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SUMMARY The paper presents a model of interest rates structure with direct implications to the saving-investment process. The capital market is divided into private and government sectors, which operate under the constraints of an investment-opportunities function and a cost of capital function. The model provides the government with a degree of freedom to differentiate the lending rate from the borrowing rate. This allows the government to conduct a capital policy aimed at achieving a certain desired level of savings without disturbing the process of capital allocation. The technical operation of the model is based on an institutional structure existing in many developing countries. It allows thereby a direct application for empirical research. The paper is concluded by an empirical testing of the interest rate structure in Israel and of the consistency of the Israeli Government capital policy. [ABSTRACT FROM AUTHOR]

SUMMARY Does export instability interfere with economic development? Work by M cB ean answers in the negative. He finds no systematic relationship between instability and economic growth. This paper asks three questions about M cB ean's work: (1) Has he measured the relevant variables appropriately? (2) Were special factors at work in the period he studied (1950-58) ? (3) Was his sample of countries representative? It presents a broader statistical analysis, using a different index of instability, two decades of data, and more countries. In general, the findings do not contradict M cB ean. But calculations using different time periods (1950-66 and 1956-67) do produce some evidence of interference. Furthermore, the paper finds one new relationship-a strong inverse connection between instability and the level of investment in developing countries. [ABSTRACT FROM AUTHOR]

SUMMARY The present paper uses 'optimality analysis' in order to evaluate the case for protection. It has been found that the general principles of optimal government intervention remain inviolate both in the 'static' welfare-economics world and in the context of 'growth'. The vast existing literature on the subject has been critically examined in order to drive home to the reader the main message of the present paper: that arguments for using protection as a primary instrument to remove domestic distortion, arising either from external economies, monopoly elements in production or a rural-urban wage differential, or from a differential in the rates of transformation between present and future goods are in effect arguments for providing subsidies on domestic production. Also protection is a wasteful policy in order to promote saving and investment. Instead it is far better to achieve this objective more directly by using appropriate fiscal policies. However, under certain conditions, protection may prove beneficial by attracting foreign investors to set up joint projects in the country. The novelty of the general approach of this paper lies in relating the argument to T inbergen's'targets-and-instruments' approach. More emphasis is given in the paper to the infant-industry argument and the use of tariff to attract foreign capital. This last and the growth-promotion-through-saving argument are the two new topics, not covered in the existing literature, that have been discussed at length in this paper. [ABSTRACT FROM AUTHOR]

SUMMARY This lecture on some problems araising from the international economic relations of developing countries, delivered in a developing country aims at giving a concise compendium of the principal propositions and findings of recent international trade theory. Particular emphasis is lied on the importance of pulling together commercial policy, foreign exchange policy and fiscal policy (internal taxes and subsidies) in a comprehensive scheme which was qualified by H arryH. B ell, Research Director of the UNCTAD, as a 'unified theory of protection'. In fact, the author, who is working in the praxis of international monetary and financial questions but likes personally to make 'excursions' to international trade theory and public finance, felt compelled to break down the artificial compartmentalization between the various sub-disciplines of political economy. A first attempt of this kind necessarily cannot go down into all details and necessarily rests to be completed. On this conceptual background the paper deals with the influence of inflation on development, fixed versus floating rates, tariff arguments, the attempt to construct a scientific tariff, the costs of selfsufficiency, the combined net effective rate of protection, quantitative restrictions and monetary trade biasing, the question whether import restriction or export promotion, invisibles in a unified theory of protection, capital movements and multiple exchange rates, the influence of the taxation system on relative prices and exchanges and last but not least the skeleton of a typical reform program. Admittedly, in praxis there will be as long difficulties concerning the application of the projected scientific system of protection as long as no one seems to have elaborated a satisfying empirical method in which tariffs, exchange rates and fiscal instruments are all expressed in terms of comparable units on a comparable scale. But does this matter? Praxis will follow theory. [ABSTRACT FROM AUTHOR]

