I. The nature of optimum size, 569. — II. Problems in estimating optimum size, 570. — III. Previous techniques for the estimation of optimum size, 572. — IV. The survivor technique, 572. — V. Applying the technique, 574. — VI. An investigation of the relationship between optimum plant size and various economic variables, 582. — VII. Summary and conclusions, 596. — Appendix I. Optimum size in 89 American manufacturing industries, 598. — Appendix II. Four possible movements in the distribution of plants, 603. — Appendix III. Measurement of the independent variables, 605.

IT is widely believed that for some individuals saving may be negatively related to the rate of interest. The argument is usually put in terms of a person's desire to have a particular sum (or an annuity of a particular size) available at some future date. In such a circumstance a rise in the rate of interest will make easier (in terms of present abstention from consumption) the attainment of that particular future sum (or annuity). Therefore, the argument continues, the rise in the interest rate will reduce saving.' We do not wish to question the proposition that such perverse reaction to changes in the interest rate may adequately describe the behavior of some individuals; however, we do propose to criticize the extension of the proposition about individuals to the body of consumers in aggregate. This paper takes issue with those who contend that the aggregate saving-interest rate function for households may be perverse. 2 Our purpose is threefold. First, we wish to demonstrate that the use of the saving-for-a-fixedfuture-sum argument as support for the hypothetical negative relation between aggregate personal saving and the interest rate has unacceptable implications. In particular, it will be shown that it implies that aggregate personal saving is non-positively associated with aggregate real income.3 Second, we shall argue that a more general way to discuss a negative relation between saving and the rate of interest is in terms of the price elasticity of demand for future goods. Saving for a fixed future sum is a special case of this more general phenomenon. But third, we shall demonstrate that if the aggregate saving-interest rate relation is perverse, then the implied reaction of consumers to changes in expected future money prices would also be perverse.4 We shall treat these matters in turn after introducing the geometric tools.

HIS paper presents a model of T which is an extension to n sectors of the original one-sector equilibrium paths developed by R. F. Harrod and E. D. Domar.1 Following Harrod, we employ discrete periods of time and hence a (first-order) difference equation technique. However, in order to give the model a prescriptive rather than a predictive overtone, the first differences refer to the immediate future instead of the immediate past. In addition, an allowance for depreciation is included in the model. By balanced growth we simply mean the existence of equilibrium (the equality of supply and demand) in every market in every time period. Equiproportionate of each market is a special case of as used in this paper. Prices do not explicitly enter the model. Supply in each market is an increasing linear function of the existing capital stock in that sector or industry, and hence the model refers to a one-factor economy. However, capital is not transferable from one sector to another. The single factor of production (capital) is produced by a single industry, the investment-goods industry, the input into which is also capital. Demand for the output of each industry, with the exception of the investment-goods sector, is an increasing linear function of net real income. By definition, these industries are producers of consumption goods, all of which are non-inferior from the point of view of the income-demand relation. The demand for investment goods is a mixed accelerator-multiplier relation. The solution of the system expresses net aggregate output as a function of integral values of time. The output of each sector at any time can then be determined from the structural equations of the model.

The article presents several problems related to accounting, which were prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the second half of the C.P.A. examination in accounting theory on May 19, 1961. Some of the questions were based on the topic of consolidated statements of any company, like, whose financial position is represented by consolidated statements; consolidated statements and beneficiaries; proper consolidated statements of companies, etc. One of the problem states that a company P had 300,000 shares of stock outstanding. It owned 75% of the outstanding stock of T. T owned 20,000 shares of P's stock. The figure of P's outstanding stocks in the consolidated balance sheet has been asked. A question has been asked that is it acceptable accounting treatment to carry investments in subsidiaries not consolidated at cost. A question focuses on the issue of the profit increment of any company, but no valid reasons in support of this growth has been presented to the president by the accountant, as everything seems as stable as it looked when the company started.

This article focuses on the examination in theory of accounts of the Uniform Certified Public Accountants. There were two groups of question. In one of the question one is to indicate the nature of the account or accounts to he debited when recording each transaction using tile preferred accounting treatment by placing an "X" in the proper column on the answer sheet provided. Prepayments should be recorded in balance sheet accounts. Disregard income tax considerations unless instructed otherwise. The question includes facts like, the Talbot Co. spent $8,600 during the year for experimental purposes in connection with the development of its product. This is approximately the same amount that the company has been spending for this purpose annually for many years. The Placey Co. recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books. Razing costs of $1,200 were incurred in removing the smaller building, which had an appraised value at acquisition of $6,200, in order to make room for new construction.

Reviews the book "Accounting and Tax Aspects of Patents and Research," by J.A. McFadden and C.D. Tuska.