ALBERT

Notes: AS long as economics is conceived as a purely formal science of human action (praxeology) the basic concepts and findings of such behavioral sciences as psychology, sociology and cultural anthropology will be considered as irrelevant for economic analysis. However, if economics is considered as an empirical (substantive) science which starts from actual human needs and places man's dependence upon and interaction with his natural and social environment in the center of its investigation, the basic concepts and conclusions of the behavioral sciences cannot be dispensed with.ZUSAMMENFASSUNGNationalökonomie und die Wissenschaften vom menschlichen Verhalten. So lange die Nationalökonomie als eine rein formale Wissenschaft vom menschlichen Handeln (Praxeologie) begriffen wird, erscheinen die grundlegenden Konzeptionen und Erkenntnisse der Verhaltenswissenschaften wie der Psychologie, der Soziologie und der Kulturanthropologie für die ökonomische Analyse als irrelevant. Wenn indessen die Nationalökonomie als wirklich empirische Wissenschaft betrachtet wird, die von den tatsächlichen menschlichen Bedürfnissen ausgeht und die Abhängigkeit des Individuums von seiner natürlichen und sozialen Umgebung sowie deren Wechselwirkung in den Mittelpunkt ihrer Forschungen stellt, so können die grundlegenden Konzeptionen und Folgerungen der Verhaltenswissenschaften nicht übergangen werden.RÉSUMÉĽ economie politique et les sciences du comportement humain. Tant que ľéconomie politique sera concue comme une science purement formelle de ľ action humaine (praxéologie), les concepts fondamentaux et les découvertes des sciences du comportement humain telles que la psychologie, la sociologie et ľ anthropologie culturelle seront considéréd comme de peu ď importance pour ľ analyse économique. Cependant, si ľéconomie politique est considérée comme une science effectivement empirique qui part des besoins humains réels et place la dépendance de ľ homme de son ambiance naturelle et sociale ainsi que ľ action réciproque de cette dernière au centre de ses recherches, les conceptions et conclusions fondamentales des sciences du comportement humain ne peuvent etre négligées.The question then arises as to the proper method by which the results of one field of inquiry can be utilized in another. Such integration is possible only if we find or formulate common denominator concepts sufficiently broad to contain and cut across the subject-matter of several social disciplines. Which particular concepts are likely to prove useful for a “substantive” science of economics depends upon the nature of the central research problems of contemporary economic analysis. Since these germinal questions of modern economics are all related to the behavior of social groups and of individuals acting as members of structured social entities the basic concepts and findings of social psychology and cultural anthropology are likely to prove most useful for the substantive-empirical economist.Having outlined the major concepts which have proved helpful in the analysis of group decisions and the individual-group relationship the article concludes by setting forth the thesis that a substantive science of economics must be conceived from the very outset as an integral part of a science of man and culture. Such a “humanization” of economics would have the task of placing the living human being once more in the center of economic analysis and, at the same time, would provide a starting point for the solution of the urgent task of integrating our contemporary knowledge about man and culture.Es stellt sich dann die Frage, durch welche Methode die Ergebnisse des einen Forschungsgebiets im andern verwendet werden können. Eine solche Integration ist nur dann möglich, wenn für die verschiedenen Konzeptionen gemeinsame Nenner gefunden oder formuliert werden können, die weit genug sind, um den Gegenstand verschiedener Sozialwissenschaften zu umfassen. Welche Konzeptionen sich für eine wirklich empirische Wissenschaft als nützlich erweisen dürften, hängt von der Natur der zentralen Forschungsprobleme der heutigen ökonomischen Analyse ab. Da alle diese grundlegenden Fragen der modernen National ökonomie sich auf das Verhalten sozialer Gruppen und des Einzelnen beziehen, die als Glieder sozialer Gebilde von bestimmter Struktur handeln, dürften die grundlegenden Konzeptionen und Erkenntnisse der Sozialpsychologie und der Kulturanthropologie für den empirischen Ökonomen von grossem Nutzen sein.Nach einer Skizzierung der hauptsächlichsten Konzeptionen, die sich für die Analyse von Gruppenentschlüssen und der Beziehung zwischen Individuum und Gruppe als nützlich erwiesen haben, wird die These aufgestellt, dass eine wirklich empirische Nationalökonomie von allem Anfang an als ein wesentlicher Teil einer Wissenschaft vom Menschen und der Kultur begriffen werden muss. Eine solche “Humanisierung” der Nationalökonomie hätte zur Aufgabe, den Menschen - so wie er in Wirklichkeit ist - in den Mittelpunkt der ökonomischen Analyse zu stellen, und würde gleichzeitig den Ausgangspunkt darstellen für die Lösung der dringenden Aufgabe, unser gegenwärtiges Wissen über den Menschen und die Kultur zu integrieren.La question se pose alors de savoir par quelle méthode les résultats ď un domaine de recherche peuvent etre utilisés dans ľ autre. Une telle intégration n'est possible que si nous trouvons ou formulons pour les différentes conceptions des dénomina-teurs communs suffisamment larges pour contenir ľ objet des diverses sciences sociales. Quelles sont les conceptions pouvant se révéler utiles pour une science réellement empirique, voilà qui dépend de la nature des problèmes majeurs de recherches de ľ analyse économique actuelle. Comme toutes ces questions fondamentales de ľéconomie politique moderne se rapportent au comportement de groupes sociaux et de particuliers agissant en tant que membres ď entités sociales ď une structure déterminée, les conceptions fondamentales et les découvertes de la psychologie sociale et de ľ anthropologie culturelle devraient etre ď une grande utilityé pour ľéconomiste empirique.Après avoir esquissé les principales conceptions qui se sont révelées utiles àľ analyse des décisions de groupes et des rapports entre ľ individu et le groupe, ľ article se termine par ľnonce de la these qu'une Economic politique reellement empirique doit etre concue des Tabord commcar; part intégrante ď une science de ľ homme et de la culture. Une telle “humanisation” de ľéconomie politique aurait pour tǎche de placer ľ homme - tel qu'il est en réalité - au centre de ľ analyse économique et représenterait simultanément le point de départ de la solution de la tǎche urgente consistant à intégrer notre connaissance actuelle de ľ homme et de la culture.