SUMMARY It is the purpose of the present paper to replace the traditional theory of industrial stages by a better model based on the criteria of capital and control. In constructing the new model we became aware of the fact it is necessary to distinguish between 'capital'-intensive and 'capital'-extensive industries and again within the latter between those which worked for local consumption and for the export trade, respectively. Only for the 'capital'-extensive industries working for the export trade something like stages in the industrial development can be discovered. In fact, the stage reached in these industries in the eighteenth century brought them organizationally close to the older 'capital'-intensive industries, so that for that period we subsume both under the head of protofactory. The protofactory of the model based on capital and control shows the essential characteristics of the factory, although in reality there were some elements distinguishing the protofactory from the full-fledged factory. In the second section of the paper we describe in detail the organizational features of the protofactory after clearing up the etymological confusion in that ZUSAMMENFASSUNG Der Beitrag zielt darauf ab, die traditionelle Theorie der industriellen Stufen durch ein auf den Kriterien ≪Kapital≫ und ≪KontroIle≫ basierendes, besseres Modell zu ersetzen. Beim Aufbau dieses neuen Modells zeigte sich die Notwendig-keit einer Unterscheidung zwischen kapitahntensiven und kapitalextensiven Industrien, welche letztere wiederum unterteilt werden mussen in solche, die fiir den einheimischen Verbrauch arbeiten, und solche, die fiir den Export produ-zieren. Nur fiir die im Export tatigen kapitalextensiven Industrien lasst sich so etwas wie Stadien der industriellen Entwicklung entdecken. In der Tat brachte das Stadium, welches diese Industrien im 18. Jahrhundert erreicht hatten, sie organisatorisch in enge Verbindung zu den alteren, kapitahntensiven Industrien, so dass fiir jene Periode beide unter dem Oberbegriff'Ur-Fabrik' (protofactory) zusammengefasst werden konnen. Das auf ≪Kapital≫ und ≪K.ontrolle≫ aufge-baute Modell der Urfabrik bringt wesentliche Merkmale der Fabrik zum Aus-druck, obwohl sich in Wirklichkeit die Urfabrik von der fliigge gewordenen Fabrik in einigen Punkten unterschied. Im zweiten Teil der Arbeit werden die organisatorischen Grundziige der Urfabrik im Detail beschrieben; zuvor wird die in diesem Bereich herrschende etymologische Verwirrung geklart. Abschliessend wird gezeigt, dass weder der im organisatorischen Aufbau der Industrie tatige Geschaftsmann noch der zeit-genossische Okonom erfasst hatten, was sich vor ihren Augen abspielte. Es brauchte Jahrzehnte, bis der Industrielle die Notwendigkeit regelmassiger Ab-schreibungen erkannte, und der klassische Okonom lehrte noch lange die inverse Korrelation zwischen Lohn und Profit und die Vcrschiebbarkeit des Kapitals von Industrie zu Industrie, nachdem diese beidenfiir das putting-out system typischen Wesensziige mit dem Erscheinen der Urfabrik verschwunden waren. RÉSUMÉ Cet article a pour but, de remplacer la théorie traditionelle des stades industriels par un modèle meilleur, basé sur les critères de capital et de contrǒ1e. En construisant ce nouveau modèle, nous nous rendons compte de la nécessité, de distinguer entre industries intensives en capital et celles extensives en capital et ces dernieres de nouveau, en celles qui travaillent pour la consommation interne, et celles qui produisent pour l'exportation. C'est uniquement pour les industries extensives en capital produisant pour l'exportation, qu'on peut d^couvrir des soi-disants stades du developpement industriels. En fait, le stade atteint dans ces industries au dix-huitieme siecle les amenait du point de vue de I'organisation en relation étroite avec les industries plus vieilles et intensives en capital, de facon a ce que pour cette periode, les deux pouvaient ětre résumés sous le terme de ≪protofabrique≫. La protofabrique du modele, basee sur le capital et le contrdle met en relief les principales caracteristiques de l'usine, malgre que la protofabrique se distingue en realite en beaucoup de points de l'usine evoluée. Dans la deuxieme partie de cet article, les elements organisateurs de la protofabrique sont decrits en detail, apres avoir eclairci les confusions etymologiques. Finalement l'auteur montre, que ni le commercant actif dans le developpement organisateur de l'industrie, ni l'economiste classique contemporain ont saisi ce qui se deroulait devant leurs yeux. II a fallu des dixaines d'annees jusqu'a ce que I'industriel reconnaisse Futility d'amortisations regulieres, et l'econome classique enseignait encore longtemps la correlation inverse entre le salaire et le profit et Pajustement du capital d'une industrie a l'autre, malgre que ces deux faits typiques par le 'putting-out system', avaient disparu avec l'apparition de la protofabrique. [ABSTRACT FROM AUTHOR]

