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The article presents an overview on the different types of control and incentives that both the U.S. and Great Britain used and applied in their urban and regional planning. Both countries has developed an effective physical planning to maximize their goal for economic development. Government leaders of both countries illustrate the effect of socio-economic trends towards the development of their physical planning policies. The development of a parallel physical planning system would help both countries obtain regional goals.

This article comments on the article The U.S. Response to Foreign Industrial Targeting, by Paul Krugman which was published in the January 1984 issue of the journal Brookings Papers on Economic Activity. The paper is an elegant essay in development economics and an exercise in the economics of the second-best. There are three lines of thought which could lead to a case for protection. The first one rests on dynamic scale economies, generated by learning effects. As Krugman recognizes, this is an elaboration of the old infant-industry argument known to Alexander Hamilton and to innumerable nineteenth-century German economists of the historical school. As it behooves the times, the argument is now presented in a sophisticated and algebraic fashion but its essence is similar to arguments used to defend official encouragement of import-substituting industrialization in Latin America. The second line of thought may be called the Manolescu thesis, in honor of the celebrated Romanian fascist economist. Everett Hagen refined this argument for protection, which rests on a wage distortion between urban and rural sectors in developing countries. A third line of argument, murkily foreshadowed in the writings of underground and peripheral economists, rests on the theory of strategic industrial policy.

The article discusses that franchising methods that emerged in the late years as significant strategy for business growth, job creation, and economic development both in the U.S. and the world markets. The franchisers are sorted as product-trademarked or as business format franchisers. The business format of franchising is anticipated to be dominant form of franchising internationally in the twenty-first century . However, the business format of franchising has been experiencing rapid growth in the U.S., the period of rapid international expansion of some U.S. franchisers increased their overseas units.

This article presents an analysis of link of state employment and training and economic development programs in the United States. Effectiveness of state economic development programs is contingent on successful coordination of traditional physical capital and human capital improvement activities. The major stimulant to better linkages has been the growing perception that the movement of physical capital is heavily influenced by the skills and educational levels of the potential workforce. The article focuses on examination of the degree to which states have attempted to link physical and human capital development programs and to explore the correlates of these state efforts. The study explores the political, socioeconomic, and programmatic correlates of state organizational efforts. The results show that states which have forged the closest linkages are those which are confronted by declining economies despite extensive state fiscal incentives in support of the private sector and in which governors have fewer constraints on their powers to impose organizational changes.

The simultaneous emergence of a technological and a political revolution offers the possibility of an enormous and widely distributed explosion in world trade and world output-if only people can take advantage of the new opportunities. This will produce a tendency toward convergence in economic capability on a world scale. Market and enterprise based policies lead not just to economic development, but to a rise in levels of education, so necessary for an individual's and a society's continued advancement; to an increased willingness to work, since work pays off; and to a willingness to save, since accumulated funds retain value and can be invested. Individuals gain wider choices of goods and services to buy in the market and of where and how to live. Their knowledge of conditions in other countries grows. The quality of their lives imposes. This adds up to greater individual independence, which in turn amounts to political change and leads to more open societies.

Development Economics deals with the structure and behavior of economies where output per head is less than 1980 $2,000. Whether this dividing line is somewhat too high or too low is of no significance in this context. A search for precision would cause economists to abandon dollars in favor of other indexes; like the proportion of the labor force required in agriculture to feed the whole population; or more nebulous measurements of entrepreneurial potential. However defined, Development Economics is said to be now in the doldrums, after a couple of spirited decades. It seems to be true that the subject has been deserted by American Ph.D. students. Their antennae tell them where to find the best jobs. In this contest, Development Economics no longer competes. Foreign aid has been cut, the multilateral institutions cannot keep up with the inflation, and the Ford Foundation has changed its priorities. At the graduate level, the subject still beckons only one group. The number of Third World students in the United States still runs high, and they are thirsty for the subject; so universities that admit a lot of Third World students continue to have flourishing teams of development economists.

This article analyzes the relation between industrial segmentation and men's intergenerational occupational mobility. Students of social stratification have turned their attention recently to the influence of structural factors on basic stratification processes. One variety of the new structuralism, labor market segmentation theory, emphasizes distinct labor markets defined by clusters of job characteristics. Another of the new approaches, industrial segmentation theory, posits a segmented industrial order composed of groupings of similar industries. Most recently, another perspective has emerged which focuses on the organization of work in specific firms or workplaces. The key structural components posited by industrial segmentation theorists are industrial sectors composed of industries. As products of uneven economic development, these industrial sectors are hypothesized to differ substantially in the organization of production and the organization of work. Writers in the dual economy tradition, for example, propose a two-sector scheme in which production in one sector is characterized by oligopolistic organization and in the other sector by competition.

