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The article presents comments on papers on national renewal presented by University of the Philippines professor Zeus Salazar and National Secretariat for Social Action research director John J. Carroll as part of the Philippine Sociological Society's "Social Issues '72" public lecture series. The author holds that there are two competing strategies for the achievement of economic progress and modernity. One strategy sees national development as a process of departure from the traditional concerns of the village world into the modem and rational world of the elite. The policies of its adherents focus on monetary and fiscal stability, on the establishment of norms of legality and rationality in public administration and, most important, on creating a proper climate for entrepreneurship. There is nothing wrong with stability and rationality, per se The problem is that these policies are given priority over, and often at the expense of, those that would solve more basic problems in the country's economic and social structure. Because this strategy conceives of progress as movement from tradition to modernity, it accepts the division between the masses and the elite and sees it primarily in cultural and intellectual terms.

The article deals with three agreements signed by the United Wall Paper Crafts of North America in New York City. This association was established by a consolidation of two smaller national unions which are the National Association of Machine Printers and Color Mixers of the U.S. and the National Print Cutters' Association of America. The first contract deals with printers and color mixers and covers 300 mechanics in 19 industrial areas. The second deals with 125 printer cutters in a single factory. Lastly, the third contract covers 150 print cutters employed in the shops of print-cutting entrepreneurs.

This paper examines three patterns of entrepreneurial succession in private enterprise in developing countries. The process may be thought of as the succession from entrepreneurs to executives. The findings suggest significant variation in the adaptability of each type to the development of modern organizations in which the function of management is distinct from the manager as a person. [ABSTRACT FROM AUTHOR]

The article presents discussion by various economists, on the two papers by Arthur H. Cole and Ross M. Robertson about the changing role of competition and economic growth in the U.S. economy. According to Frank H. Knight, the paper on the role of entrepreneurship in economic growth does not deals with concepts and principles in a way to throw down a direct challenge to a theorist. One thing he misses in this article is any use of words recognizing that profit means profit or loss and is in fact as likely to be a loss as a gain. It is surely a significant fact that although the entrepreneur is dynamically the central figure in our free enterprise economy, his function in its purity and on the whole does not seem to share in the fruits of production, or even shares negatively. Commenting on the two papers the author that the common theme of the two papers probably lies in the view that theorists have failed to develop the analytical apparatus which is best suited for prediction and policy making in the mid-century U.S.

This paper discusses the nature and existence of competitive equilibria in an uncertain world. The author begins by showing that Arrow and Debreu's models of consumer and entrepreneurial choice under uncertainty do not adequately represent the behavior of consumers and firms in such a world. The author starts discussing Arrow and Debreu's models by defining two terms, a state of the world and an event. In this paper the author takes a state of the world to be a complete description of the world as it was in the past, as it is in the present, and as it will be in the future. Next, the author proposes alternative models of consumer and entrepreneurial choice under uncertainty, and he states conditions under which a competitive equilibrium would exist in an economy populated by consumers and producers who behave in accordance with our models. Finally the author discusses the possibility that financial intermediaries and risk poolers might emerge in our economy, and he shows that even in the absence of externalities a competitive economy in an uncertain world need not allocate resources efficiently. In conclusion, the author comments briefly on the efficiency of a competitive allocation of resources in our uncertain world.

This paper attempts to define long-range planning as the organized process of making entrepreneurial decisions. It tries to answer three questions asked by managers and management scientists when they hear the phrase "long-range planning": What long-range planning is and what it is not; why it is needed; and what is needed to do long-range planning. The paper concludes with a brief statement why long-range planning can be considered a major opportunity for, and challenge to, Management Science. [ABSTRACT FROM AUTHOR]

This paper identifies the leadership style, entrepreneurship, as a strategy employed by large organizations to cope with turbulent market environments. First, evidence from the popular music recording industry shows the several means by which the potentially disruptive consequences of entrepreneurship are reduced. Changes in the level of market turbulence since World War II are then explored to show that the scope of entrepreneurship is directly associated with the degree of turbulence. Finally, other organizational settings in which entrepreneurship and turbulence seem to be linked are identified, in order to suggest the generality of the relationship. [ABSTRACT FROM AUTHOR]

