The Australian Bureau of Statistics provides population estimates of Statistical Local Areas annually. The accuracy of these estimates can be assessed after population estimates are rebased after each quinquennial Census of Population and Housing, however there appears to be no straightforward method of assessing these estimates. Errors that occur with population estimates can be attributed to several factors, both broad and specific to individual areas. These factors include inherent characteristics of the region, such as population size and growth rate; changes in the geographic boundaries; quality of input data; estimation method; and adjustments to control totals (state populations).

Assessing the accuracy of Australia’s small-area population estimates

THE TERM universal discount, abbreviated u.d., is used to indicate that a percentage discount (or a percentage bounty if the discount is negative) applies to all payments. Thus, payments for wholesale, retail, and producer goods, payments for capital stock, bonids, debts, dividends, interest, rent, and taxes, payments for wages, salaries, and fees; in short, all transfers of funds where the control of the funds is also transferred are included. Transfers of funds where storage is intended and the control of the funds is not altered, as in the case of bank demand deposits for example, would not be considered payments and would not carry the u.d. It is shown that in a model economic system roughly representative of a free economy the u.d. adjusted according to a simple formula removes instability. There is reason to believe without reference to this particular model that the same u.d. adjustment would be a powerful stabilizing influence under actual conditions. Fortunately, since the adjustment would raise (lower) prices when they are tending upward (downward) there would apparently be no serious policing problem in the enforcement of the u.d. adjustment. Since the u.d. changes prices, wages, rents, interest, fees, taxes, etc. all by the same ratio, there is no direct effect of the u.d. on real income as measured currently. Stating it differently, those with unchanging monetary reserves are not directly affected by the u.d. Consequently the introduction of the u.d. for stabilization purposes would involve significant loss only to those who persist in contributing to instability. Conversely only those contributing to stability would be rewarded. The latter would aid sections of an economy that are hard pressed by business-cycle changes. For example, during a rising price level the shrinkage of real income of those on a fixed money income would be reduced. With the u.d. method, such devices as ordinary price control, control of investment, tax-rate variation during the phases of the business cycle, active monetary policy, government spending, would be unnec-

J. G. Baker

Papers

The Universal Discount as a Means of Economic Stabilization