This article argues that the public administration needed a "usable past that would bring to light buried aspects of its history and enrich discussions of social policy with administrative knowledge. Generally speaking, although male and female reformers, as middle-class activists, shared a desire to gain access to government power and reduce the influence of political machines, the men and the women pursued different strategies, with men advocating better administrative methods and women the invention and institutionalization of services to improve society, especially the lives of poor. The mid-to-late 19th century was a time when gender roles in America were more sharply divided than ever before or since. Process of industrialization had set in motion an ideological division of labor based on sex, as more and more men became wage laborers outside the home, women were seen as responsible for domestic duties, even when they, too, worked for pay out of financial necessity. Increasingly, women came to be seen as moral, self-sacrificing, dutiful, and domestic, while men were worldly, aggressive, and self-interested.

This article focuses on grassroots industrial policies that are to be implemented for the betterment of industries in the United States. According to the author, the last few years have witnessed a proliferation of books, journal articles, and symposia on industrial change and whether or not it threatens the well-being of the nation's economy. Industrial change is viewed as a crisis. The author feels that a greater degree of governmental intervention in the economy is required to resolve the crisis. The focus on grassroots industrial policy approach is a legitimate extension of the cycle theories of industrial change. Regions and localities should specialize in the production of commodities in which they have relative cost advantages. The author then addresses the issue of concern for grassroots approaches. He says that the grassroots approach should address three areas of importance. First, there should be local efforts to promote greater economic diversification so that the community will be less vulnerable to the business cycles. Second, labor and management should work closely to reduce conflict. The academic community can help by heightening the public's awareness of labor management issues and by providing a forum.

World based on spurs growth, with political and attached, ignores the key problems poverty and income distribution. A revolution is under way in U.S. development policy under Ronald Reagan. But it is not the dramatic unleashing of the private sector as the "stifling" hand of government is lifted from developing nations' economies; it is the growing mismatch between what is allocated and what is needed, and the fragmentation of policymaking toward developing nations at a moment when economic relations with them are entering a critical stage. These trends are not all new, but they have become more pronounced under Reagan. When Ronald Reagan took office, development policy was dominated by the philosophy that U.S. self-interest in the Third World was best served by attempting to reduce poverty, population growth, illiteracy, and poor health. growth, illiteracy, and poor health. Congress mandated this approach in its New Directions legislation of 1973, which required that U.S. development policy alleviate poverty; promote equitable growth; encourage individual.

The article focuses on the issues concerning the economic development and community-based planning efforts of policymakers in the U.S. Accordingly, the current economic development and planning efforts have been expected to be going a delicate but dramatic transformation. Some of the reasons for such activity include the abdication of the federal role in formulating a national urban policy as well as the declining of federal funding for local economic development initiatives. It has been emphasized that the condition of the economic development in the country will be a salient issue due to concerns on the mobility of capital, foreign competition, sectoral unemployment, as well as the ineffectiveness of short economic strategies to attract and retain business firms.

This article examines an experimental process called the Negotiated Investment Strategy (MIS). The MIS, a method for coordinating federal, state and local expenditures at the community level, has been tested in three midwestern communities such as Saint Paul, Minnesota, Columbus, Ohio, and Gary, Indiana. The article describes the assumptions, which underlie the concept, results of the three-city experiments and speculates on the potential of the MIS for restructuring local economies. Particular attention is given to evaluating the MIS as a process intervention, which could assist communities undergoing traumatic economic change.

Authors of leading U.S. textbooks in development economics are criticised for their inaccurate and insufficient socio-political analysis, ethnocentric approach to U.S. international involvement, lack of consideration of dominance and subordination within the international economic system (together with an underemphasis on the costs of foreign trade, aid and investment in LDCs), fallacious concept of 'traditional' society and economy, and inadequate perspective on Marxism. These flaws in the orthodox conception of the political economy of development are partially responsible for much of the difficulty that U.S. economists have encountered in trying to adapt successfully to the problems of lowincome countries. [ABSTRACT FROM AUTHOR]

During the 1980s two global cities New York City and London, England have shown a remarkable convergence in public policy and development patterns. The article analyzes the linkage between the pressures of world economic transformation, on the one hand and political and ideological forces on the other in determining the character of development in these two cities. London and New York are a particularly useful source for comparative study because their common attributes permit the identification of a limited number of variables to explain their differences. They both developed as great ports, their roles as centers of international trade and the requirements for financing that trade, caused them to become the locations of the world's most important financial markets. Each has been the financial capital of a dominant global economic power, and each faces increased competition from other world centers. It is further observed that the governments of New York City and London opted for the route of minimal planning, dampened participation and market distribution. These policies have contributed to highly uneven development, severe shortages of affordable housing, congestion and environmental deterioration.