This paper proposes and tests a decision-making process of entrepreneurs. History of many industries shows that rapid changes in technology, accompanied by large investments and accumulations of capital occur. One production method is replaced by another as newer cost reducing techniques become available. It seems that the fate of any particular production technique can be better understood in the context of such dynamic factors as changes in technical knowledge, factor prices, demand composition together with decision-making process of the entrepreneurs. A recursive programming technique is presented that reflects the fact that entrepreneurial decisions are conditioned by interaction between technical, economic, and non-economic factors. Recursive programming technique is a recent addition to the inventory of decision-making analysis. This method is applied to the Japanese Iron and Steel Industry. Results suggest that this technique is a very promising tool of decision-making analysis. [ABSTRACT FROM AUTHOR]

This article discusses the impact of disguised and overt unemployment in underdeveloped economies. The concept of disguised unemployment has been a recurring one in the literature on underdeveloped countries. The apparent existence of excess labor, particularly in agricultural areas, has promoted the view that one of the keys to development lies in a removal of these laborers from the farm scene to urban areas where their efforts will be to greater avail. Such a sharp difference of opinion between those who consider disguised unemployment to be an important factor in underdeveloped economies and those who deny that there is evidence of its existence is by no means a unique phenomenon in economic literature. If a country is so poor that an increase in consumption will increase the working vigor of the labor force, entrepreneurs will find that the quality of the thing they are purchasing, labor hours, is not independent of its price, the wage rate. In the present paper, the reason for the simplifying assumption that there is a constant relationship between the ability to work and actual work effort lies in the difficulty of confining the concept of disguised unemployment to underdeveloped countries if this assumption is not made.

This paper develops a normative model of the entrepreneur's decision problem in which the following elements are stochastic: the entrepreneur's preferences, his lifetime, the returns from investments, and the process obeyed by the interest rate. Furthermore, the entrepreneur's preferences are assumed to be sensitive to the opportunities facing him at each decision point as well as other environmental factors. At each decision point the entrepreneur must decide how to allocate his resources between consumption, life insurance, various investment opportunities, and lending/borrowing. His objective is postulated to be the maximization of expected utility from consumption as long as he lives and from the bequest left upon his death. Optimal decision functions are obtained in closed form for a class of utility functions; their properties are examined and compared to those of the optimal strategies of less general models. [ABSTRACT FROM AUTHOR]

This section presents abstracts of papers published in the June 1965 issue of "The South African Journal of Economics." The paper "The Problem of Wage Regulation" asserts that the existing poverty makes for injudicious pay pushing by governments. The requirements for responsible trade unionism are absent and wage fixation by uncontrolled collective bargaining is dangerous. Anyhow, the main problem of these societies, employment creation, cannot be solved by wage fixation but must be attacked at its roots. According to the paper "Keynesian Revisions," the unemployment equilibrium argument-the crucial Keynesian originality and the sole justification for rejection of the Say Law-seems to have been explicitly or implicitly abandoned. The retreat has been caused by the actual course of contemporary experience rather than by academic criticism. The paper "The Economic Position of the Asians in Africa" claims that the economic position of the Asians is a function of the dual role performed by them in the economy of Africa: first, that of suppliers of regular and reliable unskilled and skilled labour while the indigenous inhabitants were still unable or unwilling to do so; second, that of entrepreneurs who aided the transition from traditional to market-orientated economies by speeding-up the introduction of money and stimulating wants in remote regions, improving the marketability of commodities and creating new employment opportunities.

