ALBERT

Notes: The central concern of this paper is with the treatment of human resources in dynamic applications of capital and growth accounting. Despite many advances, national accounting conventions still give biased profiles of the economy, but the time is ripe for experimentation with measures that can correct those biases and provide a more adequate base for assessment of long-term economic performance and prospects.In the first section, the logic and feasibility of forward and backward measures of formation of human capital in the simplest case (of full-time schooling) is examined in parallel with physical capital. In a dynamic economy, which is rarely if ever in equilibrium, these approaches complement each other; they are poor substitutes. In section two a number of conceptual and measurement issues are considered with particular reference to human-capital investment periods and the treatment of appreciation, depreciation and obsolescence of human versus physical capital. Here special attention is given to the extended periods of investments in human resources, which overlap with realization of returns, and to the processes and agencies through which postschool investments are made. The last section presents a brief statement concerning asymmetries in disequilibrium biases with respect to the formation of human relative to physical capital. Drawing upon section 1 with regard to forward and backward measures and section 2 with regard to the critical importance of postschool learning, new possibilities in contributions of national accounting to a dynamic analysis of economic development are suggested.

Notes: After giving a brief discussion of the biases that exist in the conventional estimation procedures followed in the construction of national accounts, this paper argues for restructuring of national accounts so as to treat human capital formation as investment rather than consumption and suggests that a beginning should be made in respect of schooling. The argument is based on the notion that “investment” or “capital” is that which yields future income streams and also on the rather obvious point that treating as consumption large outlays that really constitute investment distorts analyses of resource allocation, growth and income distribution, and obscures intersectoral relations. It is pointed out that the proposed restructuring of national accounts is more relevant and important for developing countries, many of which are embarked on investment planning. Another major point emphasized is that the input of students’time should be properly measured and included in the estimates of capital formation by schooling.To illustrate what these proposals imply, revision has been attempted of the estimates of (a) educational outlay (or activity in the education sector), (b) gross capital formation, and (c) gross national product, pertaining to the national accounts of a major developing country, namely India, for the years 1960–61 through 1965–66. The modified estimates, though first approximations and covering only a part of the human capital formation and having a systematically downward bias, nevertheless indicate an upward revision of the estimate of activity in the education sector by about 200 to 300 percent, of gross capital formation by about 50 percent and of the gross national product by 4 to 7 percent. These magnitudes show the substantial order of distortion involved in the conventional procedures.

Notes: This paper considers the properties of the Divisia, or chain-link, index, as they relate to the argument that this is the most appropriate index for use in studying the sources of economic growth. The great advantage of the Divisia index is alleged to be its “accuracy”, that is, its capacity to combine time series of prices and quantities to give a true reflection of the height of a utility or production function over time. The paper shows that there are circumstances where the confidence in the accuracy of the Divisia index is justified, but that the conditions required are very restrictive and typically do not obtain in the contexts where the Divisia index is used. Misplaced confidence in the Divisia index has led to errors of interpretation that might otherwise have been avoided, and has given rise to a distorted view of the process of economic growth.

Notes: This essay focuses on the problems of estimating the share of America's personal wealth in the hands of affluent individuals by a technique known as the estate multiplier method. Rather than exploring these problems in an empirical vacuum, we first present some results from the most recent estimates of the distribution of U.S. personal wealth.1 The estimates—for the year 1969—are then used as a basis for gauging the sensitivity of estate multiplier estimates to variations in approach.Section I presents new empirical findings dealing with the asset holdings of top wealth-holders and the super rich, and with the shares of specific assets owned by them. Also presented is information about the sex and marital status of the super rich.Section II discusses various technical aspects of the estate multiplier as applied to federal estate tax returns. The main concern is with the weighting process, but attention is paid to the fact that estate tax returns filed in a given year are not for decedents who died in that year or any single year, and to the problems of adjusting the face value of life insurance to cash surrender value.

Notes: The only periodic data available in Canada on the asset holdings and net worth of the household sector are data collected through a series of household surveys originally initiated in 1954. Some limited data on the holdings of financial claims by the personal and unincorporated business sector are available from flow of funds work. Data are unavailable for estimation from estate tax returns.The scope of the surveys has been expanded substantially so that the most recent survey obtained a very comprehensive list of asset holdings. The experience with Canadian surveys has been similar to that of other countries; surveys appear to underestimate asset holdings although the estimates are more reliable for widely held assets than for assets with a very skewed distribution. Nevertheless, the surveys appear to trace the accumulated distribution of personal savings over time to a considerable degree and provide useful cross-sectional trend data.Canadian data show that wealth is more unequally distributed among family units than is income although wealth appears to be more equally distributed between income groups than is income. Wealth is also very unequally distributed within the same income group. Over time, there appears to have been some movement towards a more equal distribution of asset holdings between income groups.