By 1860 the northeast region of the United States which includes the cities of Boston, New York and Philadelphia was as fully industrialized as England. The rapidity with which this social process was! accomplished used to be explained by reference to `technological innovation'. The social reorganization basic to industrialization was presumed to be summarized by reference to a general mentality of `laissez-faire'. Thus, until recently, there has been little substantial challenge to the simplistic notion of egalitarianism implicit in the title "Age of the common man." The first major criticism of this approach demonstrated that until the 1840's planned development was considered a normal part of government functioning. However, neither work goes much beyond statistical categorizing of social groups arbitrarily defined. Consequently, idealism remains the unchallenged approach to the period, the new criticism having stimulated the search for mentality other than egalitarianism. Social history is thus reduced to various ways of describing and analyzing the evolving mentality of the petty bourgeoisie, usually referred to as Americans.

The article focuses on educational reforms aimed for productive change in the U.S. The American education system is facing the challenge of establishing a systematic network of change personnel within, between, and among institutions. Finding the appropriate mix of new ideas and workable methods is a difficult task. If the claim is theoretically sound that holistic missions provide opportunities to functionally combine discrete and isolated attempts at change, then the claim should suggest some practical applications.

Public policies are often made without much recourse to economic reasoning. Economists are often unaware of what is happening in the world of public affairs As a result, both the quality of public decision-making and the role that economists play in it are less than optimal. This new feature on current policy issues will offer short articles on topics that are on the current agendas of policy makers and provide nonspecialists with a better understanding of the role of economic analysis in illuminating current debates. Suggestions for future columns and comments on past ones should be sent to Isabel V. Sawhill, c/o Journal of Economic Perspectives, The Urban Institute. 2100 M Street N.W., Washington. D.C. 20037. [ABSTRACT FROM AUTHOR]

This paper compares the geographic dispersion of employment in manufacturing industries across U.S. metropolitan areas with an imputed measure of local industry demand. The results indicate that local demand has significant long-term and short-term location effects in many industries, including some with negligible transportation costs. Variation in location patterns across industries indicates that demand-side agglomeration economies and technological intensity strengthen the pull of local demand, while supply-side economies of scale and agglomeration effects weaken it. Implications are discussed with regard to international trade, technological change, industrialization and development, urban and regional issues, and industrial organization. [ABSTRACT FROM AUTHOR]

This study complements existing research on the contributions and rankings of female economists with a descriptive analysis of the prevalence of gender issues in U.S. economics journals. Assuming that labor economics and development economics are the fields most likely to examine gender issues, I compare the incidence of gender-related articles in the last decade in leading U.S. general economics journals with top journals in the labor and development fields. I also examine the gender composition of authors of gender-related articles in all journals. Results indicate that the highest ranked field-journals publish a higher percentage of articles on gender than do the leading general journals from among their labor and development papers. And unlike the common perception, a disproportionate number of the gender articles are written by men rather than women, particularly in the labor and general journals. The results suggest that departments that use publication in general journals as a proxy for overall research quality, and which do not consider alternative evaluations of research as potential full substitutes, may be using biased measures of the quality and importance of research on gender. The publication policies of general economics journals and the promotion policies of certain economics departments may have a direct effect in reducing both the number and perceived prestige of voices addressing issues of gender in economics. [ABSTRACT FROM AUTHOR]

The article discusses the book "The Big Ten: The Big Emerging Markets and How They Will Change Our Lives," by Jeffrey E. Garten. He offers a very well-informed viewpoint which he supports with both primary and secondary data. China instead of the U.S. will be selling tractors to Mexico, Poland, South Africa, South Korea, Turkey (BEM countries), and probably even to the U.S. Any piece of data viewed alone is simply informative, but when we evaluate all the data for each of the BEMs together in the context of big emerging markets, the data becomes frightening. U.S. dependency in terms of imports from the Association of South-East Asian Nations, the Chinese Economic Area, India, and Indonesia is much greater on exports. Garten evaluates the ten big emerging markets in terms of their potential as an opportunity for the U.S. given the economic data against the reality of their potential given the lack of industrialization as a result of political structures, population pyramids, educational structures, and financial markets.