The article discusses the abstracts of several papers on economics published in the January-June 1965 issue of the journal "Economie Appliqu&e." Some of the article presented in the journal are: "Econometrics and Organization Science-Common Ground and Interaction," by H. Theil; "The Decisions of Entrepreneurs," by M. Starr; "The Firm and Operational Research," by R. Faure and A. Kaufmann; "On the Necessity of a Reconstruction of the Economic Theory of the Firm," by J. Lesourne; "The Firm As Space for the Circulation of Information," by P. Laffite; "Information: Propagation and Structural Creations Inside the Firm and on the Market," by C. De Ribert-Petersen; "Finality of the Activity of the Firm," by A. Nowicki; "On the Intercomparison of Utilities," by C. Churchman; "Co-ordination Between the Plans of Firms and the Economic Objectives of the Nation," by C. O'Donnell; and Co-ordination Between the Plan of the Firm and the Economic Objectives of the Nation," by N. Chamberlain. The last of the journal examines the respective positions and functions of, and the relationships between, national economic plans and those of the various industrial units in a socialist economy.

This section presents abstracts of articles on business enterprises published in the April-September 1964 issue of the journal Economic Appliquée. The article The Firm and the Collective Phenomenon of the Second Half of the XXth Century, by F. Perroux is the first contribution in an international enquiry into the contemporary firm and its theory. The enquiry is introduced dealing successively with the frontiers of the enterprise, the social transformations of the role of the firm and of the entrepreneur, the process of decision making in the firm and the objectives and the motivations of the enterprise. Meanwhile, the paper An Economy of Concern for Adaptability, by F. Bloch-Laine discusses that the increasing complexity of modern conditions requires greater cooperation between different groups and constructive concern on the part of the entrepreneur. These problems of adaptation arise at three levels: the relations of the firm with the community, with its owners and with its personnel. Furthermore, the paper titled The Firm and Its Environment, by M. Adelman argues that external relations do not occupy a major part of the time of managers of a firm. This environment-the reactions of other firms, the constraints imposed by the State, by nature, by customs and by ignorance-has to be taken into account.

A study of 299 university scientists and engineers indicated that half claimed ideas for commercial products and services, but that only one-third of these had attempted any form of idea utilization. Experience and a background in development (as distinct from research) enhance the likelihood of generating ideas. Idea utilization is retarded by lack of attention by the idea generators and by lack of familiarity with the markets. [ABSTRACT FROM AUTHOR]

This paper considers empirically the relationship between noneconomic value commitments and the development of industrial entrepreneurship within a particular economically transitional society. The discussion below is based on research carried out among the Afrikaner population of the Republic of South Africa during 1968 and 1969. Our specific concern is with the role of Afrikaner nationalism in stimulating industrial entrepreneurship. [ABSTRACT FROM AUTHOR]

Melrose Ltd., Tea and Coffee Merchants, are one of the oldest Scottish firms in the trade. How the firm was first founded by Andrew Melrose is a story that goes back to the early nineteenth century. Studies of specific industries have described the period as one full of entrepreneurial innovation, but the changes occurring within the distributive trade have received little systematic study for the period before 1850. This paper aims to describe Melrose's business as a specific example of the entrepreneurial skill which characterized a small group of tea dealers in Great Britain, who managed, in less than twenty years after "Waterloo," to break up the quasi-monopoly of the old-established London wholesale dealers. In the 1833 parliamentary investigation of commerce and manufacturing, witnesses for the wholesale and retail trade agreed that during the previous ten or twenty years trade had improved as a result of better business methods. Melrose's surviving records show that he was well able to keep track of his multifarious activities and to assess his financial position. The accounts are clear and, in some ways, give a far more vivid picture of his business, than is possible under modem accounting methods.

The article focuses on the impact of intensity of culture on an entrepreneur's managing ability. The intensity of culture problem may be assumed that entrepreneurship is fixed and that capital and land are applied to it in varying amounts. Capital may be viewed as fixed by circumstances. Managing ability may be perceived upon as fixed, and land and capital both as variables. The discussions presented in the paper concerning the results of changes in prices and costs on intensity of culture indicate that these changes will always have an effect on the application of labor and capital to land.

