Journal Article Substitution and Supply Elasticities in Calculating the Effective Protective Rate: Comment Get access G. Donald Wood, Jr. G. Donald Wood, Jr. Georgetown University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 84, Issue 1, February 1970, Pages 154–157, https://doi.org/10.2307/1879409 Published: 01 February 1970

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

This paper incorporates land in a neoclassical model of economic growth. Saving and investment functions are modified due to the existence of land and these modifications yield some interesting results concerning the rate of capital accumulation: First, the maximum consumption path is unattainable; and second, the rate of capital accumulation depends negatively on both the equilibrium rate of growth and the relative share of land in national income. The latter result is a quantification of an effect claimed by many observers to characterize certain underdeveloped countries; namely, that saving motives are satisfied by land holdings (and the increase in real land prices) rather than by capital accumulation. Equilibrium in neoclassical growth models with two assets was first examined by James Tobin (1965). Most of the subsequent work on two asset models has continued to use Tobin's assumption that the asset other than capital is government debt and that its importance for equilibrium growth obtains solely from its role

With the rapid growth in various types of corporate combinations, many opportunities arise in which increased internal efficiency in the allocation of capital budgeting resources may be obtained. Although the resource-transfer methodology proposed in this paper is discussed within the context of a merger/acquisition environment, the operational analysis conveivably could be applied to multiproduct, multifirm, or multinational situations. This study examines an application in which a linear programming model can be used operationally as an analytical planning device (1) to obtain efficient capital budgets for the merged companies, and (2) to quantify the monetary value of potential gains in efficiency produced by a merger. Conceptually, the model assists management in searching for excess capacity in each company, efficiently combines scarce resources, selects an optimal project list for the merged company, and indicates what the composition of the new capital budget should be. In addition, a variable step function provides for multiplicative adjustments in common resource constraints. These adjustments might be positive (negative) if the combination results in a more than proportionate increase (decrease) in the availability of a scarce resource.

This article presents a discussion of two possible approaches to problems that derive from the apparent gap between business and academic environments. Many firms have taken the initiative in this area, and their Faculty Residency Programs are worthy of much praise. Some faculties have made useful efforts to associate executives with campus programs. In summary, there is little doubt that interested firms can and should obtain benefits from a Faculty Residency Program, either directly through using the faculty member in specialized projects, or indirectly, through the active utilization of his objective attitude in the decision making process. If the faculty member is to gain from this relationship, certain conditions must similarly be present. It is axiomatic that the academician be compatible in philosophy with his executive superior. Similarly important is the need for a well-defined project coupled with a real freedom to explore all avenues for attacking problems. Given these features, the Faculty Residency Program should afford substantial benefits to all involved parties.