This article focuses on the industrial relations systems of industrial cooperatives in the U.S., 1880-1935. Admittedly, the predominant form of workers' participation in management in the U.S. has been through the application of collective agreements rather than by sharing in the total management function. However, as Milton Derber has demonstrated, since World War II there have been modest expansions of collective agreements which oblige management to consult with union representatives before taking action. This gradual extension of positive union participation in management decision-making is likely to continue. From this vantage point, one may regard industrial cooperatives as a social experiment in "total participation," and investigate the experiment's effects on workers' productivity. Available historical records indicate that industrial cooperatives were established in a series of "waves," each wave corresponding to a different stage of industrialization. Nevertheless, there were common environmental forces that influenced potential cooperators and drove them to action.

The changing function of religion during the age of industrial development in the United States has of late attracted fresh attention. The workingmen's concept of Protestantism in an era of "rapid industrialization and radical social change," for instance, has been examined by Herbert G. Gutman, who is presently engaged in a study of the "shock of industrialization." The Catholics are not deserting the "down-town" districts of New York, nor are they seeking fashionable sites in any of the American cities. To their foresight in this respect is attributed, a large measure the extraordinary growth of Catholicism in the United States. The number of people in need of charity in the United States is very few in proportion to the whole population. They represent one extreme of the body politic; the millionaires and the wealthy class represent the other; and both are about equally numerous and of equal consequence as factors in building up a great nation and a superior race of men. The hope of this nation is not in either, but in the great middle class. The millions who toil on from year to year in the workshops and on the farms are the class whose calibre and development will settle the destiny of the United States.

This article discusses the Southern Lumber Operators' Association and unionism in Texas and Louisiana from 1906 to 1916. During the antebellum and immediate post-Civil War years, forest lands extending from the central and northern parishes of Louisiana, west into northeastern Texas, and south to the Gulf Mexico stood virtually untouched. The last two decades of the 19th century, however, witnessed the concurrent arrival of railroad transportation and large-scale lumber manufacturing which transformed the region from an economic backwater into a new land of opportunity. Unfortunately, this new-found prosperity reached too few as timber empires were carved out by northern and southern lumber companies, and company-owned towns came to dominate the area's economic, politics and social life. As corporate wealth increasingly made itself felt from the company-controlled municipality to the state capitol and beyond, those excluded from a full share in the rewards of industrialization voiced dissent through the People's Party and the Progressive movement, only to be disappointed in their bid for political voice and by-passed by legislative reforms.

This article discusses industrialization of the Southwest in the U.S. The outstanding economic problem of the Southwest is to increase the productivity of its labor force. An appreciable part of our labor force is not effectively employed. Inefficiency in the allocation of resources is indicated by the extraordinarily low level of income of the people of the Southwest. One of the reasons for the existence of a surplus farm population has been the continued decline in the total demand for farm products during the last 20 years. The slowing down in the rate of growth of our population has exercised a retarding influence on the domestic demand for food and clothing. An American-British-Chinese-Russian victory would probably result in our regaining some of the lost foreign markets for our farm products although lower post-war tariffs might result in the South American neighbors offering more competition in some of the farm markets. The greatest gain from increased post-war foreign trade would result from the fact that such gain will increase non-farm employment opportunities and thus facilitate a transfer of workers from agriculture to non-farm jobs.

This articles looks at the industrialization of the Southwestern region of the United States. The social significance of industrialization, its spread during the last two decades in the region, and the insufficiency of its scientific treatment specifically for these states, justify a general discussion of the industrialization of Arkansas, even though the results be negative in nature. Such a discussion involves an appraisal of past developments in the state, a cross-cut view of present conditions, and a forecast of future possibilities. Exactitude of thought may be promoted by using the word industry to denote manufacturing, and by including as factories only those establishments embraced by the federal census of manufactures. The first two of these tasks are naturally much less formidable than the last, although even here, because of the paucity of dependable data relating strictly to Arkansas, the task is not easy. As it doubtless true of other states, very little study of a scientific sort has been made. Needless to say, the scantiness has not been much improved by dissemination from propaganda sources of a mass of half-truths or positively erroneous information. Reliance must be placed in the main, therefore, upon the federal censuses, a limited number of state reports, and first-hand information.