The article presents a discussion related to the article on the development of entrepreneurship written by Gustav F. Papanex. By way of introduction to comments concerning his study, the author notes two facts concerning the beginning of economic growth. The first is that a low-income country cannot borrow methods from a developed country mechanically, as one person borrows another's suit of clothes or necktie. A high order of creativity is required to make Western methods or any new methods work well in a low-income traditional country. The second is that there are some psychological barriers in such societies to creativity in technology. The elite groups in a traditional society are not apt to use their energies creatively in improving methods of production for the reason that it is psychologically necessary for them to distinguish themselves from the simple folk by finding physical labor and attention to physical processes repugnant. This is an unconscious attitude and they are not aware of it. Moreover, both the elite and the simple folk are apt to have an unconscious image of the physical world as determining their lives rather than as being susceptible to change.

The purpose of this paper is to explore the theoretical possibility of equilibrating adjustments in the capital coefficient in a growing economy. In an automatically and fully adjusting economy, the capital output ratio would always assume the value corresponding to the postulate that all voluntary savings plus whatever tax payments there are must be absorbed by the planned private capital formation plus whatever government expenditures are made. The economy is not fully adjusting in this sense. But it should not be assumed that the economy is fully non-adjusting in the same sense. In general theory of economic growth, we could not simply take it for granted that the atomistic decisions of individual entrepreneurs would provide all increments to the labor force with equipment in the optimum ratio. Indeed, this might constitute a major part of the adjustment problem in an automatically adjusting economy. But an adjustment in the capital coefficient is not the appropriate remedy when unbalanced growth results from a failure of capital widening to proceed at the rate warranted by the growth of the labor force. If, for example, in an otherwise balanced situation, the actual rate of widening fell short of the warranted rate, resulting in a chronic deficiency of demand, a rise in the capital-labor ratio would reduce the deficiency of demand without eliminating growing unemployment.

The growth of individual firms to great size through merger with rivals is an outstanding development of modern economic history. The life history of the firm in late 1890s was viewed as a silhouette of that of man in an age of high infant mortality: the firm began as a small venture; if it survived the early years, it straggled along or grew at a rate governed by the entrepreneur's ability-occasionally reaching large size if his ability was extraordinary or his children's abilities great--but eventually it languished into obscurity and then into oblivion. The whole process usually took place, one infers, in one or two generations. An anthropomorphic theory of the growth of the firm, however, scarcely fits modern giants. There are no large companies in the U.S., that have not grown somewhat by merger, and probably very few that have grown much by the alternative method of internal expansion. The present paper seeks to summarize some of the major episodes in the development of the merger movement, with special reference to the question of monopoly. The discussion is restricted to so-called "horizontal" combinations, which are quantitatively much the most important form of merger.

The growth of individual firms to great size through merger with rivals is an outstanding development of modern economic history. The life history of the firm in late 1890s was viewed as a silhouette of that of man in an age of high infant mortality: the firm began as a small venture; if it survived the early years, it straggled along or grew at a rate governed by the entrepreneur's ability-occasionally reaching large size if his ability was extraordinary or his children's abilities great--but eventually it languished into obscurity and then into oblivion. The whole process usually took place, one infers, in one or two generations. An anthropomorphic theory of the growth of the firm, however, scarcely fits modern giants. There are no large companies in the U.S., that have not grown somewhat by merger, and probably very few that have grown much by the alternative method of internal expansion. The present paper seeks to summarize some of the major episodes in the development of the merger movement, with special reference to the question of monopoly. The discussion is restricted to so-called "horizontal" combinations, which are quantitatively much the most important form of merger.