Notes: It is now sometimes being said that the food supply is becoming so elastic that men need no longer be apprehensive lest population growth affect their welfare adversely. This assertion respecting the elasticity of the food supply lacks empirical validity so far as most parts of the world are concerned. It is true, however, that in some countries food is no longer the operative population-limiting factor, and food may cease to be such in yet other countries. It does not follow, however, that population-limiting factors will cease to be operative. The dynamics of culture, production, and consumption serve to change the character of these factors, but they do not remove them. For if one factor ceases to be operative, its place is necessarily taken by others. Population growth may not affect adversely man's consumption of food or some other item of living supposedly in highly elastic supply; but then it is quite likely, in many empirical situations, to make his consumption of some other items of living lower than it otherwise would have been.〈section xml:id="abs1-2"〉〈title type="main"〉ZUSAMMENFASSUNG Beschrdnkende Faktoren in der Bevölkerungstheorie. Es wird heute bisweilen gesagt, das Nahrungsmittelangebot sei im Begriffe so elastisch zu werden, dass die Menschheit nicht mehr befürchten müsse, ihr Wohlstand werde durch das Wachstum der Bevölkerung beeinträchtigt. Die Behauptung hinsichtlich der Elastizität des Nahrungsmittelangebots entbehrt jedoch der empirischen Gültigkeit mit Bezug auf den Grossteil der Erde. Es ist allerdings richtig, dass in einigen Ländern die Nahrungsmittel das Bevölkerungswachstum nicht mehr wirksam beschränken, und dies mag künftig auch in andern Ländern der Fall sein. Daraus folgt jedoch nicht, dass überhaupt keine solch beschränkenden Faktoren mehr wirksam sind. Die Dynamik der Zivilisation, der Produktion und des Konsums tragen dazu bei, den Charakter dieser Faktoren zu ändern, aber sie beseitigen sie nicht. Denn sobald ein Faktor nicht mehr wirksam ist, treten notwendigerweise andere an seine Stelle. Es mag sein, dass der individuelle Verbrauch an Nahrungsmitteln oder irgendeines andern Artikels mit vermutlich sehr elastischem Angebot durch eine wachsende Bevölkerung keine Beeinträchtigung erfährt; aber dann ist es in manchen konkreten Situationen wahrscheinlich, dass der Verbrauch anderer Artikel geringer sein wird als er es sonst wäre.〈section xml:id="abs1-3"〉〈title type="main"〉RÉSUMÉFacteurs limitatifs dans la théorie de la population. Certains prétendent aujourd'hui que ľ offre des denrées alimentaires serait en voie de devenir si élastique que les hommes n'auraient plus à craindre que ľ accroissement de la population ne porte préjudice à leur bien-etre. Cette affirmation sur ľélasticité de ľ offre de nourriture manque de toute justification empirique, tout au moins en ce qui concerne la plus grande partie de la terre. II est cependant exact que dans certains pays la nourriture n'est plus un facteur limitant en fait ľ accroissement de la population et il pourrait en etre de meme a ľ avenir dans ď autres pays. II ne s'ensuit pas toutefois que les facteurs limitatifs cesseront ď agir. Ľévolution de la civilisation, celle de la production et de la consommation contribuent à modifier le caractère de ces facteurs, mais elles ne les éliminent pas, car aussitǒt qu'un facteur n'agit plus, ď autres se substituent nécessairement à lui. Ľ accroissement de la population peut ne pas affecter la consommation individuelle de denrées alimentaires ou tout autre bien de consommation dont ľ offre est présumée très élastique; mais il est alors probable que dans maintes situations concrètes la consommation ď autres biens sera plus faible que ce ne serait autrement le cas.

Notes: In recent years there has been a great development of interest in the principles and the problems of rational decision-making and rational action. Economists, mathematicians, statisticians, logicians, engineers, and philosophers have all addressed their efforts to various phases of the general problem of rationality. This paper attempts a provisional synthesis of their basic results so far, in the form of a suggested preliminary definition of rationality that is sufficiently general to be applicable in all circumstances.ZUSAMMENFASSUNGBeitrag zu einer allgemeinen Definition des rationalen Handelns In den letzten Jahren ist ein zunehmendes Interesse an den Grundlagen und den Problemen der rationalen Entschlussfassung und rationalen Handelns festzustellen. Ökonomen, Mathematiker, Statistiker, Logiker, Ingenieure und Philosophen haben ihre Anstrengungen auf verschiedene Phasen des allgemeinen Problems des Rationalen gerichtet. Die vorliegende Studie macht den Versuch einer vorläufigen Synthese der bisherigen grundlegenden Ergebnisse in Form einer vorläufigen Definition des Rationalen, die genügend allgemein ist, um unter jeglichen Bedingungen anwendbar zu sein.RÉSUMÉRecherche ď une définition générate de ľ ction rationnelle. Durant ces dernières années, ľ intéret s'est fortement accru pour les principes et les problèmes relatifs à la décision rationnelle et àľ action rationnelle. Des économistes, des mathématiciens, des statisticiens, des logiciens, des ingénieurs et des philosophes ont concentrés leurs efforts sur les différentes phases du probléme général de la rationalité. La présente étude constitue un essai de synthèse provisoire des résultats fondamentaux obtenus jusqu'ici, sous la forme ď une définition préliminaire de la rationalité, par ailleurs suffisamment générale pour etre applicable dans toutes les circonstances.The general definition of rationality, to be usable for “practical” decisionmaking, must take full cognizance of each of the following characteristics of the “real” world, at least: the time-dimension of action and of the consequences of the action; the multitudinous side-effects of an action; the inevitable uncertainty of the “actor” in connection with the alternatives of action open to him and the consequences of each of these; the costs of information-gathering; the costs of performing logical operations; the variety of the value-criteria of different actors; the changes in the value-criteria of any given actor over time; and the “tastes” of the actor in relation to time-preference, risk-taking, logical processes, and the facing of uncertainty. The definition of rationality should specify the course of action which, in the light of all these factors, is the “best” one.The present suggested definition outlines a “rational” procedure for choosing one from among the set of all known possible actions, where the word “action” refers to a particular time-sequence of (a) acting (in the usual sense), (b) information-gathering, and (c) logical analysis. The procedure consists, roughly, of these four steps: (1) the specification of the set of known possible actions; (2) the determination, for each of the actions, and using all available relevant information, of the set of all possible consequences of that action and their respective probabilities; (3) the evaluation, in the light of the relevant value-criteria, of each of the possible consequences of each of the possible actions; and (4) the derivation from (3) of the “correct” action to be adopted. In carrying out these steps we employ a logical construction patterned after those of Carnap, Hempel and Oppenheim.For the sake of greater understandability, the definition is presented in two stages. The appendix to this paper contains a (grossly oversimplified) illustration of the application of the definition.Die allgemeine Definition des Rationalen - soil sie für praktische Entschlüsse verwendbar sein - muss zumindest folgende Charakteristika der “realen” Welt voll berücksichtigen: die Zeitdimension einer Handlung und der Konsequenzen der Handlung; die zahlreichen Nebenwirkungen einer Handlung; die unvermeidliche Ungewissheit des Handelnden mit Bezug auf die ihm offenstehenden alternativen Handlungen und auf die Folgen jeder dieser Handlungen; die Kosten zusätzlicher Information; die Kosten des logischen Vorgehens; die Mannigfaltigkeit der Wertkriterien der verschiedenen Handelnden; die Rnderungen in den Wertkriterien eines Handelnden im Zeitverlauf; die Einstellung des Handelnden hinsichtlich Zeitpräferenz, Risikobereitschaft, logische Verfahren und Ungewissheit. Die Definition des Rationalen sollte jenen Ablauf des Handelns aufzeigen, der im Lichte aller dieser Faktoren der “beste” ist.Die hier vorgeschlagene Definition skizziert ein “rationales Verfahren für die Wahl einer Handlung unter all den bekannten möglichen Handlungen, wobei das Wort “Handlung” sich auf eine besondere Zeitfolge von Handeln (im üblichen Sinn), Information und logischer Analyse bezieht. Das Verfahren besteht, grob gesprochen, in folgenden vier Schritten: I. Spezifikation der bekannten möglichen Handlungen; 2. Bestimmung aller möglichen Folgen und der Wahrscheinlichkeit dieser Folgen für jede der Handlungen, unter Verwendung aller verfügbaren relevanten Informationen; 3. Wertbestimmung jeder möglichen Folge von jeder der möglichen Handlungen auf Grund der relevanten Wertkriterien; und 4. Ableitung der “richtigen” vorzunehmenden Handlung aus 3. Bei der Ausführung dieser Schritte wird eine logische Konstruktion verwendet nach dem Muster von Carnap, Hempel und Oppenheim.Im Interesse einer grössern Verständlichkeit wird die Definition in zwei Stufen entwickelt. Der Anhang enthält eine (stark vereinfachte) Illustration über die Anwendung der Definition.Une définition générale de la rationalité - pour qu'elle soit utilisable pour des decisions pratiques - doit pour le moins tenir pleinement compte de chacune des caractéristiques suivantes du monde “réel”: la durée de ľ action et des conséquences de ľ action; la multitude des effets connexes ď une action; ľ inévitable incertitude de celui qui agit en ce qui concerne les alternatives qui s'offrent à lui et les conséquences de chacune de ces actions; le coǔt des informations complémentaires; le coǔt de ľ exécution logique des opérations; la diversite des criteres-valeur, suivant l'opinion de ceux qui agissent; les modifications dans le temps des critères-valeur ď un exécutant donné; la préférence que marque celui qui agit quant au temps, au risque, à la procédure logique et àľ incertitude. La définition de la rationalité devrait spécifier le déroulement de ľ action, qui, à la lumière de tous ces facteurs, apparaǐt comme “la meilleure”.La définition proposée ici esquisse une procédure rationnelle pour le choix ď une action parmi toutes les actions reconnues possibles; en ľ occurrence, le mot action se rapporte à une suite chronologique a) ď actions (au sens usuel), b) ď informations et c) ď analyses logiques. Grosso modo, le processus comprend les quatre étapes suivantes: I° la spécification des actions connues possibles; 2° la détermination pour chacune des actions, et en utilisant toutes les informations disponibles entrant en ligne de compte, de toutes les conséquences possibles et de leurs probabilityés respectives; 3oévaluation, à la lumière des critères-valeur entrant en ligne de compte, de chacune des conséquences possibles de chacune des actions possibles; et 4o la déduction de 3o de ľ action “correcte”à exécuter. En exposant ces étapes, ľ auteur utilise une construction logique calquée sur celles de Carnap, Hempel et Oppenheim.Afin ď etre mieux compréhensible, la définition est présentée en deux paliers. Ľ annexe à cet article contient un exemple (considérablement simplifyé) de ľ application de la définition.