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]

SUMMARY The fact that high expenditure on armaments impedes economic growth by diverting ressources from investment has been repeatedly stressed. The present paper indicates an additional route by which military expenditure may slow down economic growth. The clue is taken from the 'export-led growth' models (B eckerman, L amfalussy) which claim a correlation between growth of exports and total economic growth. It is then argued that high military expenditure reduces export availabilities in the machinery and transport equipment sector where chances for export expansion have been above average. This brake on the most expansive sector dampens export growth in general. A slow-down in GNP-growth follows from this. A preliminary glance at the statistical picture shows that the above hypothesis should not be completely ruled out. ZUSAMMENFASSUNG Die wachstumshemmende Wirkung hoher Rüstungsausgaben, die durch die Ver-minderung von Resourcen für Investitionszwecke hervorgerufen wird, ist schon oft betont worden. Die vorliegende Arbeit weist auf einen möglichen weiteren Zusammenhang zwischen Höhe der Militärausgaben und Rate des Wirtschafts-wachstums hin. Ausgangspunkt sind die Theorien eines «export-led growth» (B eckerman, L amfalussy), die eine positive Korrelation zwischen Export- und allgemeinem Wirtschaftswachstum postulieren. Es wird dann darauf hingewiesen, dass hohe Militärausgaben das Exportangebot im Sektor der Maschinen und Ver-kehrsmittel beschneiden, der im Welthandel weit rascher expandiert als andere Sektoren. Diese Bremswirkung im expansivsten Sektor zieht eine Verlangsamung des Exportwachstums im allgemeinen nach sich und führt schliesslich zu einer relativ niedrigeren Wachstumsrate des Bruttosozialprodukts. Ein enter Blick ad das vorhandene statistische Material zeigt, dass die obige Hypothese nicht ohne weiteres von der Hand zu weisen ist. RÉSUMÉ Des dépenses importantes pour l'armement empêchent la croissance économique parce qu'elles détournent les ressources nécessaires à l'investissement. Ce fait est largement connu. L'article se tourne vers une autre relation possible entre la hauteur des dépenses militaires et le ralentissement de la croissance économique. Les théories du «export-led growth» (B eckerman, L amfalussy) servent de point de repère: elles stipulent une corrélation positive entre la croissance économique en général et celle des exportations. L'auteur démontre par la suite que les dépenses militaires élevées réduisent les possibilités d'exportations dans la secteurs des machines et des moyens de transport. On sait que partout l'expansion de ces deux secteurs at bien au-dessus de la moyenne. Pour cette raison un freinage touchant ces deux secteun particulièrement expands ralentira la croissance des exporta-tions en général et aboutira par la suite à un tau d'accroissement moins élevé du produit national brut. Un regard préliminaire Bur le matériel statistique affirme que l'hypothèse developpée par l'auteur ne devrait être exclue. [ABSTRACT FROM AUTHOR]

SUMMARY S olow's famous contribution to the theory of economic growth is based on the assumption that the savings proportions are the same for all income earners. In this study this restrictive premise is replaced by the assumption that the savings proportions vary according to the different groups of income earners. This paper sets out to analyse the resultant consequences for the long-run equilibrium growth. One essential result is that both the overall savings proportion and the capital-output-ratio are flexible. Their steady-state solutions are, in contrast to the respective solutions in S olow's original paper, dependent on the form of the production function. Moreover, there can be derived certain conditions for the special long-run equilibrium of the Neo-Classical Theorem, which are implying no specific restrictions on the savings proportions of the various groups. Besides, there is shown that on these conditions not only a maximum of total consumption per man is achieved but also an equal distribution of consumption among all groups. [ABSTRACT FROM AUTHOR]