From the present heavy criticism of social welfare services, it is evident that the system requires change. Today, the basic unit of service delivery is the community-sponsored social agency. The author thinks it obstructs social workers from adequately serving their clients because they must adhere to agency policy and practices that, may times, conflict with the profession's ideals and Code of Ethics. In this paper, the author proposes a new model-the private entrepreneurial model-and suggests how it may be implemented to serve social workers and their clients more fully. [ABSTRACT FROM AUTHOR]

This article concentrates on a problem which so far has received only little attention by economists, the role of human resources in the process of economic advancement of underdeveloped areas. This topic has formidable proportions and cannot be treated in full within the framework of this paper. The author confines his remarks, therefore, to a specialized point, the place of entrepreneurship in economic development, and hopes to show, at least by implication, some of the more general problems arising in a consideration of the role played by human factors of production in the process of economic development. A study of economists' opinions on entrepreneurship leads to strange and sometimes contradictory results. Some writers have identified entrepreneurship with the function of uncertainty-bearing, others with the coordination of productive resources, others with the introduction of innovations, and still others with the provision of capital. It is probably true that at different times and under different institutional conditions each of these aspects may have constituted the primary, or at least socially most significant function, of entrepreneurs, and this function was then selected as typical and regarded as the unique contribution of entrepreneurs in the process of production.

This article presents the abstract of the article The Conception of Cities published in a 1965 issue of the journal Explorations in Entrepreneurial History. The bulk of this paper is devoted to considering the circumstances which bring a city into being. The hypothesis that cities would arise on a homogenous plain of undifferentiated farmers due to the equilibrating forces of transport cost minimization and specialization economies is contrasted, theoretically and empirically, with the hypothesis that cities arise to exploit the topographical features of a site.

This study compares 416 high school boys from farm, working class, and middle class families on evaluative, cognitive, and affective aspects of entrepreneurial orientation. The hypothesis predicting that farm reared boys would be the least entrepreneurally oriented of the three occupational class groups was supported: farm boys had the lowest scores on the Business Values Profiles, the Business Knowledge Test, and the Business Career Interest scale. Middle class boys had the highest scores, and scores of sons from working class families fell in between but were closest to the farm group. The findings are interpreted in the light of previous research on the socialization of farm and working class boys, and in relation to the potential role strain engendered by the low entrepreneurial orientation of the occupational classes from which most small businessmen are recruited. [ABSTRACT FROM AUTHOR]

The article presents a study in entrepreneurship by citing the case of the Dumbarton Glass Works Company. Though both the town of Dumbarton, Scotland, and its environs have attracted the attentions of many local historians, relatively little has been written on the origins of the glass industry there. There are suggestions of a glasshouse in Dumbarton, founded so it is said by a Huguenot refugee, in the seventeenth century, and in view of the extent of industrial experiment in Scotland in that century these suggestions may well reflect the truth, but there is no traceable positive evidence. The firm evidence of glass making in Dumbarton really begins with the foundation of the Dumbarton Glass Works Company 1776, and even then there is a further gap to 1793 before the surviving business records begin. The foundation of the Dumbarton glassworks 1776 probably reflected the increasing marketing opportunities for glass in Scotland. Urban growth was one feature of this, as was the general increase in the population of Scotland, reflected in a comparison of Webster's figures in 1755 with those of the Census of 1801. Of the final phase of the company's history from 1838 to 1850 when James Christie was the sole owner, there is a lack of evidence, which makes it difficult to comment on his entrepreneurial abilities.

THE purpose of this paper is that of considering the choice of production techniques from the point of view of both the capitalist entrepreneur maximising the present value of his firm's assets at a given interest rate and the socialist planner maximising the consumption per head associated with the maintenance of a given growth rate. A model of production is set up, in which output is made of a versatile consumption and production good, called putty, and of the machines which are made of putty and are necessary to assist labour in order to produce putty. It is assumed that technical choice is irreversible, i.e., that putty is moulded and baked into clay machines of given specifications, which cannot be turned back into putty or into machines of different specifications. Also, their use is not affected by technical progress, which improves the design of new machines but not the operation of those already constructed. The assumption of the costless transformation putty into clay and the use of gross measures evade this fundamental issue of capital theory. [ABSTRACT FROM AUTHOR]