Notes: Austrian business cycle policy was unconventional but rather successful in the last three decades and especially since the oil crisis. The unconventional conception was developed by trial and error, only ex post it got the name Austro-Keynesianism. Nevertheless it has a theoretical basis, a rather radical interpretation of KEYNES, which bases economic instability on a deep-rooted uncertainty of entrepreneurs. According to this interpretation economic policy tried to stabilize the data most important for entrepreneurial decisions, especially wage increase, exchange rates and investment promotion. This lightened the burden of the traditional instruments of stabilization policy. In addition these instruments were assigned differently: Exchange rate policy was primarily used to stabilize prices in the short run, incomes policy to equilibrate the current account in the medium and longer run, fiscal policy to stabilize employment. While the new assignation proved useful for stabilization policy, some structural problems remained unsolved.

Notes: The German author Heinrich Ludwig Lambert Gall (1794-1863) who is characterized as socialist by the authors of histories of economic thought proposed a policy for full employment, based on the multiplier-principle and public expenditures financed by taxes, since 1822. Not Rodbertus but Gall was the first one describing the multiplier scheme. The interpretation of Gall's publications shows his important ideas about interventionism similar to the modern theory of full employment and the activity of the state.

Notes: Alternativen aussenwirtsckafflicker Anpassung. Jahresgutachten 1968/69 des Sachverständigenrats zur Begutachtung der gesamtwirtschaftlichen Entwicklung.Bachmann, Hans: The External Relations of Less-Developed Countries.Bliefernich; Gryck; Pfeifer; Wagner: Aufgaben zur Matrizenrech-nung und linearen Optimierung.BÖs, Dieter: Öffentliche Aufträge in ÖsterreichBraeuer, Walter: Frankreichs wirtschaftliche und soziale Lage urn 1700.Buhr, Walter: Dualvariable als Kriterien unternehmerischer PlanungCrockett, Jean: Consumer Expenditures and Incomes in GreeceCurrie, Laughlin: Obstacles to Development.Einzig, Paul: Foreign Exchange Crisis. An Essay in Economic Pathology.Exo, Reinhold: Die Entwicklung der sozialen und ökonomischen Struktur der Ersparnisbildung in der Bundesrepublik DeutschlandFeinstein, C. H. (Ed.): Socialism, Capitalism and Economic Growth: Essays Presented to Maurice Dobb. Forecasting on a Scientific Basis.Fromm, Gary, and Taubman, Paul: Policy Simulations with an Econometric Model.Gabriel, Peter B.: The International Transfer of Corporate Skills: Management Contracts in Less Developed Countries.Hutchison, T. W. : Economics and Economic Policy in Britain 1946-66.Caves, Richard E. et al.: Britain's Economic Prospects.Johnson, Harry G. (Ed.): Economic Nationalism in Old and Mew States.Jungenfelt, K. G. : Löneandelen och den ekonomiska utvecklingen. Les stratégies d'entreprise.Maass, GÜnther: Die Rolle des Pfund Sterlings in der Weltwirtschaft seit dem Zweiten WeltkriegMcKean, Roland N. (Ed.): Issues in Defense Economics—A Conference.Myrdal, Gunnar: Asian Drama.Pressburger, S.: Österreichische NotenbankSaville, Lloyd: Regional Development in Italy.Schelbert-Syfrig, H.: Empirische Untersuchungen über die Geldnachfrage in der Schweiz.Steiner, Helmut: Soziale Struktuweränderungen im modernen Kapitalismus.Stoleru, L. : L'équilibre et la croissance économiques.Theil, Henri: Applied Economic ForecastingTimm, H., und Haller, H. (Hrsg.): Beiträge zur Theorie der öffentlichen AusgabenTriantis, S. G.: Cyclical Changes in Trade Balances of Countries Exporting Primary Products 1927-33.Walter, Ingo: The European Common Market.Westphal, Uwe: Die importierte Inflation beifestem und flexiblem WechselkursZaleski, EugÈne: Planning Reforms in the Soviet Union, 1962-6.ZohlnhÖfer, Werner: Wettbewerbspolitik im Oligopol - Erfahrungen der amerikanischen Antitrustpolitik

Notes: In this paper on power relations the author assumes that each participant (A, B) behaves rationally, aims at an increase of his utility. The assumption of the purely instrumental character of power constitutes a second important premise: power is supposed to be a means, not an end in itself.When A tries to compel B to do something he wouldn't otherwise have done by threatening retaliation against any disobedience of B, A is interested in the credibility of his threat indeed. However A has usually no incentive actually to carry out the threat in case of resistance by B. Moreover the realization of the threat very often causes considerable costs to the power-holder. Because of A's dilemma B stands a good chance of resisting the pretension of A without being punished. Finally the author analyses what counter-moves A can make.In another form of influence—often called ‘manipulation’—B doesn't notice at all that his goals conflict with those of A. A does not make explicit the ends he is striving for. As long as the assumption of rational behaviour is retained, this kind of influence can only occur in case of uncertainty—taste structure of A and B assumed constant.