Notes: 〈blockFixed type="quotation"〉Man may work from sun to sun, But woman's work is never done. Anon.It has become almost a cliché that measured growth in the U.S. is being overstated. The classic on the subject is by Mishan [5], who argues persuasively that the (uncounted) externalities from production in industrialized economies are overtaking the production which these economies are counting. But externalities are not the only problems in measuring economic activity and economic growth. Two other problems of equal importance, but more amenable to measurement, are the distinction between final and intermediate production, and the quantification of nonmarket productive behavior. In this paper, we concentrate on one aspect of the measurement of nonmarket behavior—the value of production at home by housewives./〉Specifically, we will present estimates of the value of home based nonmarket production by housewives. These estimates will then be used to supplement various national product aggregates in order to calculate more accurate growth rates for the U.S. economy. We find that the value of nonmarket production by married women during the 1960's has averaged approximately thirty percent of the GNP and close to 40 percent of the national income. The inclusion of the nonmarket work of housewives in GNP would reduce the measured rate of growth of real GNP per potential worker by about ten percent, the exact amount depending on how the value of nonmarket work is estimated. Our estimates indicate a reduction in the absolute rate of growth of almost 0.25 percent.

Notes: Some writers have emphasised the adverse environmental and social effects of economic growth, while others have claimed that countries with higher levels of social well-being also tend to enjoy higher levels of per capita output. The aim of this study is to see what statistical light can be thrown on these issues by collating and comparing seventeen different social indicators for twenty countries in two bench-mark years, 1951 and 1969.Two methods of analysing data are employed. First, all the countries are ranked for each indicator in turn for a particular year. Each country is then given a score ranging from 1 to 20 for each indicator, and the scores aggregated over the indicators to obtain an overall ranking score for every country. Secondly, the data are subjected to a principal components analysis to examine the correlation between the indicators. The first principal component is a potential candidate for use as a social index number. Changes in these social variables are then related to the rate of economic growth, and no evidence is found of a negative correlation between economic growth and social development. On the contrary, the results suggest a positive correlation between the two, although the strength of this relationship may be diminishing. It is not claimed that the results are in any sense the most preferred test of the form of the relationship between economic growth and social welfare, which must be a matter for subjective evaluation; rather they are seen as a contribution to the body of empirical evidence on this subject.

Notes: The paper analyzes annual revisions of figures for G.N.P. and 8 of its components in 40 countries. It arrives at the conclusion that first estimates are very often significantly biased downwards, especially Private Consumption, Fixed Investment, G.D.P. and G.N.P. Also successive revisions are sometimes correlated (negatively in most cases). The distribution of revisions differ as between developed and developing countries.

Notes: This paper presents the results of applying the mortality multiplier approach to estate duty statistics in order to estimate the size distribution of personal wealth in the Republic of Ireland. It commences with an examination of the limitations of the estate duty statistics, a discussion of the problems involved in collecting the data, and a short consideration of the mortality multipliers used.Estimates are presented for the size distribution of personal wealth, and the distribution of wealth between age groups. Some comparisons are given with wealth in Northern Ireland, Great Britain and the U.S.A. Estimates of the components of personal capital were not found possible.Finally, preliminary estimates are made for the distribution of wealth among married and single persons, in order to provide the basis for an analysis of wealth possessed by wealth-owning units (defined as single males, single females and married couples). By making extreme assumptions, upper and lower limits are placed on the actual pattern of the size distribution of wealth by wealth-owning units.

Notes: The basic theme of Mr. Webster's practical and uncontentious paper is that unreliability undermines credibility. In the following comment specific issues he mentions will be considered in more detail to illustrate some of the principal general points made in his paper.

Notes: The author addresses himself first to the problem that summary measures of wage income inequality, computed for Kinshasa, the main urban area in Zaire, tend to overstate the degree of total labor income inequality among sharing units of comparable size. It is argued that this is true for two main reasons: (1) earnings from female commercial activity are not recorded in the available statistics; and (2) the 1960 UN definition of household upon which the measures of inequality are based understates the size of the actual sharing unit. Data taken from the 1967 Socio-Demographic Survey of Kinshasa and the 1970 household budget study are used to test these hypotheses regarding short-run income inequality.The policy observation is made that, while modernization of the commodity distribution system may provide a disincentive for sharing and a reduction in opportunities for female employment, investment in non-service sectors may equalize the secular income distribution for a given migration cohort. Evidence of unskilled migrants moving from service to non-service sector employment in response to increased labor demand is presented. This is accomplished by supplementing sample survey data with time series on aggregate employment by sector for Kinshasa.

