal component estimators in every regression study. Benefits in terms of MSE reduction will often be nonexistent or outweighed by the additional computational costs. But in cases such that (i) data augmentation is impossible or very costly, (ii) multicollinearity is severe, and (iii) there exists a well-defined estimation objective, the principal component procedure appears to offer one route for improving upon conventional estimation techniques. FIGURE 1. BREAK-EVEN CORRELATION VALUES r 9

T HIS paper presents an econometric analysis of the behavior of wages and prices in the American steel industry and the experience with steel imports during the 1950's and 1960's. The results presented are a portion of a larger, and as yet unfinished, effort to explain profit in the steel industry by estimating an equation for each economically meaningful component of the industry's income statement and then combining the equations to form a complete system. Modern empirical investigation of the determinants of wages, prices, and imports has developed in two distinct contexts. First, in response to widespread public concern over rising wages and prices during the 1950's, economists derived and tested a series of new formal models (generally embodied in a single central regression equation) to describe the processes at work. As time has passed more models have been proposed, early formulations have been elaborated and extended, and more data have become available for testing. In general, however, these models have stayed at the economywide level, and little has been done to disaggregate them by industry classification. Second, the wage-price subsections of large macro-econometric models have attempted to provide a complete explanation of the inflationary process, but as with the single equation studies, there has been little analysis of the mechanism in any individual sector. This paper draws upon the theories and models which have been developed for economy-wide studies, modifies them where necessary, and applies them to the steel industry. The next three sections present the formulation and estimation of equations for the steel wage rate, the wholesale price index for steel, and the ratio of imports to domestic shipments. Then, with the aid of the estimated relationships, some short-run projections are made; finally, the analysis is summarized.

T HIS paper is concerned with the effect of schooling and learning on the level of workers' earnings. Individual data obtained from the 1/1000 sample of the 1960 United States Census for the North Central region 1 and information on scholastic achievement obtained from Equality of Educational Opportunity,2 popularly known as the Coleman Report, are used to measure the effect of educational achievement and various other personal characteristics on the earnings of those with twelve or fewer years of schooling. The first section discusses the data and the specification of earnings functions. In the next section it is shown that, for whites, a significant relationship exists between an individual's scholastic achievement and his earnings and that achievement explains more of the variance in earnings than does the number of years in school. The third section presents findings that the effect of education on earnings is less for blacks than for whites and that the black's lower average achievement does not account for the difference in the mean earnings of blacks and whites. The fourth section describes a recursive model of income determination.

M. Kurz, D. A. Starrett; On the Efficiency of Competitive Programmes in an Infinite-Horizon Model1, The Review of Economic Studies, Volume 37, Issue 4, 1 O

Lyn D. Pankoff, Robert L. Virgil, Some Preliminary Findings from a Laboratory Experiment on the Usefulness of Financial Accounting Information to Security Analysts, Journal of Accounting Research, Vol. 8, Empirical Research in Accounting: Selected Studies 1970 (1970), pp. 1-48