Notes: This paper develops a conceptual framework for the systematic analysis of inter-community spillovers and their implications for local expenditure-investment decisions. Spillovers are distinguished on the basis of the effects they have upon the rate of exchange between current goods for private consumption and publicly provided goods. The mechanisms of spillovers—economic interaction, fiscal inter-dependence, and migration—and the concept of community are examined in this context. A diagrammatic analysis is used to demonstrate the influence of spill-overs on the decision making unit's allocation of resources. Methodological issues and problems involved in estimating spillover magnitudes are presented. A case study provides numerical counterparts for the theoretical quantities of the analysis. While emphasis is on publicly provided education in the United States, the framework and methodology should be applicable to other local governments and their services.

Notes: Adelman, Irma, and Thorbecke, Erik (Eds.): The Theory and Design of Economic Development.Ben-Shahar, Haim: Interest Rates and the Cost of Capital in Israel (Publications of the List Society, Nr.44).Frey, RenÉ L.: Struktunvandlungen der israelischen Volkswirtschaft — global und regional 1948–1975 (Publications of the List Society, No. 39)Pirker, Theo: Die Histadrut, Gewerkschaftsprobleme in Israel (Publications of the List Society, No.45).Broekmeijer, M. W.: Fiction and Truth about ‘The Decade of Development'. Leyden 1966.Cameron, Rondo (with the collaboration of Olga Crisp, Hugh T. Patrick, and Richard Tilly): Banking in the Early Stages of Industrialization. New York, London, Toronto 1967.Clement, M. O., Pfister, Richard L., and Rothwell, Kenneth J.: Theoretical Issues in International Economics. Boston 1967.Court, W.H.B.: British Economic History 1870–1914– ommentary and Documents. Cambridge 1965.Currie, Lauchlin: Accelerating Development: The Necessity and the Means. New York 1966.Demmler, Horst: Verkehrspolitik in der Sowjetzone Deutschlands (Veroffentlichungen des Forschungsinstituts fur Wirtschaftspolitik an der Universitat Mainz, Bd. 21) Heidelberg 1967.Denison, Edward F., assisted by Jean-Pierre Poullier: Why Growth Rates Differ. Postwar Experience in Nine Western Countries. Washington D.C. 1967Ehrlicher, Werner; Esenwein-Rothe, Ingeborg; Jürgensen, Harald und Rose, Klaus (Hrsg.): Kompendium der Volkswirtschaftslehre, Bd. 1. Gottingen 1967.Field, Arthur J.: Urbanization and Work in Modernizing Societies. Detroit 1967.Henderson, J. M., et Quandt, R. E.: MicroÉconomie — formulation mathÉmatique ÉlÉmentaire (traduction franqaise de D. Godard et F. Eldin). Paris 1967.Horowitz, David: Hemispheres North and South conomic disparity among nations. Baltimore 1966Johansen, Leif: Public Economics. Amsterdam 1965.Johnson, Harry G.: Essays in Monetary Economics. London 1967.Kirzner, Israel M.: An Essay on Capital. New York 1967.Klein, Rudolf C.: Marktwirtschaft und Finanzsystem. Grundansichten uber das Rationale Finanzsystem einer funktionsfahigen Marktwirtschaft (Beitrage zur Erforschung der wirtschaftlichen Entwicklung, Heft 10). Stuttgart 1966. Dokumente der Weltrevolution. Bd. I: Die frühen Sozialisten, hrsg. von Frits Kool und Werner Krause. Bd. II: Die Arbeiterdemokratie oder Parteidiktatur, hrsg. von Frits Kool und Erwin Oberländer. Olten 1967.Lehbert, Berndt: Die interindustrielle und interregional Verflechtung der Wirtschaft des Landes Schleswig-Holstein– Versuch der Erstellung einer Input-Output-Tabelle fur ein einzelnes Bundesland (Forschungsberichte des Instituts fur Weltwirtschaft an der Universitat Kiel, Bd. 81). Tubingen 1967.Lewes, F. M. M.: Statistics of the British Economy. London 1967.Locke, John: Two Tracts on Government. Edited with an Introduction, Notes and Translation by Philip Abrams. Cambridge 1967.Lucas, J. R.: The Principles of Politics. London, Oxford 1966.Macbean, Alasdair I.: Export Instability and Economic Development. London 1966.Montaner, Antonio (Hrsg.): Geschichte der Volkswirtschaftslehre Koln und Berlin 1967.Müller-Ohlsen, Lotte: Wirtschaftsplanung und Wirtschaftswachstum in Frankreich (Kieler Studien, Nr. 80). Tiibingen 1967.Pollak, Helga: Wachstumsbedingte Verbrauchsstrukturänderungen und einige ihrer Konsequenzen für die Verbrauchsbesteuerung (Frankfurter Wirtschafts-und Sozialwissenschaftliche Studien, Heft 15). Berlin 1966.Recktenwald, Horst Claus: Steuerüberwälzungslehre. Theoretische und empirische Verteilung von Abgaben und Kosten. Zweite, uberarbeitete und erganzte Auflage (Volkswirtschaftliche Schriften, Heft 35). Berlin 1966.Riese, Hajo: Die Entwicklung des Bedarfs an Hochschulabsolventen in der Bundesrepublik Deutschland. Mit einem Geleitwort des Vorsitzenden des Wissenschaftsrates Hans Leussink und einer Einleitung von Gottfried Bombach, Basel. Wiesbaden 1967Rose, Arnold: The Power Structure Political Process in American Society. New York 1967.Sawyer, Carole A.: Communist Trade with Developing Countries: 1955–1965 (Praeger Special Studies in International Economics and Development). New York, Washington, London 1966.Scherf, H.: Untersuchungen zur Theorie der Inflation (Kieler Studien, Nr.82).Tiibingen 1967.Schmitt-Rink, Gerhard: Konsum-Dynamik. Die qualitative Expansion des privaten Verbrauchs. Gottingen 1967.Skolnikoff, Eugene: Science, Technology, and American Foreign Policy. Cambridge, Mass., 1967.Sosa-Rodriguez, JosÉ: Linear Programming– A Management Tool. Genkve 1966.Timmermann, Vincenz: Probleme und Möglichkeiten der Entwicklungs-planungWeiss, Shirley F., Smith, John E., Kaiser, Edward J., Kenney, Kenneth B.: Residential Developer DecisionsWidmaier, Hans peter: Bildung und Wirtschaftswachstum. Eine Modellstudie zur Bildungsplanung im Auftrag des Kultusministeriums Baden-Württemberg. Mit einer Einführung von Kultusminister Professor Hahn. Villingen 1966.