The article presents a proposal for extending the theory of a business firm. Traditional theory of the firm views the entrepreneur as a rational calculator of costs, prices, and profits, although for broader purposes of analysis, some notion of utility may be used. The firm is viewed as a point possessing certain properties which yield results desired for other areas of analysis. This firm was constructed Study of behavior within the firm would seem to be an appropriate domain for economic analysis, and recent developments give promise of fruitful results. Even Within the firm, much work needs to be done before an adequate theory can emerge. Following the control lines of standard costs through the budgets of the agent inferior and superior to the top echelons it may be possible to move into the equity and profit- and-loss accounts for the analysis of overall firm behavior. The characteristic entrepreneur-factor relation assumed in economic theory may be viewed as a type of organization, of a very primitive and simple kind.

It is the purpose of this article is to show that the concept of effective rate of protection is useful in defining protection policies given the constraints under which policy is often formulated in less developed economies. It studies the appropriate structure of protection when it is desired that a given amount of value-added he generated in a high priority sector of the economy. Arguments for giving general preferences to industrial activity, for instance, are often based on alleged dynamic affects on technology, the quality of the labor input, and the quality of entrepreneurship. Whether or not it is certain that these types of social benefits are specific to industry in general or certain types of industry in particular, they clearly are felt to be by policy makers in less developed countries. This paper is aimed at developing rational guidelines to policies based on these considerations. The problem considered in this article is to maximize the consumption possibilities open to the domestic economy subject to the constraint that a certain amount of value-added is generated in the industrial sector.

The article discusses the realistic theory of entrepreneurship. It suggests that the future of freedom of enterprise is dependent on the action of enterprisers contributing to industrial serviceability and economic stability. The article presents a comparison between psychologists and economic theorists in exploring the dynamics of the creative process and economic concepts. It is suggested that psychologists have gone much further than the economic theorists in exploring the dynamics of the creative process, but their concepts should be used along with economic concepts for a full exploration of this challenging and extremely elusive field. It seems obvious, for example, that, if we are to understand entrepreneurial decisions, we need to know more about the motivations and drives of innovating entrepreneurs. We also need to understand the influence of the "top-management group" on decisions. Decisions today are seldom made by one man. They are increasingly "talked out" by a group. There is almost always a group leader, but his followers also play a vital role in decision making.

In this article the author suggests possibilities for a realistic theory of entrepreneurship. He also focuses on the contrast between the preoccupations of economists in the 1930s and in the late 1940s. According to the author criticism rests, on the generality of the concept of entrepreneur, a result of the failure to identify him with any specific set of conditions, institutional and ideological. For comparative study of long-period change, the author found the entrepreneur most useful if visualized as an ideal type in the Weber sense, and hence to be regarded as an objectively possible entity even though one we would not expect to find in all its purity in real life. This ideal type may be taken as one responding to a free competitive market, making his decisions, innovating and managing in response to competitive market forces, in short, an idealized economic category operating freely in an idealized institutional environment. The entrepreneur, then, maximizes his net income as his primary motivation, the ideal authoritarian form maximizes period of existence as its most come pelling purpose. Maximization of income with the limitations set by the market is the criterion in the one instance; in the other, dominance of the market provides the means of ensuring continuity of income as more significant than highest returns.

Strenuous efforts are now being made to convince the public that voluntary price reductions toward the height of a boom would largely avoid recession. Admittedly such reductions-perfectly timed-would help. But as a means even of keeping depression within bounds, consider them almost entirely ineffectual. Suppose a system is about to reach a point of backlog saturation. Price reduction to avoid depression would have to be made in precisely the industries whose demand curves have sufficient elasticity to mike it worth while. Also there must be enough such industries. Yet in such a situation many of the necessary industries would be entirely new. They would have to be created by strenuous entrepreneurial effort. The system would have to be sufficiently flexible to make a drastic and virtually instantaneous shift in the direction of its productive flow. The inevitable discontinuity of durable goods production in a free society cannot be avoided by mere ex ante price reduction. Other means of stabilization-as public works-must be kept in reserve. It is said that people usually become neurotic when they want irreconcilable things. Our society is neurotic in demanding a degree of stability impossible to combine perfectly with the promptness in satisfying demand for which people clamor. One cannot escape this dilemma by seeking out a whipping boy called monopoly or rigid prices, and it is to be regretted that the Council of Economic Advisers is not putting more of its effort into facing the real issue. It is in the hope of focusing attention on these issues that the author offers his rather elementary terminological critique.