Notes: The reliability of the quarterly national income and product (NIP) accounts of the United States is examined from several standpoints. First, possible sources of error in the quarterly NIP accounts are explored, the most important being the lack of appropriate data, seasonal adjustment errors, sampling errors and biases, and the nature of the U.S. statistical system. Next, four ways of assessing the reliability of the accounts are considered. The most weight is given to measures of revisions in early estimates of the quarterly NIP aggregates. Results of previous studies of revisions are reviewed, and a summary of a major study of revisions for the period 1947–71 is given. The other ways of assessing reliability which are examined are the effect of errors on economic policy making, analysis of the statistical discrepancy, and expert judgment on sources and methodology.The degree of accuracy is judged to be generally sufficient for the policy decisions for which the NIP estimates are used. The early estimates of a quarter's change in GNP almost always distinguish whether the ultimate estimate will be large or small and will usually distinguish whether the ultimate estimate will be larger or smaller than the preceding quarter. While the accuracy of the estimates has generally been sufficient, the accuracy for 1965 was judged insufficient by policymakers. There is some evidence that errors have been reduced over time.

Notes: Most developing countries have compiled national accounts on a regular basis only for the last few years. It has not yet been possible for them to collect many of the statistics necessary to obtain good coverage of their economic activities by methods which would generally be accepted as reliable. Consequently the checks on reliability imposed by the framework of the national accounts are often absent, and the accounts prepared contain many estimates of doubtful quality. These doubts can usually only be removed as statistics collected by better methods become available. This is proving to be a slow process, partly because of the shortage of trained statistical staff and the competing demands of social and demographic statistics and partly because of the inherent difficulties in collecting good statistics from small businesses and traditional households. The need to define traditional households as producers as well as consumers leads to our demanding extra information from this difficult sector. In addition it is often difficult for the national accounts statistician, and even more so for the user, to find out in the time available exactly how some of the statistics with which he is presented were obtained. When this cannot be done it is impossible to assess their reliability. Thus assessing the overall reliability of national accounts in developing countries for even a limited range of uses is at present largely a matter of personal judgment. The information necessary to make more objective assessments rarely exists and hence the problems which developed countries face in using such information are not yet within the experience of most developing countries.

Notes: This paper examines the wealth position of blacks relative to whites, on the basis of data in the Survey of Economic Opportunity. The analysis indicates that at the same levels of both income and wealth blacks consistently invest more in consumer durables, especially housing, than do whites. The paper then explores possible explanations for this finding, suggesting that these investment differences are not solely due to the income and wealth position of blacks, but may be due to a smaller set of investment opportunities institutionally fostered by discriminatory forces.

Notes: The author attributes economic growth in Hungary to three factors: structural change, increase of employment, and productivity. On the basis of this he points out that in the 1950's the first two factors were responsible for nearly half of the economic growth. From the 1960's this tendency has changed; more and more importance has been taken by the increase of productivity. As the main source of economic growth is the increase of industrial productivity, in the further part of the study the author makes an attempt to break down the development of Hungarian industry into its components and to analyse their efficiency. Starting from the present conditions of industrial development he investigates what further increase of industry the resources accumulated till now and their probable growth will allow in the future.Taking into account the role of material and human resources the author draws the following conclusions.Industrial production will increase in the future at the same rate as productivity.The increase of industrial investment will probably be lessened, which postulates the greater increase of capital productivity as well as that productivity will increase at a higher rate than the capital-labour ratio.These conclusions assume an increase in the efficiency of industrial investment and an above average increase in the high-productivity branches.A further source of increasing productivity is accumulated human capital. The higher educational level is one of the guarantees for the ever-increasing role of productivity in economic growth in the future.

Notes: This paper compares preliminary estimates (available about four months after the close of the period to which they refer) with final estimates (available three years after the close of the period) for certain national accounting aggregates and some of their major components. It concludes that preliminary estimates are consistently low for gross domestic product, exports, and public consumption, whereas imports, private consumption, and gross capital formation may be either low or high. The best early estimates, in the sense of closest to the final figures, are those for gross domestic product, imports, and exports.

Notes: Economic realities can be described in national accounting only by certain approximative means and presumptions; therefore they cannot be measured with absolute accuracy. However, because of their great importance these investigations must fulfil as far as possible the reliability required for the economic control and planning of the national economy, in accordance with predetermined concepts and methods.The reliability of national accounting is favourable in Hungary, as they are based mostly (92 percent) on the bookkeeping data of enterprises, cooperatives and institutions. The bookkeeping system is uniform in all economic organizations, in conformity with central regulations, and it takes into account the demand of computations for national accounting.Despite these favourable conditions lesser or greater contradictions can be found in the national accounts every year. The absolute measure of the differences is not significant; however, if compared to the annual increase it results in uncertainty of 15 percent. The uncertainty is reduced by the fact that the sign of differences is the same every year.The author classifies the causes of uncertainty in national accounts into four groups: 1. problems of the time shift of the connected economic processes and of their accounting; 2. effect of the enterprise interests; 3. inadequacy of methodological regulation; 4. inaccuracy of data surveys and processing. The study deals with the special factors of inaccuracy occurring in constant price accounting. Inaccuracy of the most important aggregates, for instance that of the volume index of the national income, comes to 0.5-0.7 percent which results, in the case of a yearly 5 percent “real” increase in the index, in reliability limits of 10 to 15 percent.In the concluding part of the study the author points out that in Hungary the unexplored contradictions are not shown as “statistical discrepancy” but they are included in the various aggregates on the basis of considerations discussed in the study.

