Journal Article Expectations, Uncertainty and Inventory Fluctuations Get access E. S. Mills E. S. Mills University College of North Staffordshire Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 22, Issue 1, 1954, Pages 15–22, https://doi.org/10.2307/2296220 Published: 01 January 1954

I. Adam Smith and man's wants, 275. — II. Extent to which wants for food are satiated, 276. — III. Relation of the capacity of the human stomach to satiation of wants for food, 278. — IV. Variations in economic cost of various diets, 280. — V. Relation of wants for food to wants for other consumer goods, 281. — VI. Factors of importance in determining the population a country can feed, 283. — VII. Conclusion, 285.

at a time when a further cut of farm income would be unwise. For Dr. Colm, the inadequate treatment of tax policy, the failure to consider the alternative sequels to an inventory decline (an interruption to a continued rise? a sideways movement after the decline? a further drop?) and finally the absence of any discussion of policy should the cold war become hotter these inadequacies are troublesome. Professor Bronfenbrenner wants a more adequate treatment of both growth and the international aspects of the problems. For Professor Hansen, the crucial weakness of the Report lies in the failure to deal with structural deficiencies related to a decline in government contribution and private investment. He contends that a revision of fiscal policy is required if GNP is to be maintained and to grow proportionately with the rise of productivity and numbers in the labor market. In the absence of a modified fiscal policy, the country's losses will be in the tens of billions of dollars. May I end by commending the excellent job done by the Joint Committee and its able staff, headed by Grover Ensley? The Chairman selected witnesses fairly, giving each vested interest fair representation and at the same time eliciting the cooperation of the best professional economists. Their seminars would have done credit to any university, with the discussion at a high level. There was no browbeating of witnesses: the purpose was to obtain the best assessments of the situation and the most practical proposals for therapy. In the Committee's Report, there was substantial agreement of members of both parties (the main areas of disagreement were some aspects of tax and investment policies); and more incisive and improved treatment (in the view of this writer) than in the Council Report on many points (e.g., public investment, a declaration to assure our friends abroad concerning anti-depression policy, agricultural policy, the adequacy of resources for a sound military policy). In view of the deterioration of Committee procedures on Capitol Hill, the Joint Congressional Committee deserves the approbation of all as a model committee. All the more to be regretted is the failure of other committees always to pay the attention that these recommendations deserve. It should be added, however, that the recommendations of the Joint Committee this year seem to have had considerable influence.

Abstract The article presents an analysis of the public utility earnings and rate base formula established in Missouri. First, an original cost undepreciated rate base is established. Second, a calculation is made, whereby, for study purposes only, a credit to operating revenue is set up for an amount equivalent to 3% per annum on the balance of the depreciation reserve. This amount, when added to the total actual operating earnings of the utility, gives a figure which will be compared with another figure equal to the established official rate of return applied to an undepreciated original cost rate base. Whenever the two figures coincide, the rate structure is considered to be sound. The Missouri concept grew out of the philosophy behind the original sinking fund method of depreciation. A utility has a choice of the disposition of the assets withheld as a consequence of operating expense charges for depreciation. The application of the sinking fund method in conjunction with an undepreciated rate base resulted essentially in the same equitable return to the utility stockholder as if there had been no fund and a fully depreciated rate base had been employed.