THIS PAPER is a sequel to [5] in which a generalized correlation coefficient (the trace correlation) for multi-equation models was presented. This paper is concerned with the development of partial trace correlations. The relation between partial trace correlations and the trace correlation is analogous to the relation between partial correlation coefficients and the multiple correlation coefficient in a single-equation model.2 In the latter the multiple correlation coefficient measures the extent to which the regression relationship on all of the independent variables accounts for the observed variation in the dependent variable. In addition there are partial correlation coefficients which measure the extent to which the regression on a particular independent variable explains the observed variation in the dependent variable, holding the influence of the other independent variables constant. Similarly in multi-equation models there is the trace correlation3 which is a measure of the extent to which the regression relationship explains the variation in the set of jointly dependent variables. The purpose of this paper is to develop the analogue of partial correlation coefficients for multiequation models, i.e., to develop a measure of the degree to which the regression relationship on a subset of the independent variables accounts for the variation in the jointly dependent variables, while holding the influence of the other independent variables constant. As in the case of the trace correlation the basic concepts are developed through the use of canonical correlation theory. This is done in Section 2, and in Section 3 partial trace correlations are defined. In Section 4 the asymptotic sampling variances are given.

in the determination of consumption patterns is rejected. The calculated marginal propensities to consume vary greatly for both races in different sections of the country (Table i) and this fact gives additional reason for rejecting the theory. The inference is clear that factors other than race are at work in the determination of consumption patterns. Although the data examined here do not rule race out as a factor in the determination of consumption patterns, they cast such serious reflections on the hypothesis as to make it, with all charity, useless. There are too many uncontrolled variables to warrant the conclusion that race alone is responsible for the difference in consumption patterns. It has become clear in this study that the concept of race as a factor in the statistical analyses of group economic behavior, such as in the assessment of so-called Negro-White savings and consumption patterns, has no more validity than left-handedness, eye pigmentation, or height. Before any realistic comparison is made on the amount spent on consumption by Negroes and Whites, adjustments should be made for the difference in their income expectation, age, dependents, education, location, financial reserves, and similar factors. Once these adjustments are made, differences attributed to race may find their origin in other factors. For example,

Reviews the book "Capital-Expenditure Decisions: How They Are Made," by Donald F. Istvan.

Reviews the book "Principles of Public Utility Rates," by James C. Bonbright.

Abstract This article focuses on the implementation of uniform standards of reporting for national voluntary agencies. The purpose of this article is to point out some of the pitfalls that may be encountered in the development and implementation of uniform standards of reporting in voluntary agencies. Since the lack of adequate funds for accounting data is very apparent, a pooling of resources is necessary. This pooling, in the instant case, involved a research study and a development of a computer program, which, after the initial cost of the study and the development of the computer program, allows each individual agency to obtain the cost data it so desperately needs for a relatively low cost. It appears that the approach taken in this article may also be relevant to the study about to be undertaken by the American Institute of Certified Public Accountants and would allow them to develop a workable program which could be implemented without disturbing the underlying accounting records of each voluntary agency for which adequate, uniform data is required.

Reviews the book "Price-Level Adjustments of Financial Statements," by Eldon S. Hendriksen.

The economic meaning of conservation, 99. — The maximum efficient rate and well spacing, 101. — State regulation, 110. — The intensive and the extensive margin, 118.