Notes: Defining investment as outlays that increase income- and output-producing capacity, the author presents estimates of human investment in the United States 1929–69, comprising rearing costs, education, training, health, safety and mobility outlays. He develops an economic accounting framework to accommodate human investments and research and development in national and sector capital accounts, with appropriate adjustments to the current accounts to provide consistency. The associated balance sheets and wealth statements are also developed.The wealth and corresponding income estimates are used to compute rates of return on human, non-human, and total capital. In the business economy the average net rate of return on total capital was 10.6 percent in 1969, compared with 10.0 percent in 1929. The average and marginal rates of return on human capital were generally somewhat higher than on non-human capital throughout the period.

Notes: Radical changes, up and down, have taken place in the estimates of growth in total factor productivity in the U.S. made by different economists, or by the same economists at different times. If such estimates provide “some sort of measure of our ignorance,” as Abramovitz once put it, we seemed to be a lot less ignorant in 1927 (when Cobb and Douglas published their famous paper), or in 1967 (when Jorgenson and Griliches published theirs), than we were in the years between (when Schmookler, Abramovitz, Kendrick, and Denison completed their studies), or than we are today (when we have, or will soon have, revised estimates by Denison and by Kendrick, and new estimates by Christensen and Jorgenson). Viewed in this perspective, many questions may be raised about the significance of the current estimates that something like a third or more of the rate of increase in U.S. national output is “due” to increase in productivity, as well as about the concepts, data, and methods that underlie the estimates. A list of particular subjects worth considering for research is given and each is briefly discussed.

Notes: This paper examines the available evidence relative to the distribution of income in a developing country, Colombia, over a relatively long span of years, roughly from the mid-30s to the mid-60s, especially in the context of the argument that recent growth has been characterized by worsening distribution and stable or declining incomes for lower income groups. The basic conclusions are that income distribution within agriculture worsened throughout the period, while non-agricultural income probably worsened from the mid-30s to the early 50s, improved from then to the mid-60s, and then leveled off. During the period of improvement in non-agricultural income, it appears that the overall distribution also improved somewhat. Over the period as a whole, the main gainers have been the second and third deciles from the top; the top decile appears to have lost. The bottom two deciles also appear to have lost.

Notes: This paper examines two different approaches to the estimation of the size distribution of wealth. The first section describes new estimates for the distribution in Britain in 1968 using the estate method and discusses the sensitivity of the results to the main assumptions. The second section presents preliminary estimates using the investment data, a method which has not been widely used. In the final section the results obtained for the upper tail of the distribution from the two methods are compared.

Notes: Book Reviewed in this article: Housing the Poor, edited by Donald J. Reeb and James T. Kirk, Jr. Only Six Million Acres: The Decline of Black Owned Land in the Rural South, prepared under the direction of Robert S. Browne. Ghetto Revolts: The Politics of Violence in American Cities by Joe R. Feagin and Harlan Hahn. Planning and Urban Growth: An Anglo-American Comparison by Marion Clawson and Peter Hall. A World of Strangers: Order and Action in Urban Public Space by Lyn H. Lofland. Societal Development: Five Approaches with Conclusions from Comparative Analysis by Szymon Chodak. Location Preferences, Migration, and Regional Growth: A Study of the South and Southwest United States by Niles M. Hansen. Urban Growth and the Circulation of Information: The United States System of Cities, 1790–1840 by Allan R. Pred. Regional Growth Theory by Harry W. Richardson. Beyond God the Father: Toward a Philosophy of Women's Liberation by Mary Daly. Female and Male in Latin America: Essays, edited by Ann Pescatello. Forecasting Recreation in the United States: An Economic Review of Methods and Applications to Plan for the Required Environmental Resources by Charle J. Cicchetti.

Notes: The bitter truth is this: growth does not appear everywhere at the same time; it becomes manifest at points or poles of growth, with variable intensity; it spreads through different channels, with variable terminal effects on the whole of the economy.1

Notes: The Grapevine is intended to be of service to our readers by providing an informal section for the presentation of comments, news of regional development, and anything else pertaining to the area. We invite readers’ reactions and contributions. Our address is Grapevine Author, Growth and Change, College of Business and Economics, University of Kentucky, Lexington 40506.

