Journal Article Block Tariffs—a Comment Get access P. E. Watts P. E. Watts London Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 23, Issue 1, 1955, Pages 42–45, https://doi.org/10.2307/2296150 Published: 01 April 1955

Journal Article The Retarded Acceptance of the Marginal Utility Theory: Comment Get access John P. Henderson John P. Henderson University of Maryland Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 69, Issue 3, August 1955, Pages 465–473, https://doi.org/10.2307/1885853 Published: 01 August 1955

Journal Article Expected Price and the Cobweb Theorem Get access Arnold P. Collery Arnold P. Collery Amherst College Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 69, Issue 2, May 1955, Pages 315–317, https://doi.org/10.2307/1882157 Published: 01 May 1955

A LTHOUGH the symmetry of the relation2i ship between factor and consumer markets has been questioned in studies of wage differentials,' little investigation has been undertaken to determine the directness of that relationship and the degree of symmetry which may exist. The findings of this paper offer some evidence for the conclusion that the relationship is inverse, and that where earnings are low, the cost of living tends to be high. An intercity comparison of both earnings and the cost of living indicates that the magnitude of the earnings differential among the large cities of the United States is three to four times that of the cost-of-living differential. The data presented in Tables i and 2 show an inverse relationship between earnings and cost of living which suggests that the worker in substandard earnings areas is forced to reconcile his position in terms of a lower standard of living than that prevailing in more advantageous factor markets. Table i shows the differentials in the earnings of direct labor 2 in 35 cities throughout the United States. Table 2 shows the cost-of-living differentials in 33 cities. Differentials are based on the relationships of local earnings and living costs to those in New York City during the period of full employment in I95i. The cities included are grouped into five regions: New England, Middle Atlantic, South, Middle West, and Far West. Both earnings and cost-of-living information are not available in all cases, but 23 cities common to both sets of data provide direct local comparisons. Some discrepancies in the timing of the collection of raw statistics should not be considered as hindering the reliability of comparisons, since it is proper to assume that these differentials are constant, at least in the short run.3 Differentials in the earnings of direct labor are presented in Table i as percentages of average hourly earnings in New York City for October I95 I.4 Average earnings for the month were computed by dividing the monthly earnings reported by the total number of hours worked.5 These were then converted to a simple index and ranked in column two. The method of computation included payments for premium hours nd such incentive wage systems as happen to have been in effect during the month of October. While it is not the purpose of this paper to discuss in any detail the circumstances which are responsible for the position of particular communities in the rankings, it should be noted that intercity comparisons reflect heterogeneous influences which provide a useful basis for investigation of the diverse factors involved in arnings differentials. The rankings retain the

I. Introduction, 503. — II. Factors behind the recent mergers, 504. — III. Government regulation of bank mergers, 519. — IV. Effects of mergers upon banking markets, 524. — V. Conclusions, 531.

The Commission on Standards of Education and Experience for Certified Public Accountants (CPAs) was organized in 1952. The commission is independent of the American Institute of Accountants or any other one body. Its membership includes professors of accounting, deans of university schools of business administration, practicing CPA's and members of state boards of accountancy. The commission hopes to set goals which the state boards and schools might strive to approach over a reasonable term of years, together with suggestions for interim procedures which may be practical to follow in approaching what it is hoped may be accepted as longer-range objectives. Since the commission is concerned primarily with uniformity of standards, the CPA examination which has now been adopted by all jurisdictions in the U.S. may be said to be a subject of secondary importance to the commission. Any improvement or standardization of educational or experience training for the profession, however, is bound to lead to some consideration of the level and content of the written examinations.

The article focuses on direct costing and the uses of cost data. Cost accounting is utilitarian. Stated another way, cost accounting is not an end in itself, but a means to an end, which is why the uses to be made of cost data are so important. Just how good the cost accounting is, is determined, not by reference to a stated body of principles or to established concepts, but in terms of how well the accounting does in fact meet the needs which it is intended to serve. Cost data are used for a variety of purposes. No one method will supply data which will serve all purposes equally well. This means that the cost accountant has the alternative either of selecting the method best suited to the use which is considered primary and using the costs developed by this method for all other purposes, or of developing costs specifically for each intended use. More and more companies are adopting the second alternative and instructing cost departments not to honor requests for cost data until the use to be made of the data is stated and the costs developed with the stated use in mind.

The article presents the report of the president of the American Accounting Association for the year closing December 31, 1954. According to the report, The Accounting Review periodical has increased gradually in size during the past five years to about 800 pages annually. Manuscripts have been coming in nicely this past year. Good progress has been made during the past year on the research project, headed by Professor Ralph C. Jones of Yale University, and concerned with the effects of price level changes on financial statements. The growing importance of the association, and the increasing importance placed on accounting education by associations of practitioners, are attested to by the many requests for official representations at meetings of other accounting organizations, both in the United States and abroad. Plans were initiated in 1953 for the Association of University Teachers of Accounting in England and the American Accounting Association to sponsor jointly the publication of a volume of readings in the history of accounting.

Just as accounting is an indispensable tool for business executives and researchers in finance and management, so also is it becoming more and more important to economists in both industry and government. Over the past thirty years a new branch of accounting has been developed, in which the transactions of a nation rather than a business enterprise are pictured. Data from these accounts are valuable in assessing the overall business picture, the prospects for full employment and prosperity, the strength of foreign markets, the approach of currency convertibility, and a host of other facts vital to businessmen and economists alike. National income accounts appear in courses in income and employment or business cycles, while balance of payments accounting is dealt with in the study of international trade. The present article is intended to point out areas in which accounting departments can be of service to liberal arts students, particularly economics majors, who are learning the social accounts.