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The effects of different monetary rules on the rates of inflation and unemployment are studied by stochastic simulation of the Federal Reserve Board-MIT-Pennsylvania (FMP) Econometric Model and the St. Louis "Monetarist" Model. A number of heuristic and more formal statistical methods are used in evaluating the results, It is shown that simple feedback control rules--involving proportional and derivative controls--reduce the variability of the target variables relative to the rule in which the money supply is increased at a constant rate. The improvement is considerably greater in the St. Louis model than in the FMP model. [ABSTRACT FROM AUTHOR]

The article presents summaries of papers delivered at the 125th annual meeting of the American Statistical Association. The meeting took place on September 1965 in Philadelphia, Pennsylvania. In the paper "On the Construction of Stochastic Working Life Tables," by Haskel Benishay, stochastic working life tables are constructed and evaluated. The essence of the construction of stochastic rather than the traditionally deterministic working life tables is in the utilization of the realistic assumptions that the number of births, the number of entries into the labor force, the duration of life, and the duration of working life, are random variables. The end result is a working life table with a double entry in each cell rather than the single traditional one. The implications of this approach for the evaluation of fluctuations in various subcomponents of the labor force are evaluated. Another paper "Measuring Elasticities of Air Travel," by Samuel L. Brown, summarizes research on the response of demand for air travel to differences of fares, incomes, and elapsed travel time. There are three kinds of studies. Multiple regression studies of time series of air traffic, fares and income in the national domestic market yield short-period fare elasticities and income-elasticities. A quarterly first-difference model stands well the usual statistical tests.