Notes: Book reviews in this article: G.D.H. COLE AND INDUSTRIAL DEMOCRACY: A REVIEW: The World of Labour Introduction by John Lovell G.D.H. COLE AND INDUSTRIAL DEMOCRACY: A REVIEW: Self-Government in Industry Introduction by J. G. Corina G.D.H. COLE AND INDUSTRIAL DEMOCRACY: A REVIEW: Workshop Organisation Introduction by A. I. Marsh WORKPLACE INDUSTRIAL RELATIONS: Building: Teamwork or Conflict? by L. G. Bayley The Management of Wage Payment Systems by Alan Gillespie Labour Relations on the Docks by M. Jackson ORGANIZATIONAL BEHAVIOUR: Social Psychology of the Work Organisation by A. S. Tannenbaum Organisational Problems in European Manufacture by T. D. Weinshall LABOUR ECONOMICS: Manpower Economics by E. B. Jakubaus and Neil A. Palomba Labour Economics by J. E. King Unemployment and Wage Inflation with Special Reference to Britain and the U.S.A. by J. Taylor UNEMPLOYMENT: Regional Unemployment Differences in Great Britain by P. C. Cheshire Interregional Migration Models and their Application to Great Britain by R. Weeden The Changing Pattern of Employment—Regional Specialisation and Industrial Localisation in Britain by M. Chisholm and J. Oeppen Men Out of Work—A Study of Unemployment in Three English Towns by M. J. Hill, R. M. Harrison, A. V. Sargeant and V. Talbot Do The Poor Want To Work? A Social-Psychological Study of Work Orientation by L. Goodwin Marienthal: The Sociography of an Unemployed Community by M. Jahoda, P. F. Lazarsfeld and H. Zeiselb

Notes: Book reviews in this article: INDUSTRIAL RELATIONS IN THE COMMON MARKET by Campbell Balfour AN INCOMES POLICY FOR BRITAIN edited by F. Blackaby PILOTS AND MANAGEMENT: Industrial Relations in the UK Airlines by A. N. J. Blain WHITE COLLAR UNIONISM IN BRITAIN: A SURVEY OF THE PRESENT POSITION by Roger Lumley THE EFFECTIVENESS OF FRINGE BENEFITS IN INDUSTRY by Jane Moonman UPGRADING BLUE COLLAR AND SERVICE WORKERS by Charles Brecher HUMAN RESOURCES - OBTAINING RESULTS FROM PEOPLE AT WORK by E. J. Singer and J. Ramsden

Notes: The Grapevine is intended to be a service to our readers. Our goal is to provide in these pages the things which will make the regional planner, academician, or whoever picks up the journal a little better informed on the happenings in his or her field. We would like to say that we have access to most of the news in regional development, but with each issue we enviously note that other journals contain information which we wish we had printed. To become more useful, we need our readers’ help. If you know of a seminar, conference, award, scholarship, fellowship, new publication, or something else interesting and pertinent occurring (being awarded, etc.) within the next six months, please forward an announcement to us for possible inclusion in the Grapevine. We will appreciate your cooperation. Our address is Grapevine Editor, Growth and Change, College of Business and Economics, University of Kentucky, Lexington, Kentucky 40506.

Notes: Modernizing Urban Land Policy, edited by Marion Clawson. Baltimore, The Johns Hopkins University Press for Resources for the FutureUrbanization, Planning, and National Development by John Friedmann. Beverly Hills, Cal.Empirical Models of Urban Land Use: Suggestions on Research Objectives and Organization, Exploratory Report 6, by H. James Brown and others. New York, distributed by Columbia University Press for National Bureau of Economic Research, 1972.Regional and Interregional Intersectoral Flow Analysis: The Method and an Application to the Tennessee Economy by Tong Hun Lee, John R. Moore, and David P. Lewis. Knoxville, The University of Tennessee Press, 1973.Foreign Investment and Regional Development: The Theory and Practice of Investment Incentives, with a Case Study of Belgium by G. Richard ThomanWater Supplies and Economic Growth in an Arid Environment: An Arizona Case Study by Maurice M. Kelso, William E. Martin, and Lawrence E. Mack.Decentralizing the City: A Study of Boston's Little City Halls by Eric A. NordlingerThe Political Economy of Urban Poverty by Charles Sackrey.Managed Integration: Dilemmas of Doing Good in the City by Harvey Luskin MolotchHousing Investment in the Inner City: The Dynamics of Decline: A Study of Baltimore, Maryland, 1968-1970 by Michael A. Stegman.The Dynamics of Housing Rehabilitation: Macro and Micro Analyses by David Listokin.Longtime Californ': A Documentary Study of an American Chinatown by Victor G. and Brett de Bary NeeMexican Americans by Ellwyn R. Stoddard Chicanos and Rural Poverty by Vernon M. Briggs, Jr. Baltimore The Education of Black Folk: The Afro-American Struggle for Knowledge in White America by Allen B. Ballard A Giant in the Earth by Robert Katz Planned Unit Development: New Communities American Style by Robert W. Burchell with James W. Hughes. Financial Analysis and the New Community Develop-ment Process by Richard L. Heroux and William A, Wallace Bibliography of the Philosophy of Technology, compiled by Carl Mitcham and Robert Mackey. Power and Wealth: The Political Economy of International Power by Klaus Knorr Partnership or Confrontation? Poor Lands and Rich by Paul Alpert.