This article investigates the limitations of the use of marginal analysis for wage-employment problems. The conventional explanation of the output and employment policies of individual firms runs in terms of maximizing profits by equating marginal revenue and marginal cost. Student protests that their entrepreneurial parents claim not to operate on the marginal principle have apparently failed to shake the confidence of the textbook writers in the validity of the marginal analysis. The trend over the past decade has been to devote more and more space in elementary text-books to complicated graphs illustrating marginal relationships and to detailed discussions of marginal analysis under a variety of assumed circumstances. The practical and technical difficulties involved in attempting to apply the marginal analysis to wage-employment matters deserve more attention than can be given them here. This discussion only indicates some of the problems involved in shifting the proportion of factors in manufacturing plants or in calculating the marginal contributions of factors and points to certain disturbing data. Market demand is far more important than wage rates in determining a firm's volume of employment.

Provides information on a study which examined the determinants of entrepreneurship in Asia. Information on the factor analysis; Results of the study; Implications of the results.

The article presents information on a study which developed a theory of demand for cash balances in the manufacturing sector in the U.S. based on a model of rational entrepreneurial behavior. By specifying and accurately measuring the opportunity cost of money, factor prices and scale variables, it is possible to trace the influences of capital gains, interest rates, factor prices, changes in general price levels and the size of transactions on the desired real cash holdings of the corporate sector. Real cash balances serve as productive inputs. They are part of the working capital of the firm facilitating its productive process, often by indirect means, such as hedging against changes in the prices of capital and labor and the interest rate. Holding adequate cash balances may reduce the uncertainty of meeting current payments, thus avoiding unnecessary and unprofitable liquidation of other assets. Labor is a quasi-fixed factor of production and its user cost consists of a variable component and fixed charges. The variable component consists of the straight-time wage payments; the fixed costs are investment in training, skills, conditions of work and a depreciation cost due to separation of the firm's labor force.

The purpose of this paper is to investigate in detail the dynamics of a simple model with heterogeneous capital goods under alternative assumptions about expectations formation and saving. Before investment takes place, the entrepreneur has a choice over a large number (to be precise, a continuum) of types of machines; those which require more resources today require less labor per unit of output in the future. But once the machine has been constructed, it cannot be altered. This is just the exante smooth substitutability-ex post rigid complementarity model (or the putty-clay model), alternative versions of which have been studied by Johansen (1959) and Solow (1962). (See also Phelps, 1963; Akerlof, 1967; Sheshinski, 1967; and Stiglitz, 1968.) Optimal saving behavior, unlike that in the malleable capital model, results in roughly two phases of development: an earlier phase in which output is specialized in investment, and a later phase in which investment is specialized in a single technique. Both phases, as in the optimal evolution of the malleable capital model, result in providing production possibilities corresponding to the planner's rate of time preference. Finally, because outside of balanced growth the quantitative as well as qualitative behavior of the economy is different from that of the malleable capital model, estimations of the residual, the elasticity of substitution, or investment functions based on the malleable capital model may be seriously misleading. [ABSTRACT FROM AUTHOR]

This section presents abstracts of research papers on economics which were published as of June 1967. Salary Indices for School Teachers analyses changes in the salaries of teachers employed in maintained primary and secondary schools in England and Wales during recent years. Adaptation of Cooperatives to Economic Changes: The Israeli Experience analyses the basic features of the Israeli cooperative movement in its various stages of development, from the early nineteen twenties when Palestine was a backward British Mandate territory, with a Jewish population of about 100,000, to our days. The Decision Process and Entrepreneurial Returns shows that a consistent profits pattern arises over time. Profits play the same role in an economy marked by distance as do rents in the classical conception. Ownership and the Production Function advances the thesis that the phenomenon of ownership in economic systems can best be understood in terms of strategic control over goods and processes. Quantification of Road User Savings deals with one aspect of the economic evaluation of investments in road improvements. This is an attempt to arrive at a generally acceptable, more homogeneous approach to the problem of calculating the vehicle operating savings.