This article deals with civic organization of Mexican Americans in the Rio Grande Valley region of Texas. During the past fifteen or twenty years parts of the region under consideration have undergone remarkable economic development. Here irrigation or improved methods of agriculture have been introduced, new towns and even cities have grown up. A large element in the population of all these municipal centers consists of the Mexican-American citizen and every town has its "Mexiquito." Here had developed a considerable middle class among these people. They have profited from the superior educational and economic advantages thus afforded as well as from contacts with the new settlers who have poured in from all parts of the Southern and Middle Western United States. True enough, many of these city dwellers of Mexican extraction have remained ignorant and are constantly drawn to the newly arrived Mexican immigrants who help fill these Mexican quarters, but the fact remains that there has arisen in their midst a class of prosperous, educated citizenry whose living conditions and attitudes compare favorably with American standards. Albeit, old evils have reasserted themselves in these urban communities among the less advanced majority with the result that racial inequalities and ward politics of a more urban character have been fairly prevalent.

This supplement comments on an article written on Richard T. Ely who contributed immensely in the origin of the magazine "Land Economics." The original article was in two parts. The first part of this essay is a selected summary from Ely's letters to his family while he was a graduate student in Germany, 1877-1880. The ideas, experiences, activities and personal contacts which are set forth throughout this article were chosen for their significance in foreshadowing some facets in the development of Ely's American career. The second part of this supplement is made up of some comments and observations by this writer based on a skimming review of selected course lecture notes, outlines, or hand-written manuscripts from the Ely Papers. Judging from Ely's family letters there were several high points of his work at Heidelberg. Two writings by Ely, one called a "treatise" and the other an "essay," plus reading for his doctor's examination in March 1879, fully occupied the aggressive student from the time of his arrival in Heidelberg in May 1978.

It is a thesis of this paper that recreational demand by urbanites offers a major, if not the major, economic opportunity for revitalization of certain rural areas of the country. Certain principles that should be considered in developing the recreational possibilities of a nonurban region are reviewed. For purposes of illustration these principles will be applied to a major area of rural "depression"—an area that the authors have been working with for a number of years. This area extends as a crescent from the Appalachians through the Ozarks along the axis of the Ohio River. It includes the hill-lands of Southern Ohio, Indiana, and Illinois and of Kentucky, Tennessee, Missouri, and Arkansas. Thus, it might appropriately be called the "Eastern Roughlands. [ABSTRACT FROM AUTHOR]

A great search is under way to try to unravel the problems of economic growth of the poor countries. As if this problem were not. difficult enough we do not completely understand the experience of the past growth of the rich countries such as the United States. When changes in the inputs—capital, land and labor—are related to increases m output there is a troublesome residual which is left unexplained. What is the missing ingredient? As one might expect, there are many candidates. A prime contender is technological change. The concept both explains too much and too little. It is largely a name for a residual and we little understand just how technology is generated and becomes embedded in the general workings of an economy. This has not kept us from moving ahead with huge technical assistance programs for the poor countries. However, the limited success of these programs is related to our lack of knowledge of the dynamics of technological adoption. A variation on the technological change explanation of growth is changes in the quality of human capital. This is the solution emphasized by T. W. Schultz and others and it leads to great emphasis on investment in education. [ABSTRACT FROM AUTHOR]

The article presents information about various developments in the field of economics. The forty-third annual meeting of the American Economic Association will be held in Cleveland, Ohio, during December 29-31, 1980, with headquarters at the Hotel Cleveland. On April 18 and 19 a conference on the teaching of undergraduate courses in the social sciences was held at Northwestern University, Chicago in Illinois. One hundred and thirty-one instructors in economics, history, philosophy, political science, psychology, sociology and anthropology were in attendance, representing fifty-six colleges in the Middle West. The Indiana Association of Economists and Sociologists held a conference on May 9-10 at Indiana University. A round table on college economics considered the purpose and content of the course in elementary economics. This was led by economist W.V. Owen of Purdue University and E.R. Beckner of Butler University. An affiliation between the University of Nanking and the Institute of Research in Land Economics and Public Utilities of Northwestern University has just been consummated. Recently a member of the staff of the Institute left for Nanking, China, to participate there in the land utilization-population research planned by the department of agriculture of the University of Nanking.

The article evaluates the history of transportation in relation with economic developments in the U.S. The first period of transportation history deals with the use of saddle horse trails. Cargoes were carried to sea on rivers and floated across on dredged streams and canals. Then the mode of transport has progressed to the use of steam engines and gasoline motor. In the economic discussion of highway problems, the guiding principles are created for the development of programs on highway taxation and expenditure.