Notes: Among economists there has generally been a lack of agreement as to the specific relation between exports and economic growth. The hypothesis presented here is that there is a causal relationship between the two, that this relationship is one of interdependence rather than of unilateral causation, but that it is mainly a rise in exports that stimulates an increase in aggregate economic growth rather than vice versa.There are strong logical and empirical grounds supporting the hypothesis. Rising exports provide the wherewithal for increased imports, so important to economic growth. Emphasis on exports helps concentrate investment in the more efficient sectors of the economy, thus raising productivity. Efficiency is aided further by production for international markets since this permits greater economies of scale and forces firms to hold down their costs in order to remain competitive in international markets. In addition, profitable export industries stimulate additional investment, encourage an increased flow of new technology and managerrial skills, and stimulate increased consumption.The hypothesis was also tested statistically. Multiple correlations and simple least-squares regression equations were calculated for a group of 50 countries using data on average rates of growth of per capita real G. N. P., of exports, and of earnings on current account during 1953-63. The results showed: 1. that the most significant correlation was between exports and G. N. P.; 2. that for every 2 1/2per cent increase in exports, per capita real G. N. P. showed a rise of 1 per cent; and 3. that this last relationship had a high degree of statistical reliability.

Notes: As a result of inadequacies in the traditional approach to location problems a new body of thought has emerged in recent years which centers on the notion of development poles (po̧les de croissance). This concept was first put forth systematically by F. PERROUX, though it now has come into use in many countries in both theoretical discussions and public policy programs.-The present article examines the often ambiguous uses which have been made of development pole theory and evaluates some of its principal strengths and weaknesses as a tool of economic analysis. Attention also is given to the related concepts of economic space and economic domination.Among the problems of development pole theory are its emphasis upon big industrial undertakings, its relationship to external economies of agglomeration, its relationship to public policy goals, and its need for semantic clarification. Nevertheless, the theory remains potentially valuable for conditional analysis of the process of regional development; moreover, it may be expected that French regional planning experience will provide data in the near future for refining the approach to rational spatial resource allocation to which French economists have so largely contributed.

Notes: The relationships between international trade and short-term capital placements are shown to be more numerous and complex than is often recognized in the literature. At first instance the trade balance determines a flow of private capital but these flows do not represent movements to equilibrium positions. At least partial repatriation of such flows will be desired by traders but the speed of this repatriation is constrained by the terms on which trade finance has been extended. With full repatriation, a ‘permanent’ change in the trade balance would not lead to a permanent change in private capital flows, but rather to a change in the net stock of short-term assets held abroad due to these constraints on instantaneous portfolio adjustment by traders. The size of the change in this stock is shown to depend on the terms on which trade is financed as well as on the size of the change in the trade balance. The time path of the permanent outward shift is dependent upon these terms as well.The effects just summarized depend upon a divergence between traders’ actual and desired portfolio allocations because of temporary constraints on portfolio adjustment. Longer run changes in the trade balance and absolute volume of trade will affect traders’ convenience and hedging returns from holdings of foreign balances and hence may affect their desired portfolio allocations. While these effects could conceptually go in cither direction, the secular expansion of trade should level to a short-term capital inflow into the United States because of the international role of the dollar.

Notes: This article presents a mathematical model for monopolistic price competition among firms with differentiated products. The conditions which distinguish the Chamberlinian analysis from that of Edgeworth are examined. Product differentiation is not sufficient to guarantee the existence of a stable non-cooperative equilibrium point in terms of price. The relationship among the degree of product variation, amount of capacity, and stability are examined. Explicit formulas are obtained for the non-cooperative equilibrium and the capacity conditions for its existence. The behavior of the model as the degree of differentiation approaches zero and as competition becomes large is examined. This connects the analysis of oligopoly with the analysis of pure competition.

Notes: Decision theory is applied to a situation of conflict which a mother of two actually faced in an isolated home in the American Rocky Mountains. While the father was away on a trip which he thought to last seven days, the mother was bitten by a poisonous snake. She thought the bite to be fatal. To spare her two children, aged two months and two years, the agony of death by starvation, she decided to kill them.The mother faced a decision problem under uncertainty. A theoretical analysis of the situation shows which rational decision would have been optimal. However, a rational decision derived in an objective fashion is not free of subjective elements. Assigning utility measures to the possible types of death of the children, suppositions as to nature's strategies, and the choice of one of four established decision criteria are subjective.The criteria of Wald and Savage picture nature as a hostile opponent wanting to inflict greatest possible injury. The difference between them consists merely in the valuation of the disutility of death. Rational behaviour of the mother calls for selecting that strategy which promises the best of the worst possible outcomes.The Hurwicz criterion can accommodate all variations of nature's attitude, from malignant to benignant. According to the mother's optimism a distribution is supposed over nature's most favourable and unfavourable strategies. The probabilities of all other possible strategies are assumed to be zero.The criterion of Laplace assumes an indifferent nature. All possible strategies of nature are equally likely to eventuate.Three strategies are open to the mother, leave both children alive, kill one child, kill both children. Depending on the utility valuations the mother attaches to the different possible types of death, one of these strategies is optimal. If a decision is arrived by the Wald or Savage criterion a mixed strategy is superior to a pure one. The possibility of the childrens survival through the arrival of a stranger only affects the choice of the mother's strategy if she uses the Laplace criterion.

Notes: Atkinson, Thomas R., and Simpson, Elizabeth T.: Trends in Corporate Bond Quality.Bohnet, Armin: Zur Theorie der personellen EinkotntnensverteilungBosch, Alfred, und Veit, Reinhold : Theorie der Geldpolitik.Brinkmann, Gerhard: Berufsausbildung und Arbeitseinkommen.Buckley, Helen, and Tihanyi, Eva : Canadian Policies for Rural Adjustment.Caves, Richard E., and Johnson, Harry G. (Eds.): Readings in International Economics.Deane, P., and Cole, W. A.: British Economic Growth, 1688-1959.Desai, V. R. Mutalik: Social Aspects of Savings.Diegues jr., Manual, and Wood, Bryce (Eds.): Social Science in Latin AmericaEhrlicher, Werner; Esenwein-Rothe, Ingeborg; JÜrgensen, Harald, und Rose, Klaus (Hrsg.): Kompendium der VolkswirtsckaftslehreEisermann, Gottfried (Hrsg.): Die gegenwärtige Situation der SoziologieFeiwel, George R.: The Soviet Quest for Economic Efficiency.Grand-Jean, Paul: Guerres, Fluctuations et Croissance.Hackett, John and Anne-Marie: The British Economy: Problems and Prospects.Harborth, Hans-JÜrgen : Neue Industriezentren an der weltwirtschaftlichen PeripherieHazelwood, Arthur: African Integration and DisintegrationHeller, Walter W.: New Dimensions of Political Economy.Horvat, Branko : Towards a Theory of Planned Economy.Šik, Ota: K problematice socialistických zbožnich vztahûStÁdnik, Miloš: O koncepci národniho dûchodu v Mad'arskuIdem, Několik statistických i nestatistických pohledû na hospodářské reformy v JugosláviiIdem, The Conception of National Income in Czechoslovakia.JÜrgensen, Harald (Hrsg.): Entzifferung - Bevölkerung als Gesellschaft in Raum und zeitKaldor, Nicholas: Strategic Factors in Economic Development.Kirby, E. Stuart: Economic Development in East Asia.Klinov-Malul, Ruth: The Profitability of Investment in Education in Israel.Nove, Alec und Newth, I. A.: The Soviet Middle East.Ohlin, Bertil: Interregional and International TradePeacock, A. T., and Wiseman, J.: The Growth of Public Expenditure in the United Kingdom.Pickering, J. F.: Resale Price Maintenance in Practice.Preiser, Erich : Wirtschaftspolitik heuteSchachtschabel, Hans G.: Wirtschqftspolitische Konzeptionen.Shaffer, Harry G. (Hrsg.): The Soviet System in Theory and PracticeSimha, S. L. N.: Essays on Finance.Snider, Delbert A.: Introduction to International EconomicsTrappeniers, Felix : Les Avantages comparatifs dans le Marché commun.Youngson, A. J.: Overhead Capital.Zauberman, A.: Aspects of Planometrics