Notes: PERSONNEL AND MANPOWER MANAGEMENT: A Guide to Manpower Planning: A. M. Bowey PERSONNEL AND MANPOWER MANAGEMENT: The Personnel Management Process—human resources administration (3rd ed.): W. French PERSONNEL AND MANPOWER MANAGEMENT: Personnel Management and Organisation Development: fields in transition: W. L. French D. Hellriegel. PERSONNEL AND MANPOWER MANAGEMENT: Planning for Human Resources: L. Margerison D. Ashton (ed.) PERSONNEL AND MANPOWER MANAGEMENT: Organisation of Management Development Programmes: D. S. Markwell T. J. Roberts. PERSONNEL AND MANPOWER MANAGEMENT: Personnel Management in Hospitals: G. Millard. PERSONNEL AND MANPOWER MANAGEMENT: Personnel Planning and Occupational Choice: S. Timperley. PERSONNEL AND MANPOWER MANAGEMENT: Problems and Policies in Personnel Management—a case book (2nd ed.): J. W. Towle S. M. Schoen R. L. Higgert. PERSONNEL AND MANPOWER MANAGEMENT: Occupational Choice. A selection from The Sociological Review: W. M. Williams, ed. INDUSTRIAL DEMOCRACY: Participation in Management: Industrial democracy in three Western European Countries: W. Albeda, ed. INDUSTRIAL DEMOCRACY: Worker Participation and Collective Bargaining in Europe Commission on Industrial Relations INDUSTRIAL DEMOCRACY: Worker Participation: individual control and performance: D. Guest D. Fatchett INDUSTRIAL DEMOCRACY: Working Power: policies for industrial democracy: G. Radice, ed. INDUSTRIAL DEMOCRACY: Worker Participation in Britain Social Policy Research Ltd. INDUSTRIAL DEMOCRACY: Workers' Management and Workers' Wages in Yugoslavia—the theory and practice of participatory socialism: H. M. Wachtel TRADE UNIONS: Social Stratification and Trade Unionism: G. Bain D. Coates V. Ellis. TRADE UNIONS: Trade Unionism: J. A. Banks TRADE UNIONS: Trade Unions and Society—the struggle for acceptance, 1850–1880: W. M. Fraser. TRADE UNIONS: The First Shop Stewards Movement: J. Hinton TRADE UNIONS: The Union of Post Office Workers—a study in political sociology: M. Moran TRADE UNIONS: Political Purpose in Trade Unions: I. Richter TRADE UNIONS: Labour: the Unions and the Party—study of the trade unions and the British Labour movement: B. Simpson TRADE UNIONS: White-Collar workers and the U.A.W. C. D. Synder THE MULTINATIONAL COMPANY: The Multinational Company in Europe—some key problems: M. Z. Brooke H. L. Remmers (ed.) THE MULTINATIONAL COMPANY: Multinational Corporations and National Government. A case study of the United Kingdom's experience 1964–1970: M. Hodges THE MULTINATIONAL COMPANY: MuItinational Enterprises and Social Policy THE MULTINATIONAL COMPANY: American Labour and the Multinational Corporation: O. Kujawa, ed. THE MULTINATIONAL COMPANY: International Business and Multinational Enterprises: S. H. Robock K. Simmonds THE MULTINATIONAL COMPANY: Multinational Business: V. Salera THE MULTINATIONAL COMPANY: Managing the Multinational Enterprise: Organisation of the firms and ownership of the subsidiaries: J. M. Stopford L. T. Well, Jr. INCOME DISTRIBUTI0N: Unequal Shares: wealth in Britain: A. B. Atkinson INCOME DISTRIBUTI0N: Low Pay and How to End it—a union review: A. Fisher B. Dix. INCOME DISTRIBUTI0N: Poverty, Inequality and Class Structure: A. Wedderburn, ed. INDUSTRIAL CONFLICT: Measurements of Labour Disputes and their Economic Effects: M. Fisher INDUSTRIAL CONFLICT: Strikes and Industrial Conflict: Britain and Scandinavia: G. K. Ingham. INDUSTRIAL CONFLICT: Strike—A live history 1887–1971: R. A. Leeson. INDUSTRIAL CONFLICT: Case Studies in Industrial Law and Relations: J. Ritson BRITISH LABOUR LEGISLATION: Unfair Dismissal and the Law: S. D. Anderman BRITISH LABOUR LEGISLATION: Pay and Price Control Guide: B. Bracewell-Milnes BRITISH LABOUR LEGISLATION: The Industrial Relations Act—a comprehensive guide: C. Crabtree. BRITISH LABOUR LEGISLATION: Industrial Tribunals—a practical guide: R. M. Greenhalgh. BRITISH LABOUR LEGISLATION: Industrial Relations: R. C. Simpson J. C. Wood. PUBLIC EMPLOYMENT: Managing the Health Service: S. C. Haywood. PUBLIC EMPLOYMENT: Management by Objectives in Local Government: J. W. Glendinning R. E. M. Bullock. PUBLIC EMPLOYMENT: General Review of Conditions of Employment of Public Services: International Labour Organisation. PUBLIC EMPLOYMENT: Career Problems in the Public Service: International Labour Organisation. PUBLIC EMPLOYMENT: Staff Relations in the Civil Service—fifty years of Whitleyism: M. Parris. PUBLIC EMPLOYMENT: Public Employee Unionism: Structure, growth, policy Studies of Unionism in Government: J. Stieber PUBLIC EMPLOYMENT: The Unions and the Cities. Studies of unionism in government: H. M. Wellington R. K. Winter, Jr. COMPARATIVE INDUSTRIAL SOCIOLOGY: Japanese Blue Collar-the changing tradition R. E. Cole COMPARATIVE INDUSTRIAL SOCIOLOGY: African Railwaymen: solidarity and opposition in an East African labour force R. D. Grillo COMPARATIVE INDUSTRIAL SOCIOLOGY: The Aristocracy of Labourthe position of the skilled craftsman in the American class structure G. MacKenzie COMPARATIVE INDUSTRIAL SOCIOLOGY: The Ghanaian Factory Worker: Industrial Man in Africa M. Peil