The article provides a detailed discussion on the field of economic history. The author states that it has been observed by them in the study of economic history that economists are primarily concerned with topics related to recent developments while historians are preferably interested in specialization in some period of history. The study of past has been belittled by a distinguished American economist. He believes that present institutions have not grown out of the past but have emerged from the needs developed in modern times.

The U.S.A. alone can trace its history of planning to the constitutional period of political planning and the Hamiltonian industrial development economics of the late 1700's. There were earlier distinctive illustrations of contemporary planning, as in Australasia and Scandinavia. If not for their complete success, then by virtue of their interesting linkage, European, Russian, and American planning systems are worthy of comparative study. In fact, unlike other administrative innovations in the contemporary nation-state, planning is peculiarly susceptible to international imitation despite some distinctive national variations in style and scope. The actual history of New Deal planning is cloaked by the fact that many American historians regard the war period as a dramatic aberration and contend that the New Deal died in 1939 after suffering various political defeats in 1938. If the New Deal did die, and that is still an open question-its demise may be more precisely dated 1943, when, along with other belligerencies.

With somewhat more plausibility, scholars have been speculating for some time that they should be able to transfer back to the domestic scene the experience gained in our technical assistance and economic development programs abroad. The problems of housing and race relations and urban development to which they are now turning their attention call for technological skills, and competence in organization at the community level. But they also call for the kind of effort in which the federal government must deal with a number of other governments that it can influence but not control, no single federal department can have a monopoly of any function; coordination in the field is essential, but the establishment of any fully authoritative coordinator is prevented by jurisdictional conflicts in Washington, the coordinators themselves are difficult to coordinate, and success or failure will be difficult to establish by objective measurements. One of the most interesting points in this lesson is that it suggests they have not diagnosed accurately the nature of our administrative ailments.

How A country administers its economic diplomacy depends on how it sees its foreign policy purposes. Countries with little weight in the world power structure necessarily see those purposes defensively-to make known and defend their interests narrowly construed. Thus, the United States national interest has embraced the economic reconstruction and integration of Western Europe, the economic development of the poor countries of the world and the creation and support of inter- national and regional economic institutions for consultation, cooperation and the peaceful resolution of conflicting economic interests. The advanced countries of Europe and Japan have a narrower view of their role in the world, and their economic diplomacy has reflected that narrower view. Theft priority in economic diplomacy has tended to be export maximization and contract-getting. By contrast and in keeping with the world leadership responsibilities that our circumstances and our security require, the State Department has a strong voice in all aspects of foreign economic policy.

Water and related land resources management is clearly a major area within the total scope of the new environmental management envisioned by the new conservation-not to mention the new regional economic development of the Public Works and Economic Development Act, and the new focus upon the coastal zone of the National Council on Marine Resources and Engineering Development. As a public function in substantial part water and related land resources management has been with people since the founding of the republic and several of that management's present basic concepts are the product of the traditional conservation movement. Opportunities for complementarily of action, acting like a centripetal force, provide incentive for use of related resources for two or more purposes jointly because benefits can often be obtained at less cost than if their fulfillment were achieved separately. Because conflict breeds inaction that is detrimental to most interests, there is incentive to compromise to reach agreement.

The article analyzes economies as an antitrust defense. According to the author, Once economies are admitted as a defense, the tools for assessing these effects can be expected progressively to be refined. Since such refinements will permit both the courts and the enforcement agencies to make more precise evaluations, the threshold value under which an economies defense will be allowed can be reduced accordingly. The historical organization of an industry can ordinarily be presumed to reflect adequately basic efficiencies where significant market or technological developments have been lacking. And even where such recent changes have occurred, an efficiency defense is not automatic. Further more, if an efficiency defense can be supplied, market power consequences that a vertical merger produces need also to be considered. There is no way in which the tradeoff issue can be avoided. To disallow tradeoffs altogether merely reflects a particularly severe a priori judgment as to net benefits.

The article focuses on the growth and development of economy with technological changes. A more recent and presumably more reliable set of data fitting the theory presented in this article is found in John W. Kendrick's study of productivity trends in the United States. It is not possible to present all empirical data which would be relevant; instead, the study limits itself here to a rather randomly selected and not always overly rigorous set of observations. Also, it must be kept in mind that any such observations can never provide a proof of the validity of the theory. They can only, to the extent that patterns consistent with the theory are observed, strengthen the hypothesis that the theory is an adequate one, and, to the extent that inconsistent patterns are observed, refute the theory's validity, or, more constructively, suggest possible improvements or alterations. The theory presented in the article yields an explanation of a lasting state of expansion where capital must grow faster than the labor force and where, as a consequence, income per capita must grow.

