I. The inducement of innovations, 412. — II. Decision processes in the inducement of innovations, 415. — III. The adoption of new technologies, 422. — IV. The adjustment path of actual to latent demand, 424. — V. Induced innovations and Argentine agricultural development, 428

A. The process of accumulating knowledge, 208. — B. Growth with non-stationary innovation possibility function, 213. — C. Conclusion, 218

This article presents information on an empirical study designed to provide additional evidence about changes in accounting methods. The primary responsibility for effecting accounting changes currently rests with the management of a reporting firm. This results from a structure of accounting authority which leans heavily upon "general acceptance" of accounting practices among statement issuers and which allows flexibility for managers to tell their story as they see it. As long as this framework prevails, the primary pressure point for effecting changes in reporting practices will continue to be the management of the reporting firm. One can define an innovation as an idea perceived as new by the individual even if, in fact, it is not new. Diffusion is the process by which adoption of the innovation spreads. In terms of primary emphasis, this view differs substantially from that reflected in the diffusion of innovation studies which suggest that accounting change behavior is related primarily to the characteristics of the innovative accounting methods themselves, rather than to the behavioral set of the changer. Accounting change behavior is a complex phenomenon which is probably influenced to some extent both by the behavioral set of potential changers and by the characteristics of the particular changes as well as by other factors

The article assesses the feasibility and desirability of adopting a report issued by the Study Group on Introductory Accounting titled "A New Introduction to Accounting." An analysis of the recommended modules and topics reveals that many of the subject-matter suggestions are not really innovative. Consequently, any discussion of the feasibility and desirability of adopting the Study Group's recommendations can be limited to the specific suggestions that would require significant revision of the traditional first-year accounting curriculum. Given the imposed school-calendar and classroom-time constraints, it appears that only the first three innovations listed in the article can be feasibly adopted. If much less time is devoted to the discussion of bookkeeping procedures, the instructor should be able to greatly increase the emphasis placed on the use of accounting data in resource allocation decisions. If it is conceded that non-accounting majors do not need exposure to such topics as closing entries, trial balances, work sheets, and special journals, then it must be concluded that at least 80%of the class benefits by the shift in emphasis

One of the most important innovations in bond financing and in mortgage lending has been the rapid adoption of variable-rate instruments in recent years. Notes and bonds bearing an interest rate between one and two percentage points above the prime rate are becoming common in corporate financing. Similarly, variable-rate mortgages (VRM's) with the interest rate tied to the deposit rate of S&L's or linked to the changing yields on competing investments have spread beyond Florida and California to many states. The Federal Home Loan Bank Board has recently endorsed the variable-rate concept and the Federal Home Loan Mortgage Corporation is preparing guidelines for secondary market operations in VRM's. Portfolio managers are thus taking note of the possibility of acquiring long-term instruments providing some of the resiliency of yields and a measure of real value protection characteristic of short-term issues

This Committee the Association's Committee on Economic Education is charged to help improve the teaching of economics. This is obviously a many-faceted problem, and at most a committee like this can expect to play only a modest role in prodding, stimulating innovation, encouraging, and providing help on some fronts. During the past decade the Committee has attempted especially to stimulate research on the effectiveness of alternative teaching approaches, to stimulate attention to the teaching process, and to raise the prestige of teaching at the college level. These attempts are documented elsewhere.1 Building on them, we now suggest some next steps

The 1962 drug amendments seek to prevent wasted expenditure stimulated by exaggerated claims for effectiveness of new drugs by requiring premarketing approval of all new drug claims by the Food and Drug Administration. The compliance costs are shown to have engendered a marked reduction in drug innovation. Consumer surplus analysis is then adapted and supplemented with "expert" drug evaluations to estimate the relevant benefits and costs. The main finding is that benefits forgone on effective new drugs exceed greatly the waste avoided on ineffective drugs. The estimated net impact is equivalent to a 5-10 percent tax on drug purchases

The article presents a report of the 1971-1972 Committee on the Junior (Community) College Curriculum of the American Accounting Association (AAA) which provided recommendations to improve cooperation between community colleges and junior colleges. Students generally do not decide to major in accounting until their freshman or sophomore year in college. The number of students who transfer from community colleges to complete the baccalaureate degree with a major in accounting is steadily increasing. Two-year colleges are growing so rapidly that some day they may provide most of the introductory accounting education. The AAA should sponsor workshops, seminars, and/or courses that would acquaint community college teachers with innovative teaching methods as well as the significant concepts developed in recent years. The AAA should step up efforts to attract community college teachers to the regional and national meetings