This article discusses the paper "Entrepreneurial Efficiency in the British Coal Industry Between the Wars," by N.K. Buxton, published in the previous issue of the journal "Economic History Review." The purpose is to show that whilst Buxton has correctly identified what has come to be regarded as "the greatest shortcoming" of British colliery owners, he has, at the same time, demonstrated a complete misunderstanding of the nature of the issues involved in reorganization. By his failure to define his terms rigorously Buxton has confused the issues that were at stake. Instead he embarked upon an analysis of the relationship between size and efficiency of mines. He begins by comparing the findings of the Royal Commission on the size of colliery undertakings with information derived from the Ministry of Fuel and Power Statistical Digest from 1938 relating to the size of mines. Colliery owners were not criticized for the small size of their mines, but for their failure to create large undertakings by means of colliery amalgamations. Although amalgamation of undertakings provided the basis for the interwar rationalization program, an important, but subsidiary, part of this program was the elimination of surplus capacity. The essential point to note here is that it was never suggested that surplus capacity should be eliminated solely by the closure of small mines.

The article presents abstracts of marketing literature related to marketing research and research techniques. They include "How Chronic Overclaimers Distort Survey Findings," by William D. Wells, "The Uses of Economic Research," and "Professional Writing: Why and How," by David R. Diley.

Both choice of and attitude towards business as an occupation were predicted from the components of instrumentality theory. The results supported the theory. There also was a strong indication that the reasons for not choosing business were more related to the instrumentality component of the theory than to the evaluation component. [ABSTRACT FROM AUTHOR]

Entrepreneurship can and should be viewed as a corporate function. How to build this function into an existing organization, however, requires some knowledge of those organizational factors which promote and hinder entrepreneurial action. This article identifies and discusses what some of these factors are and suggests how they might be used in practical management strategies. [ABSTRACT FROM AUTHOR]

The rationalization of industrial management has limited the role of innovation and encouraged the substitution of the concept of manager for that of entrepreneur. The author shows that the distinction is still useful if entrepreneurship is redefined in terms of formal authority. This requires the replacement of Schumpeter's classical emphasis upon innovation with Weber's concept of the entrepreneur as the source of all formal authority within the organization. A survey of German management suggests that Weber's definition and the author's concepts are operational. Other bases of differentiation such as decision making, functional role, and charismatic qualities are analyzed. [ABSTRACT FROM AUTHOR]

Since bureaucratic organizations are incapable of coping effectively with environmental changes, a new approach to corporate innovation has become widespread: venture management. And although its publicity has been abundant, research on the problems of the venture manager has not. [ABSTRACT FROM AUTHOR]

The author discusses the various definitions of an entrepreneur and the means of testing for roles which delineate entrepreneurial behavior. Important in testing is achievement motivation and where it originates. [ABSTRACT FROM AUTHOR]

Sociologists, psychologists, economists, mathematicians, all view the firm in different lights. Some think of it as a blind organism, bent on survival at all costs. Others treat it as a rational being impelled solely by the desire to make a profit. Mathematicians chart its vagaries in terms of gaming theory and automationists look on it as a decision making machine. Sociologists analyze its group relationships and dynamics. All of which may prove, as this survey article indicates, that there is no universal definition for so complex a thing, and today's businessmen, seeking one, had best examine all such concepts with open eyes and an open mind. [ABSTRACT FROM AUTHOR]