SUMMARY The paper analyzes the effect of inflation on interest rates in the context of economic growth. It is well known that in a stationary economy inflation will result in an upward adjustment in the nominal rate of interest on bonds, but by less than the rate of inflation. To the substitution effects operating under stationary conditions economic growth adds income effects. These will generally reduce the adjustment on interest rates and may, in exceptional cases, even produce a fall in the (nominal) bond rate. This is because inflation, by stimulating capital formation, may increase real income which, depending on the income elasticity of the demand for different assets, stimulates the demand for bonds. The exceptional case may materialize even under stable conditions. The analysis is based on a model of balanced growth with stock demand functions for capital goods, bonds and cash balances, while money is issued by the government in purchasing goods and services. [ABSTRACT FROM AUTHOR]

SUMMARY In this article several standard models of economic growth are considered from the point of view of Welfare Economics. As the growth models show a rather material orientation, it might be thought useful to look for the implicit assumptions that are made with respect to the behaviour pattern of consumers and producers, who ultimately govern the actual path of a process of economic growth. To do so fruitfully, the paper starts with a discussion of the role of preferences in economic theory. A distinction is made between individual and collective preferences. The opinion is expressed that up to now economic theory neglected the influence of collective preferences on main economic categories such as prices and income. The discussion of the neo-classical and Harrod-Domar growth models from the outlook of preferences leads among others, to the conclusion that the relation between imperfect competition and economic growth should be studied in more detail. All hitherto published growth models seem to start from the behaviour pattern of individuals that is compatible with perfect competition. [ABSTRACT FROM AUTHOR]

Book reviewed in this Article A nstey, V era, and M artin, A nne. An Introduction to Economics-For Students in India and Pakistan. B axa, J akob. Adam Müllers Lebenszeugnisse. B ergler, R einhold (Ed.). Psychologische Marktanalyse. C ampbell, R obert W. Soviet Economic Power C ohen, B enjamin J. Adjustment Costs and the Distribution of new Reserves C outsoumaris, G., W estebbe, R. M., P silos, D., M ichalakis, A., and X anthakis, N. Analysis and assessment of the economic effects of the U. S. -PL 480 Programm in Greece F riedmann, K aren J. German Grain Policies and Prices: G urvitch, G eorges. The Spectrum of Social Time. H eide, H olger. Die langfristige Wirtschqftsplanung in Schweden H elleiner, K arl F. The Imperial Loans H ershlag, Z. Y. Introduction to the Modern Economic History of the Middle East. Leiden H icks, J ohn. Capital and Growth. ISEA. Planification et analyse économiques J ohri, C. K. Monetary Policy in a Developing Economy J oint E conomic C ommittee (Congress of the United States). New Directions in the Soviet Economy K iss, G ábor. Gibt es eine ≪marxistische≫ Soziologie? L ebrecht, R obert G. Automatische Konjunkturstabilisatoren oder be-wusste Konjunkturpolitik ? L eontief, W assily. Input-Output Economics. M alinvaud, E. Statistical Methods of Econometrics M artin, A lfred VON. Mensch und Gesellschaft heute. N eufeld, M aurice F. Poor Countries and Authoritarian Rule. Ø lgaard, A nders. Growth, Productivity and Relative Prices. O ulÈs, F. Economic Planning and Democracy. P opper, K arl R. Logik der Forschung. R obinson, J oan. Economics-An Awkward Corner. S achverstÄndigenrat zur B egutachtung DER GESAMTWIRTSCHAFTLICHEN E ntwigklung. Jahresgutachten S eitz, T ycho. Preisführerschaft im Oligopol. T amagna, F rank. Central Banking in Latin America. T heil, H enri. Economics and Information Theory T illy, R ichard. Financial Institutions and Industrialization in the Rhineland T ouraine, A. (et al.). Workers' Attitudes to Technical Change T ullock, G ordon (Hrsg.). Papers on Non-Market Decision Making. Y eager, L eland B. International Monetary Relations; Theory, History and Policy. Y oung, J ohn P arke. United States Gold Policy: The Case for Change [ABSTRACT FROM AUTHOR]