Notes: Balopoulos, E. T.: Fiscal Policy Models of the British Economy. Amsterdam 1967.Beeby, C. E.: The Quality of Education in Developing Countries. Cambridge, Mass., 1966.Boot, John C. G.: Mathematical Reasoning in Economics and Management Science: Twelve Topics. Englewood Cliffs, N.J., 1967.Campolongo, Alberto: Incomes Policy. Milano 1966.Chandrasekhar, S.: American Aid and India's Economic Development. New York 1965.Chayanov, A. V.: The Theory of Peasant Economy. Homewood, Ill., 1966.Denizet, Jean: Monnaie et Financement. Essai de thÉorie dans un cadre de comptabilitÉÉconomique. PrÉface de ValÉry Giscard d'Estaing (SÉrie Statistiques et Programmes Economiques, vol. 12). Collection publiÉe sous la direction de Henri Hierche. Paris 1967. Dunod. 284 S. NF 35.-Dietze, Constantin von: Grundzüge der Agrarpolitik. Hamburg und Berlin 1967.Donnithorne, Audrey: China's Economic System. London 1967.Dudler, Hermann-Josef: Diskont- und Terminkurs-Politik (Veröffentlichungen des Instituts für Bankwirtschaft und Bankrecht an der Universität Köln. Vol. XVII). Frankfurt 1966.Eisner, Robert: Some Factors in Growth Reconsidered (Lecture Series, No. 21). Athens 1966.Feldstein, Martin S.: Economic Analysis for Health Service Efficiency. Econometric Studies of the British National Health Service. North Holland Publishing Company. Amsterdam 1967.Fox, Karl A.; Sengupta, Jati K.; Thorbecke, Erik: The Theory of Quantitative Economic Policy with Applications to Economic Growth and Stabilization (Studies in Mathematical and Managerial Economics, Vol. 5). Amsterdam 1966.Glaser, William A., and Sills David L. (Eds.): The Government of Associations. Totowa, N.J., 1966.Guttentag, Jack M., and Herman, Edward S.: Banking Structure and Performance. New York 1967.Hedtkamp, Günter: Planification in Frankreich, Grundlagen, Technik und Erfahrungen (FIW-Schriftenreihe, Heft 31). Köln-Berlin Bonn-München 1966.Hildebrand, George H.: Poverty, Income Maintenance, and the Negative Income Tax (Paperback No. 1). Ithaca 1967.Husain, I. Z.: Economic Factors in Economic Growth. Bombay 1967.Krengel, Rolf und Mertens, Dieter: Fixed Capital Stock and future Investment Requirements in Greek Manufacturing. (Research Monograph Series.) Athens 1966.Lacour, Claude: Revenus agricoles et croissances rÉgionales en France (Travaux de comptabilitÉÉconomique rÉgionale. Collection de l'Institut d'Économie rÉgionale du Sud-Ouest). Bordeaux 1966.Lerner, Daniel, and Schramm, Wilbur (Eds.): Communication and Change in the Developing Countries. Honolulu 1967.Maghlup, Fritz: The Need for Monetary Reserves. (Reprints in International Finance, Princeton University.)Mauersberg, Hans: Deutsche Industrien im Zeitgeschehen eines Jahrhunderts. Stuttgart 1966.MossÉ, Robert: Les problèmes monÉtaires internationaux. Paris 1967.Müller-Gröling, Hubertus: Maximierung des sozialen Gesamtnutzens und Einkommensgleichheit. Köln, Berlin, Bonn, München 1965.Myers, Charles A. (Ed.): The Impact of Computers on Management. The M.I.T. Press. Cambridge, Mass., and London 1967.O.E.C.D.: Emigrant Workers Returning to their Home Country. International Management Seminar, Athens 18th–21st October 1966. Final Report and Supplement. Paris 1967. Osteuropa-Handbuch: Sowjetunion, Das Wirtschaftssystem. In Zusammenarbeit mit zahlreichen Fachgelehrten herausgegeben von Werner Markert (Arbeitsgemeinschaft für Osteuropaforschung). Köln, Graz 1965. Osteuropa-Handbuch: Sowjetunion, Verträge und Abkommen. Verzeichnis der Quellen und Nachweise 1917–1962. Unter Mitwirkung von Jörg K. Hoensch und Helmut König herausgegeben von Werner Markert und Dietrich Geyer (Arbeitsgemeinschaft für Osteuropaforschung). Köln Graz 1967.Peffekoven, Rolf: Zölle und Lohnquote. Berlin 1966.Phelps, Edmund S.: Golden Rules of Economic Growth. Studies of Efficient and Optimal Investment. (Incl. Bibliography on the Golden Rule of Accumulation 1961–65.) Amsterdam 1967.Rudra, Ashok: Relative Rates of Growth — Agriculture and Industry. University of Bombay, 1967.Shannon, Ian: Gold and the American Balance of Payments. Chicago 1966.Sohmen, Egon: The Theory of Forward Exchange (Princeton Studies in International Finance, No. 17). Princeton 1966.Vogel, RenÉ: La politique commerciale suisse. Montreux 1966.Warner, Lloyd W. et al.: The Emergent American Society — Large-Scale Organizations (Volume I). New Haven and London 1967.Yotopoulos, Pan A.: Economic Analysis and Economic Policy (Training Seminar). Center of Planning and Economic Research.

Notes: The economic development of underdeveloped regions involves essentially the same question as that applicable to the development of any region or country using a private enterprise system: how and to what extent should government alter the market process? The belief that governments of underdeveloped regions should not be oblivious to the growth process is well accepted, relating broadly to the argument that if the private sector could have stimulated growth without help from government, it would have done so already. Our analysis shows that the growth theories which seek to bring government into the picture are tending to violate classical economic principles. Moreover, they often ignore the differences that exist between regions. Even the pump priming basis for developing depressed areas—which emphasizes the agglomerating economies that result from initial development—is revealed to lack proper roots in fundamental theory. This paper finally contends that the main role of government in economic development is to facilitate economic activity, such as by eliminating predatory business practices, simplifying the tax base, establishing institutions conducive to entrepreneurship, and perhaps even influencing the saving-income proportions of the region.

Notes: The price- and income-elasticities of imports and primarily rates of growth and relative price-level changes in the countries involved are the most important determinants of the external situation of a country. Growth and price trends are at the same time important target variables of internal policy. Balance on current account is only achievable if these determinants are related in a certain way both abroad and at home. If the proportions required are not to be realized, conflicts arise between external and internal balance. International co-ordination of growth policies may diminish the danger of such conflicts situations. When a larger number of economic objectives can be managed simultaneously there is also a bigger number of constellations which are compatible with external balance. If on the other hand conditions of growth are very different it is usually not possible to bring in accordance internal and external goals.

