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The classic 1955 paper of Lorie and Savage has stimulated the development of mathematical programming approaches to the analysis of capital budgeting problems. A problem that they considered has been succinctly stated as:
given the net present value of a set of independent investment alternatives, and given the required outlays for the projects in each of two time periods, find the subset of projects which maximizes the total net present value of the accepted ones while simultaneously satisfying a constraint on the outlays in each of the two periods.
The purpose of this study is to develop and estimate sectoral demand for money functions and an aggregate supply function for money within the framework of a simultaneous-equations model of major United States financial markets. The study is exploratory in nature in several respects. The final form of the behavioral equations is, of course, open to question. Also, the data used in the estimation of the behavioral equations have recently been revised by the Flow of Funds Section of the Federal Reserve Board.
The purpose of this paper is to construct a model for the computation of an optimal cash balance for a bank, although it could be adapted to any organization. By a bank we mean to include both commercial banks and savings banks (mutual savings banks and savings and loan associations). One might also be able to adapt the model to an “international bank” such as the United States holdings of gold and foreign exchange.
The Sharpe model of capital asset pricing under conditions of risk has received wide theoretical acclaim and empirical support. This paper presents an econometric study of the model with the following objectives: (a) to show the effect of measuring the model's independent variables incorrectly; (b) to derive and use a new procedure for empirically testing the adequacy of the model as it is currently formulated.
Part of the eighteenth-century Spanish crown's attempt to restore national power through the promotion of trade and manufacturing was a campaign to eradicate the aversions of the nobility toward commerce and industry. Don Juan de Goyeneche was most often held up as the model of what the state expected of its noblemen. But Professor Callahan concludes that Goyeneche's significance lies more in symbol that in accomplishment.
Prepared for the Brazilian Ambassador to the United States, this document is a review of all foreign investment in that South American nation in 1935. However, as Mr. Berson points out in his introduction, omissions are just as important as inclusions, especially in light of the trade and commerce treaty then being negotiated between the two countries.