SUMMARY The paper presents a multisectoral growth model which is readily computable with non-linear production functions and is descriptive of economic conditions prevailing in over-populated countries. The purpose is to show the optimal allocation of resources over time in a labor surplus economy if the dominant social consideration is to increase the rate of employment as fast as possible. Given an institutionally stipulated minimum wage rate and certain other assumptions, the path that maximizes the rate of economic growth also approximates the path that minimizes the time needed to attein full employment as long as the rate of increase of the capital stock exceeds the rate of growth of the potential labor force. A rigorous proof of the proposition is presented with the help of the calculus of variations and the numerically computable solution of the growth model is derived from the conditions underlying the optimum at any moment of time. The model is an analogue of competitive markets under appropriate demand conditions. In addition, since it is computable, the model can be used by economic planners in countries where large scale unemploffment or under-employ-ment exists. [ABSTRACT FROM AUTHOR]

SUMMARY The purpose of this paper is to offer an appraisal, in the light of the theory of economic policy, of some recent attempts to survey the fiscal systems of a number of SUPHAN ANDIC AND ALAN PEACOCK African and South American countries. The authors contend that any recommendations about the size and structure of the fiscal system must be clearly related to specific policy aims which are embodied in an economic model in which the variables and parameters are adapted to the economy in question. They also stress that recommendations concerning changes in the administrative structure depend on the type of model considered relevant to the particular circumstances of the economy under scrutiny. The various fiscal surveys are then examined, it being admitted from the out-set that they have been conducted under difficulties (e.g. lack of statistics, sensitivity of the sponsors to criticisms of existing policies). Nevertheless, as the surveys rarely do more than list objectives without reference to orders of priority and are frequently vague about the type of economic models employed and the values of parameters, it is impossible to evaluate their policy recommendations. [ABSTRACT FROM AUTHOR]

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]

SUMMARY As a measure of society's marginal rate of substitution between consumption in consecutive years, the STP rate is basic to evaluating public investment alternatives. This paper derives the STP rate as a function of two 'observable parameters' (the growth rates of population and consumption) and three 'policy parameters' (the 'pure' time-preference rate, the elasticity of the utility-consumption function, and a population parameter). The equality of the rate of growth and the STP rate is shown to be only a very special case. The STP rate is unaffected by the relative shares of different income groups as long as the distribution remains unchanged. [ABSTRACT FROM AUTHOR]

SUMMARY This paper touches on three models of growth, viz: the F el'dman (Soviet) model, the H arrod-D omar model and the M ahalanobis (Indian) model. Of these three, the ancestry of the first is maintained in respect of both its contents and historical sequence. It is argued that the Soviet model is superior to the other two models because it recognizes the significance of a number of factors, viz: (a) the pattern of income distribution, (b) increase in the effective utilization of the existing capital stock, (c) distinction between degrees of effective utilization of the old and the new capital stocks, and lastly, (d) consideration of the rate of growth in terms of capital capacity as well as in terms of the absorption of a growing labour supply. In other respects, the model runs more or less parallel to the H arrod-D omar and M ahalanobis models. Some striking similarities between the Soviet and Indian models exist in spite of the differences in economic and political conditions of the two countries. These are: (a) the Marxian setting of two departments of a closed economy, (b) the aim of achieving a high rate of investment by expanding the capital goods sector and (c) a relative neglect of propensity to save as a crucial variable in the process of growth. The affinity between the Indian and the Soviet models is so strong that the former seems to answer the Soviet rather than the Indian conditions. [ABSTRACT FROM AUTHOR]