Notes: In the social sciences specialization is just as unavoidable as in other branches of science but requires a counterweight in the form of collaboration between economics, sociology and political science, and between all these and history. Each social structure, a shop, an office, a club, has at the same time economic, political and sociological significance, and is also rooted in the past. Economic activity especially is embedded in non-economic contexts not only in primitive or proto-capitalistic societies - as Karl Polanyi has stated - but always and everywhere, and most economic activities are enveloped by economic contexts.Therefore, if one wants to understand the full meaning of social reality one has to look at it from the point of view of all the social sciences. Today this is often done in regional studies and in city planning. But this spotty kind of interdisciplinary collaboration is insufficient, especially because it does not lay the groundwork for an education in integrated social science. Such science would systematically study all the typical processes, in whatever part of society, which the individual disciplines analyze each from its own viewpoint. This unified kind of social science will exist only when in the scholarly world synthesis is recognized as an endeavor just as valuable and meritorious as specialized research. Recognition for synthesis in social science will also bring two practical problems closer to solution: How good teaching can receive more credit, since the synthesizing approach is essential for the teacher, and how we can loosen up the negative attitude which many of our students display toward scholarly effort because they feel that it is too hyper-specialized to have much relevance to life problems.

Notes: This paper deals with some problems of long-term planning in developed countries. It is suggested that planning on the industry level can best be applied in national economies that are more or less closed to foreign influences. While information on interindustry relationships can be utilized to derive a feasible pattern of production associated with a growth target in a closed economy, disappointed expectations in regard to exports and unforeseen changes in imports will give rise to discrepancies between plans and realization if the foreign sector is of importance.Moreover, in participating in the international trade network, governments forego the use of a number of policy instruments that could be employed in a closed economy to ensure the fulfilment of plans on the national economy, industry, and firm level. Accordingly, since governments can hardly guarantee the correctness of the forecasts, and entrepreneurs look beyond national frontiers for markets, doubts arise about the desirability of government intervention since ultimately the enterprises’ profits will be affected.On the other hand, long-term planning has a useful function in the public and the semi-public sectors. It would ensure rationality and consistency in decisions on the public sector where prices do not provide a yardstick for choosing among alternative uses of resources. Further, a consicious long-term policy would be desirable in the semi-public sectors - agriculture, transport and energy — where ad hoc interventions, taken often in response to special interests, give rise to inefficiencies.

Notes: By the classical economic theory output is considered as a result of exchanges. Market prices and produced quantities are determined by the point of intersection between offer and demand curves, both varying with shifts in prices; equilibrium is reached without any optimality criterion of business behaviour. In reality, however, output depends on business behaviour; business decisions are based upon such a criterion. The level of demand is set up by prices and income. The marginal utility theory of money makes it possible, to refer the structure of prices to the structure of income.The present paper deals with some of the criteria of optimal business behaviour:(1) Maximization of output. The application of this criterion under the assumption of given prices yields results, partly rational, partly logical but non-justified under economic aspects, partly simply paradoxical.(2) Minimization of costs (maximization of benefits). This criterion—classical when problems of social welfare are considered—seems in this context to lead to paradoxical results, too.(3) Profit-Maximization. In the limited case of perfect monopoly this criterion may be malthusianistic; in oligopoly cases it might be, however, that technical and economic progress is stimulated by its application on business decisions.(4) The social benefit criterion refers to the theory of consumers’ surplus; it may be applied under increasing benefits.

Notes: Since the early 1950's most of the European economies have been growing at an unprecedented high rate associated with a situation of full employment. These two phenomena are at the root of the profound changes which are occurring in European agriculture and which have led on the one hand to a production capacity greater than the potential increase in effective demand for food and on the other hand to rapidly growing income aspirations by farmers.Policies applied so far have been applied uniformly to the entire agricultural sector and have thus been unable to provide satisfactory solutions to these problems. It is necessary to develop more selective policies which should be adapted to the particular problems of each broad group of farmers: (a) policies for those whose economic future in agriculture is doubtful and who should be assisted to transfer to other occupations or to retire; (b) policies for those whose economic future in agriculture might be secured if their size of business was increased and their management improved; and (c) policies for the ‘commercial’ sector of agriculture. The answer to agriculture's problems could be found in the combination of a structural and of a price policy.

Notes: This paper was concerned with giving a fuller discussion of the factor-price equalisation theorem in a three-commodity two-factor model and with giving a different ‘proof of it. The Appendix considered a more tentative issue: the factor-price equalisation theorem in a three-factor two-commodity model. It was suggested that in certain conditions it would be seen that factor-price equalisation was possible.

Notes: This paper examines the problem of selection of variables which are to be considered important when theories or hypotheses concerning social and economic behavior are formulated. It is argued that while considerable precision is utilized in deriving conclusions from economic models, the degree of precision used in selecting the variables included in the model is very much less.The problems involved in constructing a theory of hypothesis building are discussed. The meaning of analyses where ‘casual empiricism’ has been used to select decision variables is examined and criticized. Possible approaches to the problem of interpretation of analytical results in such cases are outlined.The paper does not contain a proposal for a theory of theory construction, but merely calls attention to some of the problems involved in formulation of hypotheses in positive social sciences such as economics.

Notes: Bagiotti, Tullio. Il ProfittoBaumol, William J. Welfare Economics and the Theory of the State. With a New Introduction: Welfare and the State Revisited.Boarman, Patrick M. Germanys Economic Dilemma: Inflation and the Balance of Payments.Boot, John C. G. Quadratic ProgrammingBrennan, Michael J. (Ed.). Patterns of Market BehaviorCarr, Charles R., and Home, Charles W. Quantitative Decision Procedures in Management and Economics. de Ferron, Olivier. Le problème des transports et le Marché communGoode, Richard. The Individual Income TaxHicks, Ursula K. Development Finance: Planning and Control.Hildebrand, George H., and Liu, Ta-chung. Manufacturing Production Functions in the United States, 1957Horowitz, Irving Louis (Ed.). The New SociologyKaser, Michael. ComeconKatzarov, Konstantin. The Theory of Nationalization.Kneese, Allen V. The Economics of Regional Water Quality Management.Myint, Hla. The Economics of the Developing Countries.Pautard, Jean. Les disparités régionales dans la croissance de l'agriculture françaisePearce, I. F. A Contribution to Demand Analysts.Rae, John. Life of Adam Smith.Robinson, E. A. G. (Ed.). Problems in Economic Development.von Rogister, Maximilian. Indien ist anders.Roskamp, Karl W. Capital Formation in West GermanyiStammer, Otto (Hrsg.). Max Weber und die Soziologie heute.Whitman, Marina von Neumann. Government Risk-Sharing in Foreign Investment.

Notes: The object of this paper is two-fold. First, an attempt has been made to show that under certain specific circumstances a livestock production system can be raised to a higher level of output by slaughtering some of the animals. Second, it has been then shown that given a free say to exchange and clearly defined preference scales of the consuming coalitions, this policy is strongly Pareto-wise optimal. Finally the attention is drawn to the relevance of the policy to the problem of scarcity of food in India. It is suggested that India could do well by slaughtering of its animal population.

Notes: This paper reviews the methods and findings of several studies that have been undertaken recently to estimate the interest sensitivity of short-term capital movements. The paper concentrates on the studies of Philip Bell, Peter Kenen, and Jerome Stein, with references to studies by Benjamin Cohen and Robert Gemmill.From the standpoint of balance-of-payments policy, the question of the interest elasticity of short-term capital movements takes on considerable importance. However, the studies conducted thus far do not give a clear-cut answer to this question. Bell finds that, in general, interest rates have only a minor effect on capital flows, whereas Kenen finds them to be highly significant. Stein's work points out drawbacks to the Bell and Kenen studies and proposes remedies.