In the great revival of interest in economic development in the U.S. that has marked the past decade, attention has centered on two main questions: the determining factor of the over-all rate of economic advance; and the optimal allocation of given resources to promote growth. Analysis of the growth rate has relied mainly on the Keynesian tools and has produced a multiplicity of aggregate growth models. In the field of resource allocation, controversy centers around the implications of the classical principle of comparative advantage, according to which growth is promoted by specialization. The present paper discusses the analysis of resource allocation in less developed economies from three points of view. One section tries to ascertain the extent to which the allocation principles derived from trade theory and from growth theory can be reconciled with each other without losing their operational significance. Another section compares various approaches to the measurement of optimal resource allocation in terms of their logical consistency and their applicability to different conditions. One section examines some of the practical procedures followed in setting investment policy in underdeveloped countries in the light of the earlier discussion. Some of the theoretical issues are re-examined to indicate their practical importance.

The Committee for Economic Development has decided to set up a national monetary commission in the U.S. Need for a monetary commission has been felt for very long time. The author discusses agenda and elaborates problems to be studied by the commission. The commission's financial structure has been the central theme of the discussion. The commission's interest in the financial structure may usefully be divided into two parts. One part is concern with the relations of the financial structure to the over-all level and stability of the economy, essentially with aggregate demand effects. The second part is concerned with effects of the financial structure upon the allocation of capital among intermediaries, users and uses.

The article presents views of various economists on the Committee for Economic Development (CED). According to Milton Gilbert the organization stands well in front among business groups in stimulating open-minded interest and discussion about basic economic problems. Its thinking has not been timid or confined to well-worn grooves. It has initiated a research program that can already be seen to be a substantial contribution to postwar policy formation: Even in the relation it has established between social scientists and businessmen, the CED's approach has been novel and progressive. According to John H.G. Pierson, his suggestions relates to the manner in which the CED might utilize all available quantitative data bearing on the relationship between aggregate dollar volume of demand for products, aggregate employment and price and wage levels and also if the CED finds itself in agreement with the labor force computations currently in use in Washington, it may wish at this point to revise its quantitative formulation of the employment target at which business should shoot.

SUMMARY This paper examines the source of variation in the capital coefficient for the United States private business sector during the 1909-1959 period. These sources are the composition of capital, the age of capital, and the nature of technological progress. In the multiple regression and correlation analysis, these sources are measured by the ratio of plant to equipment, the weighted average age of the stock of capital, and a proxy time trend, respectively. The regression equations provide a high degree of explanation of the variation in the capital coefficient. The significant correlations involve the average age and the nature of technological progress in the 1923-1941 period and the plant-equipment ratio and the nature of technological progress in the 1946-1959 period. In both periods the correlations between the time trend and the capital coefficient indicate that capital-saving technological progress is the most impor-tant factor contributing to the secular decline of the coefficient. In the earlier period, the capital-saving bias to technological progress is reinforced by factors associated with the rising age of capital, while in the postwar period the falling plant-equipment ratio tends to offset it somewhat. However, it appears that the intensity of the capital-saving bias may be higher in the post-war period than in the 1923-1941 period. The implications of the falling capital coefficient for equilibrium growth are examined in terms of the Harrod-Domar model. Since a capital-saving bias in technological progress tends to cause the rate of growth of productive capacity to exceed the rate of growth of aggregate demand, it is suggested that the nature of technological progress may be one of the factors contributing to the secular GNP gap for the United States since 1958. [ABSTRACT FROM AUTHOR]

This article evaluates trading in a threat system through the examination of the relation between the United States and the Union of Soviet Socialist Republic. The article aims to outline the logical structure of the policy problems concerning the intensification of U.S.-U.S.S.R. commerce in the late 1960s and early 1970s. The modifications needed to apply the analysis to other dyads would be minor in some cases, substantial in others. Since assumptions have been selected in such a way as to direct the analysis to the contemporary U.S.-U.S.S.R. trade policy problem, some kinds of possible commercial interaction between the U.S. and the U.S.S.R., such as grants-in-aid, untied development loans, and most kinds of trade warfare, have been excluded from consideration. In the first place, the analysis is conducted almost entirely in terms of a two- country, three-commodity situation. Both of the countries are assumed to be heavily industrialized and to have fairly well balanced economic development as far as all intermediate stages of production are concerned.

