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SUMMARY 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. ZUSAMMENFASSUNG Beitrag 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. RÉSUMÉ Recherche 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. [ABSTRACT FROM AUTHOR]

In spite or a recent resurgence of interest in the economics of minority groups at least one burning question still awaits a definitive answer in American discussions of the subject. This is whether or not the Negro's economic position has improved pari passu with the development of the economy as a whole. So far attempted answers have differed greatly. Representative of the one group is an opinion subscribed to by economist Herman D. Bloch that the idea that the Negro has enjoyed an advance in economic status is a fallacy. In this paper it is attempted to scrutinize the validity of this statement. There seems to be an unnecessary undercurrent of despondency about the economic future of Negroes. This is perhaps a result of social scientists allowing themselves to be so moved by the worldwide abhorrence of discrimination that they tend to exaggerate the incidence and effects of such discrimination, almost as if all Negroes were poor and all whites rich. The fact is that the relative number of Negroes in higher income groups has been rising. Indeed, it is often overlooked that white poverty is actually a bigger problem than Negro poverty for instance, compared with 4 million Negro poor in rural areas, there are more than 12 million poor whites,15 and neither is white poverty limited to rural areas.

SUMMARY The paper starts from Schumpeter's interpretation of Adam Smith's concept of the contemporary embryonic industrialist whose main function was considered to be the accumulation of capital. The author traces the development of this concept in the nineteenth century and tries to explain its origin. He shows that medieval reality, i.e. the relationship between stans and transactor in the societas maris is at the root of Smith's concept. It remained justifiable as late as 1776 on the basis of the cooperation of capitalist and entrepreneur-manager in the early mechanized cotton industry, as it is presented in Robert Owen's autobiography. But just this self-testimony shows also the rapid change of this relationship after the appearance of the Wealth of Nations, which neither the classical economists nor Marx under-stood in their implications. From this came an unfortunate economic legacy, the misunderstanding of certain aspects of entrepreneurship, which only Schumpeter discarded on principle in his Theory of EconomicDevelopment. [ABSTRACT FROM AUTHOR]

This article presents a discussion about the U.S. Securities and Exchange Commission's (SEC) Special Study, "Report of the Special Study of the Securities Markets of the Securities and Exchange Commission," by Irwin Friend, in which he distinguishes between the public interest and the protection of investors aspects of the securities acts. The author here supports Friend's criticism of the report, which is that it does not contain generally acceptable means for judging the performance of the securities markets.

SUMMARY The first to draw Soviet economists' attention-in the early 'sixties'-to the von Neumann model, hitherto unknown in, and indeed alien to Soviet economics, was N emchinov. The subject was taken up by several writers: of particular interest is the impact of the construct on the model of'dynamic planning' designed by K antorovich and M akarov; this is the theme of the present article. MORTON and Z auberman start from a discussion of the von Neumann-type equilibrium in a long term economic plan. They then turn to several specific issues which have been for some time focal in Soviet planning thought and analyse the significance for them of the von Neumann model. These are in particular the nexus between the pace of the economy's growth and investment efficiency-traditionally recognized as central in the advance for Soviet economy; further the problems of efficiency and profit rates and in general the efficiency parameters (pricing). The authors also discuss the quest for an optimality criterion-from the angle of their theme. The article concludes with precepts for the planner as influenced by the VON N eumann ideas. [ABSTRACT FROM AUTHOR]

SUMMARY 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. [ABSTRACT FROM AUTHOR]

Questions of choice of techniques and technical change are often discussed as economic problems in the underdeveloped countries, but economists have not systematically taken account of systems of political economy to which their discussions refer. The main argument of this article is that this failure to be systematic about questions of political economy may lead to simplistic recommendations about technology policies, and possibly to some rather ill founded optimism about the efficacy of appropriate technologies as a cure for problems of unemployment and mal distribution of income. It is useful, for illustrative purposes, to start out with a brief discussion of some particular points about A.K. Sen's analysis of choice of techniques. Possibly, the least-noticed assumption is the assumption of a planned economy. All surpluses above the needs of current consumption are directly controlled by the state and are reinvested. Investible resources are scarce and the planners choose techniques of production which maximize their objectives function, subject to the constraints of this scarcity.

The article features an independent body of an international organization, Development Centre of the Organization for Economic Co-operation and Development. It aims to aid less developed countries in the implementation of its development policies by enforcing these nations with the learning and experiences acquired from industrialized countries. It is led by notable economists as vice president, associate members and involving the former French Minister, Robert Buron as its president. Its secondary function is to promote tasks which strengthens the link between institutes citing its program expansion which centers on the economic development research.

The proposal to establish, in Latin America, a teaching and research institute for the exchange of information among monetary authorities was first put forward by the Bank of Mexico during the Second Meeting of Central Bank Technicians of the American Continent in Santiago, Chile, in December 1949. The meeting adopted the proposal and designated an Ad-hoc Committee of outstanding economists from five countries to prepare the basis for the establishment of the center. The committee's recommendations were discussed at the Third Meeting of Central Bank Technicians and a basic statute and a statement of the general purposes of Centro De Estudios Monetarios Latinoamericanos were approved. Its main objectives were to promote a better understanding of monetary and banking matters in Latin America, as well as of the pertinent aspects of fiscal policy and their relationship to conclusions and principles which could be utilized in the formulation of practical measures by the monetary authorities to achieve a balanced economic development in those countries.

This article discusses the principle of growth instability based on the proposition of economist Roy Harrod. Several versions now exist of Harrod's proposition that the warranted rate of growth is unstable. The formal correctness of demonstrations of the instability property contained in some well-known formulations of the Harrod thesis seems to have been generally accepted. The objectives of this article are twofold: first, the author formulates a version of the Harrod dynamics which shows clearly the role of expectations in a growth context, at the level of abstraction and aggregation which most analyses of the Harrod instability principle assume; second, it is shown that the seemingly stable cases are not capable of persisting through time and must become converted to unstable cases thus establishing eventual instability always. The conclusion stems from a Keynesian formulation of growth in period terms, where errors in expectations regarding demand turn out to be systematic in character. Formulae expressing expected demand will be revised over time, but any revisions that are a priori likely are just the opposite of what is required by stability. It appears justified, accordingly, to conceive of a growth process such that in each period of time, expectations determine actual output.

In view of the attention given to economic development recently, it is appropriate to re-examine the works of an early pioneer in the field, economist John R. Commons. As an economist of the Institutionalist School, he insisted that cultural forces, legal institutions, religious influences, social customs, and many other ever-changing factors now considered by modern developmental economists, be included in the field of economics. Commons would have the State, play the role of the wise and kindly father. It would jealously guard the welfare of its citizens by maintaining a healthy economic climate. By monetary means, it would keep the economy on an even keel. Through all types of trouble, it would protect the workers by providing them with security of incomes by means of a comprehensive social security program. Yet, like the wise father, the State would limit its interference with the activities of its citizens. It would refrain from imposing such direct controls as would seriously reduce the area of the citizen's freedom.

Examines the economic growth model based on economist Joan Robinson's analysis of economic development. Technical coefficient of production; Short-period equilibrium; Relationship between level of profits and rate of investment.