Showing papers on "Stock (geology) published in 1969"

The Adjustment of Stock Prices to New Information

Abstract: There is an impressive body of empirical evidence which indicates that successive price changes in individual common stocks are very nearly independent. Recent papers by Mandelbrot and Samuelson show rigorously that independence of successive price changes is consistent with an "efficient" market, i.e., a market that adjusts rapidly to new information. It is important to note, however, that in the empirical work to date the usual procedure has been to infer market efficiency from the observed independence of successive price changes. There has been very little actual testing of the speed of adjustment of prices to specijc kinds of new information. The prime concern of this paper is to examine the process by which common stock prices adjust to the information (if any) that is implicit in a stock split

An Analysis of the Determinations of Geographical Labor Mobility in The United States

Abstract: HE objective of this study is to estimate T the magnitudes in which each of several factors influenced interstate migration over the period 1955-1960. Several variables were chosen which might reasonably be expected to explain the movements which occurred, and multiple regression analysis was used on the data. The most unique explanatory variable employed is the "migrant stock," i.e., the number of persons born in state i (the origin state) and living in state j (the destination state).' It is shown that the failure to include the migrant stock variable in the estimated relationship causes the true direct effect of most other variables to be obscured.

Investor Experience with New Stock Issues

Abstract: (1969). Investor Experience with New Stock Issues. Financial Analysts Journal: Vol. 25, No. 5, pp. 73-80.

Validation of Consumer Financial Characteristics: Common Stock

Abstract: This study of the accuracy with which people report holdings of common stock was carried out by the Bureau of the Census with institutional cooperation as a sequel to the Federal Reserve Board Survey of Financial Characteristics (SFC) of 1963 using the same interviewers and identical field and data processing procedures. The results indicate substantial nonreporting of stock ownership, which represents a major source of bias. Nonresponse is positively related to economic status, and holdings reported by the respondents were less than those of the nonrespondents. The size distributions of stock holdings are biased. Perhaps most important, estimates of variances and of confidence intervals computed by the usual standard error formulas are invalid as applied to mean holdings of the total population.

Real and monetary determinants of state and local highway investment, 1951-66

Abstract: THE HYPOTHESIS IS INVESTIGATED THAT THE TIMING OF STATE AND LOCAL GOVERNMENT CAPITAL OUTLAYS DEPENDS ON THE DIFFERENCE BETWEEN THE ACTUAL AND THE EXPECTED INTEREST RATE. THIS HYPOTHESIS IS FORMALIZED IN THE STOCK ADJUSTMENT MODEL IN WHICH THE ADJUSTMENT COEFFICIENT VARIES WITH THE DIFFERENCE BETWEEN THE ACTUAL AND THE EXPECTED INTEREST RATE. A STOCK ADJUSTMENT MODEL WITH A VARIABLE ADJUSTMENT COEFFICIENT WAS SET UP TO EXPLAIN STATE AND LOCAL GOVERNMENT CAPITAL OUTLAYS FOR HIGHWAYS FROM 1951 THROUGH 1966. THE MODEL IS DESCRIBED BY FIVE EQUATIONS WHICH EMBODY THE IDEA THAT CHANGES IN MONETARY POLICY CAUSE UNEXPECTED CHANGES IN INTEREST RATES THAT AFFECT THE SPEED OF ADJUSTMENT OF THE ACTUAL TO THE LONG RUN EQUILIBRIUM STOCK OF HIGHWAYS. THE ADJUSTMENT COEFFICIENT EQUATION MEASURES THE RATE AT WHICH STATE AND LOCAL GOVERNMENTS ADAPT THE ACTUAL STOCK OF HIGHWAYS PER HEAD TO ITS LONG RUN EQUILIBRIUM LEVEL. ONE TERM IN THIS EQUATION MAKES ALLOWANCE FOR THE FACT THAT UNEXPECTED CHANGES IN INTEREST RATES AFFECT THE TIMING OF DECISIONS ON INVESTMENT EXPENDITURES BY AFFECTING THE TIMING OF BOND SALES. TO TEST THE VALIDITY OF THE VARIABLE ADJUSTMENT COEFFICIENT HYPOTHESIS, IT IS NECESSARY TO MAKE AN ASSUMPTION ABOUT HOW STATE AND LOCAL FINANCE OFFICERS MAKE MUNICIPAL BOND RATE FORECASTS. EQUATIONS EMBODYING TWO THEORIES OF THE EXPECTED INTEREST RATE WERE TRIED. IT IS CONTENDED THAT IN THE PERIOD UNDER STUDY, THE INTEREST RATE DID NOT AFFECT THE LEVEL OF THE DESIRED CAPITAL STOCK. PERSONAL INCOME WAS USED AS A PROXY FOR THE DEMAND FOR TRAVEL BECAUSE IT INDICATES THE DEMAND FOR HIGHWAY SERVICES INDEPENDENTLY OF THE ACTUAL CURRENT STOCK OF HIGHWAYS. PERSONAL INCOME AND FEDERAL AID ARE TWO COMPONENTS WHICH APPEAR SEPARATELY IN THE DESIRED CAPITAL STOCK EQUATION BECAUSE EACH HAS A DIFFERENT IMPACT ON THE LEVEL OF PLANNED CAPITAL OUTLAYS. TEST RESULTS STRONGLY SUPPORT THE PRINCIPAL HYPOTHESIS. TABLES SHOW THE REGRESSION COEFFICIENT ESTIMATED WITH THE VARIABLE ADJUSTMENT COEFFICIENT MODEL THAT BEST EXPLAINS THE DATA, AND THE IMPACT OF CHANGES IN MONETARY POLICY ON THE LEVEL OF STATE AND LOCAL HIGHWAY INVESTMENT. IN THIS MODEL THE IMPACT OF A CHANGE IN MONETARY POLICY DEPENDS ON TWO THINGS: (1) THE SIZE OF THE UNEXPECTED CHANGE IN THE INTEREWT RATE, AND (2) THE SIZE OF THE GAP BETWEEN THE ACTUAL AND THE LONG RUN EQUILIBRIUM CAPITAL STOCK. THE MODEL IMPLIES THAT IF THE MONETARY AUTHORITIES SHOULD WANT TO DELAY EXPENDITURES FOR SEVERAL YEARS, THEY WOULD HAVE TO INCREASE INTEREST RATES CONTINUALLY.

