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Investigates the employment ratio and the potential labor surplus in Phillips-type relationships. Unemployment rates; Measurement of labor market excess demand and supply; Wage-employment-unemployment process.

Parametric testing of the relationship between research and development (R&D) and firm size is limited by the hypothesized functional form, predominantly assumed to be linear in the logarithms of both variables. With a transformation of variables, the null hypothesis of constant returns to scale can be tested employing the multiple-rank F-test procedure. The findings of this analytical approach suggest that R&D intensity varies with firm size in some industries but not in others, and where it does vary, there is more evidence that R&D intensity is negatively rather than positively related to firm size. [ABSTRACT FROM AUTHOR]

This article formulates a class of aggregate supply functions of labor which is an approximation to the backward "L" shaped supply curve originally proposed by J.M. Keynes. Forty-eight members of this class are estimated using first British and then U.S. data. We then test the hypothesis that the Keynesian "L" shaped supply function is an acceptable description of the behavior of each of these economies and find that it is. This result has fairly obvious implications both for Phillips Curve and incomes policy research. [ABSTRACT FROM AUTHOR]

After reviewing Friedman's time series model, this article presents a test of whether or not permanent consumption and transitory income are correlated. We conclude utilizing essentially the same data series and the same measure of permanent income as Friedman that a significant positive correlation exists between these variables as well as between permanent and transitory income. [ABSTRACT FROM AUTHOR]

This article derives a necessary condition for the independence of permanent and transitory components of a series when the permanent component is any weighted average of past, present and future values of the observed series and the transitory component is the difference between the contemporaneous observed and permanent values of the series. This restrictive necessary condition is derived assuming a most elementary stochastic specification of the observed series. A specific example of the restrictiveness of this condition is afforded if the permanent component of a series is generated by the Koyck or exponentially-weighted expectations model. Far this leading example it is possible to derive the theoretical correlation between the permanent and transitory components of the series as a positive valued function of the coefficient of expectations adjustment. Finally, we discuss the importance of these results to Friedman's [3] permanent income theory and suggest a modification of that theory. [ABSTRACT FROM AUTHOR]