SUMMARY Many of the central problems surrounding economic development require a broader analytic context than that provided by traditional Western economic theory. The value of the institutionalist tradition has been referred to with increasing frequency in this regard. The contributions and shortcomings of this tradition are well illustrated in V eblen's thought. The shortcomings, the principal subject of this paper, include (a) an inadequate treatment of economic motivation (b) a tendency to view the study of economic institutions as a substitute for, rather than a complement to, price theory (including the related disciplines of mathematical economics and econometrics) and (c) an inadequate exploration of the nature and significance of alternative institutions in their relation to economic development. In each of these respects the concepts and comparative analyses of M ax W eber provide valuable additions to both methodology and theory. Weber's legacy deserves the attention of all those who believe that (to paraphrase Whitehead) economics should be a survey of possibilities, not a quarrel among irritable professors. [ABSTRACT FROM AUTHOR]

rrow, K. J., K arlin, S., and S carf, H. (eds.). Studies in Applied Probability and Management Science. i B ailey, M artin J. National Income and the Price Level. B esson, J ean-F ranÇois. Les groupes industriels et l'Europe. B rus, W. Ogólne problemy funkcjonowania gospodarki socjalistycznej. C airncross, A. K. Factors in Economic Development. G ottfurcht, H ans. Die internationale Gewerkschaftsbewegung im Weltgeschehen. H aroldsen, E dwin O. (ed.). Food-One Tool in International Economic Development. H irschman, A lbert O. Journeys toward Progress: Studies of Economic Policy-Making in Latin America. H omer, S idney. A History of Interest Rates - 2000 B. C. to the Present. J ohnston, T. L. Collective Bargaining in Sweden. K ahn, H ilda R. Salaries in the Public Services in England and Wales. K rauel, W olfgang. Betrachtungen über geistige Strömungen im modernen Brasilien. M eier, G erald M. International Trade and Development. P aish, F. W. Studies in an Inflationary Economy. P almer, G ladys L. and others. The Reluctant Job Changer: Studies in Work Attachments and Aspirations. R obbins, L ord. Politics and Economics - Papers in Political Economy. R osenbluth, G. and T horburn, H. G., Canadian Anti-Combines Administration 1952-1960. W asserman M ax J., H ultman C harles W., Z soldos L aszlo. International Finance. W rigley, E. A. Industrial Growth and Population Change. [ABSTRACT FROM AUTHOR]

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Copyright of Kyklos is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

debahr, H ubertus: Die Fluktuation der Arbeitskräfte. A ndic, F uat, A ndic, S uphan, and D osser, D ouglas: A Theory of Economic Integration for Developing Countries. A rrow, K enneth J., and H ahn, F. H.: General Competitive Analysis. B alestra, P ietro: Calcul matriciel pour économistes. B lattner, N iklaus: Die Rolle des Wettbewerbs im Aussenhandel. B ronfenbrenner, M artin: Income Distribution Theory. B runs, W illiam J., Jr.: Introduction to Accounting: Economic Measurement for Decisions. B urkhead, J esse, and M iner, J erry: Public Expenditure. C ulbertson, J ohn M.: Economic Development. C urtis, T homas B., and V astine Jr., J ohn R obert: The Kennedy Round and the Future of American Trade. D alton, G eorge: Economic Anthropology and Development. D avis, L ance E., and N orth, D ouglass C.: Institutional Change and American Economic Growth. D ue, J ohn F.: Indirect Taxation in Developing Countries. G riliches, Z vi, and R ingstad, V idar: Economies of Scale and the Form of the Production Function. Guidelines for Project Evaluation. H aller, H einz, und A lbers, W illi (Hrsg.): Probleme der Staatsver-schuldung. H aveman, R obert H.: The Economic Performance of Public Investments. J ackson, J ohn N.: The Urban Future J änicke, M artin: Totalitäre Herrschaft. J ochimsen, R eimut, und K nobel, H elmut (Hrsg.): Gegenstand und Methoden der Nationalökonomie. J ohnson, H. G., and a Committee of the Money Study Group (Eds.): Readings in British Monetary Economics. K anet, R oger E. (Ed.): The Behavioral Revolution and Communist Studies. K ennedy, K ieran A.: Productivity and Industrial Growth. K iss, T ibor: International Division of Labour in Open Economies. K oblitz, H orst G eorg: Einkommensverteilung und Inflation in kurz-fristiger Analyse. K ornai, J ános: Anti-Equilibrium. R ader, T rout: Theory of Microeconomics. K osta, H. G. J., K ramer, H., und S láma, J.: Der technologische Fort-schritt in Österreich und in der Tschechoslowakei. L ambert, D enis-C lair, et M artin, J ean-M arie: L'Amérique Latine. L amberton, D. M. (Ed.): Economics of Information and Knowledge. M archal, J ean, et L ecaillon, J acques: Analyse Monétaire. O ates, W allace E.: Fiscal Federalism. R urup, B ert: Die Programmfunktion des Bundeshaushaltsplanes. S chäfer, H ans-B ernd: Imperialismusthesen und Handelsgewinne. S cheps, S amuel: The Dethronement of Gold. V ajda, I mre, and S imai, M ihály (Eds.): Foreign Trade in a Planned Economy. V oss, P eter: Zielkonforme Ausgestaltung der Mindestreservenpolitik. W hittington, G eoffrey: The Prediction of Profitability and Other Studies of Company Behaviour. [ABSTRACT FROM AUTHOR]

