Journal Article Dr. Hansen on the Inflationary Gap: Further Comment Get access J. J. Paunio J. J. Paunio Helsinki Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 22, Issue 2, 1954, Pages 151–152, https://doi.org/10.2307/2296289 Published: 01 January 1954

J. Aitchison, J. A. C. Brown; A Synthesis of Engel Curve Theory1, The Review of Economic Studies, Volume 22, Issue 1, 1 January 1954, Pages 35–46, https://

Journal Article The Problem of Oligopoly: A Comment Get access J. H. Davies J. H. Davies Sheffield Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 22, Issue 3, 1954, Pages 228–229, https://doi.org/10.2307/2295881 Published: 01 January 1954

It is certainly true to say that the present situation is unfortunate -the situation with respect to the use of mathematics in economic science -and improvement may be obtained as a consequence of a clearer understanding of the functions of mathematics. I very much welcome the attempt made by Dr. Novick, although I am inclined to put things somewhat differently. To what extent there is between us only a difference in wording and to what extent one of substance, I do not quite see. Therefore let me give my own view in my own words. The functions of mathematical treatment in economic research may perhaps best be discussed on the basis of a breakdown into various elements of a complete piece of econometric research. Not all pieces of important economic analysis are by necessity also complete: sometimes certain elements are absent, as a consequence of the special features of the problem handled. I do not want to say therefore that every contribution to economic science should show all the elements to be enumerated; but the function of mathematics becomes clearer if we consider this complete set of elements.

D. C. Hague, J. H. Dunning; Costs in Alternative Locations: The Radio Industry, The Review of Economic Studies, Volume 22, Issue 3, 1 January 1954, Pages 2

IN A TYPICAL Leontief model, there is a unique method of production for each product. Hence, if a given bill of final goods is specified, the output of each industry is uniquely determined, there being no possibilities of substitution. Professor Chenery, in a contribution to a study of the industrial structure of the Italian economy ([1], Chapter II, Section E), has considered a model more general in that each commodity may be either produced domestically by a unique process or imported, which involves a drain on foreign exchange. Some, at least, of the domestic industries operate under capacity limitations. There are then alternative ways of producing a given bill of goods; choice among them is to be made on the basis of minimizing the cost of imports in foreign currency. One would expect that the choice of production and import program would depend upon the relative prices of imports. The procedure actually used by Chenery is, however, independent of these prices. The purpose of the present note is to demonstrate that his procedure is correct under a wide variety of circumstances, i.e., that in spite of the presence of a substitution possibility, the optimal choice is independent of relative prices.