Notes: Without entering the controversy on the importance of human capital in relation to technological progress, an economist faces a challenging technical problem: how to measure or quantify in monetary terms the significant value of specific skills, both for the individual and for the social entity. This paper attempts to contribute to this objective on two levels: one is to develop an acceptable methodology for evaluation of the incremental contribution of skills; secondly, the paper summarizes preliminary results of a case study on the transfer of skills acquired during military training to the civilian sector in Japan during the post-World War II period.Implications of the study suggest a critical review of by-product contributions of military expenditures. In spite of pejorative evaluations of the military establishment on moral grounds by a segment of public opinion, military training remains a prevasive mechanism for mass development of skills in all nations, particularly in less-developed and socialist countries.The potentiality of tapping the experience and the know-how of military establishments for development of skills transferable for application in a progressively technical society opens opportunity for further scientific exploration and operational exploitation.

Notes: Much of the recent literature on the adequacy of international reserves states that there should be enough reserves in the world so that countries can avoid undesirable and painful adjustment to balance of payments disequilibrium. But this undesirable adjustment, namely deflation and unemployment, is the only adjustment mechanism that exists under a system of fixed exchange rates. It follows from this that no amount of international reserves, short of infinity, can ever be enough. Furthermore, the existing system is one in which there is a built-in bias toward disequilibrium. If countries differ in their willingness to permit some inflation in exchange for full or nearly full employment, the inflation prone countries will tend to incur deficits. They will avoid adjustment—that is, domestic contraction, as long as they have any reserves above what they consider to be minimally acceptable levels. The inflation-avoiding countries, which will tend to be in surplus, will prefer to accumulate reserves rather than permit inflation. In such a world there is likely always to be a ‘shortage' of reserves, whatever the actual level of reserves may be.

Notes: Having defined the terms of trade, the author deals with the restrictions resulting from their use, for instance, in their statistical application, and, he gives a survey of the theories on the subject.He goes on to examine the various views on the terms of trade between primary commodities and manufactures and on those between developed and developing countries. However, generalizations on the matter are difficult. The widely di-vergent opinions are due in great part to uncomplete and defective statistical material. The trend of the terms of trade between primary commodities and manufactures and between developed and developing countries (which is not necessary the same) has but little significance. It is therefore to be regretted that economic policy recommendations are based on the assumption that the terms of trade will deteriorate. This is in fact what happened in numerous papers prepared for the two UNCTAD-conferences. There is no relationship between the terms of trade and economic development.The author concludes that the use of the terms of trade is to be avoided, except, in the last resort, for the study of a specified country and for a period not longer than some years. Moreover, an appropriate comment, for instance, on the productivity trends and the quantities traded, is necessary. The developing countries have, therefore, no interest in giving priority to the terms of trade.

Notes: The nature of a statistical relationship between wage changes and unemployment rates or its very existence in the United States has stimulated studies with contradictory conclusions. This study concludes that (1) a classic ‘Phillips curve’ can be constructed for the U. S. in the postwar period; (2) recent U. S. inflation has reflected the effects of a ‘Phillips curve’ analysis, more so than only secular updrift; (3) a single variable approach (utilizing the skilled labor force unemployment rate) is more successful in explaining wage and price changes during this period than the multiple variable models which are contradictory in theoretical specification and anyway have not performed successfully in recent years; and (4) that the U. S.‘Phillips curve’ has shifted to the left during the 1960's, making the economy less inflation-prone than has been previously thought.

Notes: In The Structure of Scientific Revolutions T. S. Kuhn argues that the history of the natural sciences has been marked by periodic crises, when the dominant ‘paradigm’ is challenged, rejected, and displaced by a new paradigm. Since the paradigm's functions are both regulative and cognitive, this process has sociological as well as purely epistcmological aspects.With the exception of the Keynesian revolution of the 1930's, there have been no phases of paradigm change in economics quite like those in the natural sciences. This is due mainly to the nature of economic paradigms (or ‘basic’ theories) which are less precise and less liable to falsification. ‘Critical anomalies’ and ‘crucial experiments’ do not arise in economics, as in the natural sciences; and yet the process of paradigm change may serve as an ideal type, which can be used to clarify the interrelationships between the terminological, conceptual, personal, and professional elements involved in the development of economic ideas, especially in such episodes as the emergence of classical (Ricardian) economics, the Methodenslreit, or the marginal utility revolution.

Notes: After World War II the economic, technological and social conditions of modern society have changed fundamentally. These evolutionary changes not only influenced the range of the activity of the State, i. e. the empirical and theoretical object of public finance since its foundation as a branch of Political Economy; it also shows a strong effect on the basic parts of modern public finance, on the normative and positive theory of public economy and on the approach of decision making process in the public sector. On the other hand, new methods and perception of this field essentially contributed to throwing new lights on fiscal functions and objectives of modern government and to solve the central problems. Yet this is only an initial step in applying the results of fiscal theory to the interdependent market and public economy.After a period of stagnation a process of theoretical foundation and economizing of this field has begun, preliminarily resulting in an amalgamation of fiscal and economic theory and in an incorporation of fiscal into economic policy. This merger logically raised the question how far this branch is to be considered a proper field of the tripartite Political Economy which—as is wellknown—is still taken as a basis of our academic institutions as well as of many textbooks. Along with the methods of research and theorizing the questions and thus the problems of this branch have changed to a degree that its traditional framework and even its name have become questionable. The label ‘public finance’ today does not cover essential parts or aspects of the objects in theory and practice sufficiently. We are interested in the principles of public economy (not primarily of public finance) and the interrelations to the market economy, the problems thus ranging from activating and allocating a nation's resources to distributing income and wealth and, to stabilizing internal and external growth. The central aim of modern public finance is to make transparent the circular flow and the interdependence within public sector and between market and public economy by budget- and market theory in order to obtain results which can be successfully applied to a rational economic and general policy. The idea of an autonomous theory of public finance has indeed been overcome, although the peculiarity of political decision making renders a comprehensive theory of a nation's economy more difficult in which government activity is subdued to economic principles.

Notes: The essay examines the influence of capital imports on the structure of a developing economy. A significant and persistent capital import will result in a relatively low foreign exchange rate. Consequently, the share of internationally tradable goods and services in national product tends to be low. This will be reflected in a higher share of services and in a smaller share of agriculture and manufacturing in national product and in the labour force of an import surplus economy as compared with a balancing economy with the same internal resources. International comparisons show larger differences in productivity for tradable goods and services than for non-tradable goods and services. Considerable gains can, therefore, be obtained in low-productivity countries by enlarging the production of non-tradables and by limiting the production of tradables to those with a high comparative advantage. Thus, the average capital/product ratio tends to be smaller and average product per employed person larger, when there are significant and persistent import surpluses as compared with a situation in which international accounts are balanced. This, together with the larger investments made possible by capital imports, will increase the growth rate.But the import surplus economy becomes structurally dependent on capital imports. To be able to balance its international accounts it must adjust its structures, i.e. increase the share of tradable goods and services in national product so that it can replace import surplus by larger exports and by import substitutes and increase domestic savings. To achieve this a deliberate government policy is necessary.