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]

The article discusses the planning reforms implemented in Poland during 1964 and 1965. Topics discussed include Stalinist system, a political and economic system implemented in Poland, failure of traditional planning methods in providing services such as quality improvement, innovation and cost reduction, and decrease in sale of industrial products from Poland in its home and foreign market. A table depicting Eastern Europe's industrialization level vs. economic slowdown is presented.

SUMMARY The main problem of underdeveloped countries consists in an inflexible productive structure which makes it difficult to adopt to changes in world markets. There are three important instruments to improve their flexibility. The first instrument are the investments - not investments in general (this is only of interest in the context of stabilization policies) but specific investment projects or programs. The author distinguishes directly and indirectly productive investments, which require separate investment criteria. For the latter especially the fact ought to be taken account of that they cause large future current expenditures, therefore absorbe future resources ahead of creating them. The second instrument is the budget. In underdeveloped countries its task is not only to finance the public services but also to accumulate savings. It becomes the link between the public and the private sectors as well as between directly and indirectly productive investments, and, by this, the main instrument for development. The third instrument is the balance of payment policy: avoidance of balance of payment crises and efficient use of export receipt. Its further tasks consist in creating public savings-a task that is very often underestimated compared to the infant industry argument or the directing of import and export. In the last part the author scrutinizes a special problem of planning a specific investment project: shadow or accounting prices (wages, interest rates, exchange rate). The theory implies that all investments are directly productive, which ist too simple. When shadow prices are adopted, the budgetary consequences are neglected. E.g. a project is chosen on grounds of low shadow wages, nevertheless market wages have to be paid. The difference is a charge on the budget. The possibilities of productive investment are reduced, the composition of directly and indirectly productive investments altered in favour of the latter, and economic growth diminished. The author therefore concludes that the adoption of shadow prices calculated from a static system might prove disastrous to future growth. The solution would consist in realizingall investment projects the rate of return of which would exceed the interest rate of, say, the World Bank (more or less opportunity cost of capital), and limiting investment in indirectly productive activities to what the budget can stand, in particular to an amount that does not foreclose future savings. [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]

SUMMARY 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. [ABSTRACT FROM AUTHOR]

SUMMARY Is fiscal policy in support of economic growth such a potentially important factor that one might say that it could modify the nature of American capitalism? With-out going into the question of definition of capitalism it is assumed here (1) that the market forces alone would not assure realization of a desirable rate of growth, and (2) that a market system in itself is inherently unstable and subject to economic fluctuations. For policy in support of economic growth it is necessary to combine a steady expansion in aggregate demand with specific Government programs and tax measures designed to strengthen the economic potential and to remove obstacles to economic growth. The feasibility and requirements for success of such a fiscal policy are elaborated by discussing specific objections which could be raised, namely: (1) that a continuation of such policies may lead to 'cold socialization' (2) that such policies have an inadequate leverage effect for influencing sufficiently the private sector; (3) that such policies may lead to continuing inflation; (4) that our knowledge of the growth process is inadequate and that political decision makers may not adopt economic advice. These considerations lead to the conclusion that fiscal policies may modify essential characteristics of capitalism as we have known it in past history or as it has been pictured by antagonists. Fiscal policies should not be merely 'fiscal' in the conventional definition of the term but must be related to other government programs, to monetary policy, to income policy, and to informational and political adaptations. [ABSTRACT FROM AUTHOR]

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