This article discusses employment implications of India's industrialization. This article presents estimates of the sectoral direct and indirect employment potential of the 77 sectors of the input-output table. The static input output system is used to arrive at these estimates. No attempt has been made to discuss the problem of choice of techniques; however, the problem of product or output mix has been taken into consideration. The sectors are agricultural and create substantial employment per unit of final demand. Increase in the consumption of the products may not be acceptable due to its impact on capital accumulation. The conflict between present and future consumption and its impact on employment is clearly demonstrated. It should also be mentioned here that it may not be correct to hold the view that agricultural sectors are incapable of generating substantial employment. Among these nine sectors there are two key sectors, viz, metal products and petroleum products. Both these sectors are nonagricultural. The other seven sectors are characterized by poor forward linkages but strong backward linkages.

It is generally believed that foreign capital inflows play a strategic role in promoting progress toward self-sustained growth in developing countries. Yet the relationship between the two has received little rigorous analysis in the voluminous literature on economic development. The Foreign Assistance Act of 1961 enunciated the criterion of self help as a condition for United States foreign aid, but the appealing self-help shibboleth has not been given analytical content. The purpose of an international program of aid to underdeveloped countries is to accelerate their economic development up to a point where a satisfactory rate of growth can be achieved on a sell-sustaining basis. Thus, the general aim of aid is to provide in each underdeveloped country a positive incentive for maximum national effort to increase its rate of growth. Raising the equity problems in these terms suggests that there is a conflict between self-help and equity criteria for foreign assistance allocation. The self-help criterion, therefore, implies a recognition of fundamental economic disparities among countries.

One of the major issues in development economics is whether dependence on the export of one or a few primary products--a characteristic of less developed economies--tends to promote or retard the economic development of these countries It is alleged on the one hand that through various multipliers, linkages, demonstration, and leakage effects, such primary-product exports act positively; and it is argued, on the contrary, that through instabilities associated with fluctuations in primary-product prices and because, perhaps, of some inherent inferiority allegedly associated with primary production, concentration on such production retards development. The predominant attitude in the less developed countries, judging by the economic policies they pursue, is one of distrust of dependence on primary production. This skeptical view is supported by reference to such examples as rice in the case of Burma and tin in the case of Bolivia. In this paper we set up a model indicating a possible method of measuring the effects of staple production upon per capita income, and apply that model to make the indicated measurements for a classic staple period, that of the wheat boom on the Canadian prairies between 1901 and 1911.[3] Our finding is that, even under the most generous interpretation of "wheat boom" and the most favorable assumptions about the magnitude of its effect, that effect could have amounted to no more than 8.40 per cent of the total increase in per capita income during the period; under a less favorable, but more reasonable, set of assumptions the effect was only some 5.20 per cent of the rise in per capita income. [ABSTRACT FROM AUTHOR]

This article focuses on the economic policy of the U.S. and the problems of developing countries. In the international sphere, the establishment of the common market has prompted a rethinking of the U.S. position in relation to Europe and has evoked basic changes in the U.S. commercial policy, expressed in the passage of the Trade Expansion Act. The U.S. thus faces an international political situation that will oblige it, and that in the not very distant future, to make concessions in its policies toward the developing countries, with the pressure both of their demands and of competition with the European countries. The U.S. policy in assisting the development of the less-developed countries has been based, ever since the commitment to such assistance was first undertaken, on the principle of giving capital grants and loans to the less-developed countries, coupled with various types of technical assistance in making effective use of the aid. In the early years of thinking about and planning for the economic development of the less-developed countries, the U.S. emphasis on capital transfers and technical assistance meshed very closely with the prevailing ideas on what the development problem consisted in.

This article presents information regarding the analysis of fertility changes in the U.S. According to the theory of demographic transition, the demographic transition of the West would be followed in its essentials in societies currently undergoing industrialization. So far, this prediction has not been borne out in such developing countries as India or Egypt, and it appears to be questionable whether industrialization is the only determinant. The analysis in this study is primarily ecological, though not in the sense of presenting state-to-state comparison of the level of the demographic and socioeconomic characteristics. Rather, changes in the dependent and independent variables are compared cross-sectionally. Since the conclusions are from the observations of the changes in the variables, this procedure is expected to yield results which are theoretically more appropriate for causal interpretation. The changing patterns of fertility suggest that they may be associated with the changes in certain socioeconomic variables in the states.