Abstract: In many problems of economic theory we need to use aggregates. The general Walrasian system and its more modern dynamic extensions are relatively barren of results for macroeconomics and economic policy. Hence, in our desire to deal with such questions we use highly aggregated systems by sheer necessity, often without having much more than the same necessity as our justification. Perhaps the most important result to date for justifying aggregation under certain circumstances is the Lange-Hicks1 condition, about which we shall say more later.

Abstract: Since many of the difficulties connected with the analysis of entrepreneurial behavior must be ascribed to a lack of empirical data, it is a fortunate thing that in recent years large, regular, and detailed surveys in the field of industry and trade have been established. One of these, that of the IFO-Institut fur Wirtschaftsforschung, Munich, is the subject of the present paper. An important feature of this survey, which started in the beginning of 1950, is that it is concerned both with actual and anticipated phenomena. These and other aspects are described in section 2; section 3 deals with the relationship of the results of this survey to conventional statistical data; and the remaining sections are devoted to the interrelationships of the survey results themselves.

Abstract: THIS HIGHLY specialized paper grew out of a rather general program for analyzing security prices by multiple regression, with the ultimate objective of answering a whole series of questions regarding the supply of and demand for capital. The selection of bank stocks for immediate attention arose out of the unusual condition of bank capital following the World War II inflation, when rapid expansion of deposits was reducing the capital-to-asset ratios of banks to historically low levels. At the same time, the market for bank stocks was somewhat unfavorable, with many issues selling for less than book value, so that bankers often seemed reluctant to raise additional capital by means of new stock issues. Thus the bank stock market commanded the attentions of the bank supervisory officials and bankers alike. Were the common discounts from book value due to unsatisfactory bank earnings? If so, what level of eamings would be required to eliminate these discounts? Or could discounts be substantially reduced, if not entirely eliminated, by merely paying more generous dividends out of existing earnings? Finally, were the discounts in any way affected by capital-to-asset ratios? These questions, whose economic implications are discussed elsewhere,2 can all be attacked by a multiple regression analysis in which the dependent variable consists of bank stock prices and the independent variables consist of such quantities as book value, dividends, and earnings. But although the answers thus obtained are suggestive, and possibly provocative, there remains the haunting doubt that the rigid assumptions of regression analysis do not justify its use with bank stock prices.

Abstract: The method used here represents an attempt to eliminate the influence of unspecified factors on the dependent variate in multiple regression analysis. It is applied in constructing a production function for British coal mining over the period 1943-53 and in estimating the elasticities of output with regard to labour and to horsepower, the latter indicating mechanisation. The statistical and economic significance of the results is examined.