Notes: Book reviews in this article: LABOUR AND THE LAW Hamlyn Lectures No. 24 Otto Kahn-Freund PERSONNEL MANAGEMENT LAW by F. W. Rose MANAGEMENT BY AGREEMENT by W. E. J. McCarthy and D. Ellis STRAIGHT JACKET OR FRAMEWORK: The implications for management of the Industrial Relations Act by E. G. A. Armstrong INCOMES POLICY, EQUITY AND PAY INCREASE DIFFERENTIALS by Hilde Behrend INCOMES POLICY AND CAPITAL SHARING IN EUROPE by Derek Robinson PAY, PRODUCTIVITY AND COLLECTIVE BARGAINING by Robert B. McKersie and Laurence C. Hunter GOVERNMENT AND INDUSTRY IN BRITAIN: THE FEDERATION OF BRITISH INDUSTRIES IN POLITICS, 1945–65 by Stephen Bland WHITE COLLAR UNIONS—A REVIEW Institute of Personnel Management WHITE COLLAR UNIONISM IN BRITAIN: A SURVEY OF THE PRESENT POSITION by Roger Lumley PARTICIPATION IN INDUSTRY by C. Balfour THE APPLICABILITY OF ORGANIZATIONAL SOCIOLOGY by Chris Argyris WORKING FOR FORD by H. Beynon REDUNDANCY AND PATERNALIST CAPITALISM: A STUDY IN THE SOCIOLOGY OF WORK by Roderick Martin and R. H. Fryer

Notes: Elites and Change in the Kentucky Mountains by H. Dudley Plunkett and Mary Jean Bowman. Lexington, The University Press of Kentucky, 1973. xii + 204 pp. $11.00.The Coming of Post-Industrial Society: A Venture in Social Forecasting by Daniel Bell. New York, Basic Books, Inc., 1973. xiv+507 pp. $12.50.The Second American Revolution: Some Personal Observations by John D. Rockefeller, 3rd. New York, Harper & Row, 1973. xvi + 189 pp. $6.50.Setting National Priorities: The 1974 Budget by Edward R. Fried, Alice M. Rivlin, Charles L. Schultze, and Nancy H. Teeters. Washington, D.C., The Brookings Institution, 1973. xx + 446 pp. $3.95 (paperback).Metropolitan Financing: The Milwaukee Experience, 1920-1970 by Donald J. Curran. Madison, The University of Wisconsin Press, 1973. xiv + 166 pp. $11.50.Freedom to Build: Dweller Control of the Housing Process, edited by John F. C. Turner and Robert Fichter. New York, The Macmillan Co., 1972. xvi + 301 pp. $8.95.Pollution: Economy and Environment by Peter A. Victor. Toronto, University of Toronto Press, 1972. 247 pp. $17.50.Population, Resources, and the Future: Non-Malthusian Perspectives, edited by Howard M. Bahr, Bruce A. Chadwick, and Darwin L. Thomas. Provo, Utah, Brig-ham Young University Press, 1972. viii + 352 pp. $3.95 (paperback).For Better or for Worse: The Ecology of an Urban Area by Harold Gilliam. San Francisco, Chronicle Books, 1972. viii+184 pp. $5.95.Black Political Parties: An Historical and Political Analysis by Hanes Walton, Jr. New York, The Free Press, 1972. xii + 276 pp. $7.95.Biracial Politics: Conflict and Coalition in the Metropolitan South by Chandler Davidson. Baton Rouge, Louisiana State University Press, 1972. xviii +301 pp. $11.95.The Professor and the Public: The Role of the Scholar in the Modern World, compiled by Goldwin Smith. Detroit, Wayne State University Press, 1972. 124 pp. $4.95.Power over People by Louise B. Young. New York, Oxford University Press, 1973. xiv + 216 pp. $7.50.Highways to Nowhere: The Politics of City Transportation by Richard Hébert. Indianapolis, The Bobbs-Merrill Co., 1973. xviii +214 pp. $7.95.

