Journal Article Income, Region, Community-Size and Color Get access Henry M. Oliver, Jr. Henry M. Oliver, Jr. University of North Carolina Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 60, Issue 4, August 1946, Pages 588–599, https://doi.org/10.2307/1885149 Published: 01 August 1946

Journal Article The Relationship of Total Output to Man-Hour Output: Reply Get access Henry M. Oliver, Jr. Henry M. Oliver, Jr. Lt., USNR Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 59, Issue 4, August 1945, Pages 640–641, https://doi.org/10.2307/1883301 Published: 01 August 1945

Introduction: the problem, 239. — I. Data and methods used, 240.— The findings: for groups of industries, 244; for specific industries, 244; for different periods, 245. — Evidence from comparisons of a less formal sort, 246. — II. Calculations based upon indices of man-hour output not precise, 247. — III. Errors due to failure to distinguish between directly and indirectly productive labor, 249. — IV. Summary of conclusions, 252.

R EFERENCES to the velocity of circulation of money sometimes imply that movements of V are accurate guides to shifts in the aggregate-expenditure function. Among the varieties of economic analysis in which identity of velocity changes and aggregatedemand-schedule changes has been implicitly assumed are controversy concerning the validity of the lack-of-investment-opportunity theory of business downturns2 and speculation concerning the behavior of velocity in a Iooper-cent-reserve monetary system.3 As various economists have pointed out, however, changes in V are not necessarily accurate guides to changes in the aggregate-demand schedule. In a fractional-reserve system, movements of the investment and consumption functions may be expressed by expansion and contraction of M as well as by rises and falls in V. All that is required in the case of M's expansion is that excess reserves exist; and not even that is required when 11f falls. The implications that these conclusions have for statistical arguments concerning the lackof-investment-opportunity theory of recessions are obvious. Even if records were to show that