Notes: Book reviews in this article:The United Nations Research Series on Regional Development: A Review ArticleMICHAEL E. CONROYFive Countries Compared Regional Development Strategy in Southeast Europe: A Comparative Analysis of Albania, Bulgaria, Greece, Romania and Yugoslavia by George W. Hoffman.The Irish Situation Ireland: Some Problems of a Developing Economy, edited by A. A. Tait and J. A. Bristow.The Costa, Sierra, and Selva Society, Schools, and Progress in Peru by Rolland G.Twentieth-Century Feminism The American Woman: Her Changing Social, Economic, and Political Roles, 1920-1970 by William Henry Chafe.Lawyer, Judge, Civic Leader A Mind of One Piece: Brandeis and American Reform by Melvin I.Legal Decision Making The Supreme Court and Social Science by Paul L. Rosen.Strange Amalgam The New Federalism by Michael D. Reagan.Economic Theory and the City Urban Economic Analysis by Werner Z. Hirsch.Disquieting Implications On the Urban Scene, edited by Morton Levitt and Ben Rubenstein.On Supervision Issues in Human Services by Florence Whiteman Kaslow and Associates.Big Business The Corporate Economy: Growth, Competition and Innovative Potential, edited by Robin Marris and Adrian Wood.A 300-Year Narrative American Enterprise: Free and Not So Free by Clarence H. Cramer.For Better Government Public Planning: Failure and Redirection by Robert A. Levine.For Better Cities The Urban Wilderness: A History of the American City by Sam Bass Warner, Jr.Briefer MentionA Veritable Library Whatever Happened t o State Budgeting? edited by S. Kenneth Howard and Gloria A. Grizzle.The Computer Takes Over The Cashless Society by Robert A. Hendrickson.

Notes: The business firm confronts interdependent decision problems in production, investment, and finance. Emphasis is here placed on the firm's decision criteria in disequilibrium situations or at infra-optimum structural planning and decision points. The operative cost of capital is shown to be ‘the full marginal cost of relaxing the money capital availability constraint’. The popular ‘weighted average cost of capital’ is shown to be an ‘equilibrium datum’ which has operative significance only at optimum structural positions. It does not offer adequate guidance to financing and investment decisions in disequilibrium situations.

Notes: Investors’ alleged preference for current rather than future dividends cannot, it is argued, be explained by the hypothesis of a progressively higher discount rate for more distant dividends to reflect increasing riskiness. It is more likely to be caused by inadequate standards of disclosure by companies concerning their intended uses of the funds retained by them, as compared with the standards required for external sources of finance, and by the market's consequent lack of confidence in the productivity of the former.

Notes: In granting trade credit, the credit manager must weigh the expected profit from a sale against the risk of customer default. A common procedure is to sell on credit only to those customers whose risk of default is below some critical level. This procedure does not effectively control a firm's ratio of bad debt to sales. In this paper, formulas are derived for the variance of this ratio under various assumptions regarding the number and size distribution of customers. Knowledge of this variance enables the credit manager to more accurately control his credit losses.

Notes: This note comments on the doubtful application of an economic concept of personal income to the non-personal business enterprise situation.This paper presents a series of models which we believe properly reflect the relevant relationships in the lease or buy evaluation. The models present the proper cash flow variables for such an analysis and they present the impact on asset net present value of cost of capital and market risk assessment. Finally, the models reflect the simultaneous effect on asset and financial structure of the acceptance of a particular investment opportunity.

Notes: The paper develops a model of the price determination of convertible loan stock in the UK, the parameters of which are then estimated. The methodology employed is essentially an extension of the premium adjusted approach, the convertible price being calculated by adjusting the value of the inherent equity for the various differences between the two forms of security such as arise in income entitlement, downward protection and marketability. Also the results using this model are compared with similar models developed from USA data, showing a remarkable degree of similarity.

Notes: An algebraic relationship is developed linking the expected long-term yield to an investor with the company's expected internal rate of return on its equity assets. Assuming that the market normally ranks shares by expected yield, allowing where necessary for a risk premium, it is shown that the cost of equity capital must be the company's expected internal rate of return.