Multiple adjustable stock

Abstract: Means for adjusting one of a pair of stocks both vertically and laterally to bring it into exact alignment with the other stock.

The Short-Run Stability of Velocity and the Autonomous Spending Multiplier, 1946-1962

Abstract: During the postwar period increasing attention has been given by economists to the relative predictive ability of alternative economic models (Friedman and Meiselman, 1963, pp. 165-267; Hester, 1964, pp. 364-68; Friedman and Meiselman, 1964; Ando and Modigliani, 1965, pp. 693-728; DePrano and Mayer, 1965, pp. 729-52; Friedman and Meiselman, 1965; Macesich, 1963, pp. 368-90). In particular, economists appear divided into two general groups. In one group are those who adhere to the incomeexpenditure approach and maintain that the role of changes in the stock of money is primarily one of causing changes in "the" rate of interest, with the consequent effect on autonomous spending which is connected to "the" rate of interest through the marginal efficiency schedule. In this approach, the stock of money is assigned a subsidiary role in the process of economic change. In the other group are those economists who subscribe to a more direct link between changes in the monetary stock and changes in income and output. This view holds that, owing to an effort on the part of individuals and firms to adjust their asset "portfolios" comprising both physical assets (including, perhaps, consumer durables) and financial claims in response to changes in their money balances, changes in the money stock will operate through the relative price mechanism and cause changes in flow variables, in the level and composition of product, and in the supply and demand for factors of production. Since changes in the stock of money produce changes in a wide range of interest rates reflecting the yields on all classes of assets, many of which are implicit and therefore unmeasurable, it is more appropriate to concentrate analysis on the relation between changes in the stock of money and changes in a wide range

The Level of Stocks in British Manufacturing Industry

Abstract: This paper discusses the hypothesis that the level of stocks held in British manufacturing industry is higher than it needs to be for efficient operation. The principle evidence relates to a comparison of U.S. and U.K. stock levels in relation to their optimum levels. After considering several possible explanations it is concluded that the evidence is consistent with the hypothesis.

Non‐convertible preferred stock as a financing instrument 1950–1965: comment

Abstract: IN A RECENT STUDY of nonconvertible preferred stock financing during the period 1950-1965, Professors Donald Fischer and Glenn Wilt find that there are three primary reasons for issuing nonconvertible preferred stock These reasons, listed according to their degree of importance, are as follows: (1) to provide secondary financial leverage, (2) to improve the borrowing base, and (3) to maintain balanced capital structure They state that the first reason is of primary importance to utilities because it enables them to increase the rate of return to common equity which is necessary to compete successfully with unregulated companies for common equity capital They also report that the third reason is mentioned only by financial managers of utility corporations Their study is based on correspondence with forty corporate financial managers, who are responsible for more than seventy issues, and on interviews and correspondence with some investment bankers As to the future of nonconvertible preferred stock, they suggest that a change in corporate income tax to allow the tax-deductibility of preferred dividends might result in a dramatic increase in the use of preferred stock financing' A study based on a larger sample shows different priorities of the reasons for issuing nonconvertible preferred stocks2 The findings, classified by industry and reason, are shown in the following table The table shows that the chief reason for issuing nonconvertible preferred stocks is to maintain balanced capital structure, in contrast to the report of Professors Fischer and Wilt, who rank this factor third in priority The findings in the larger sample seems in accord with the goal of an optimum financial plan-a plan that reflects sound financial proportions and minimizes the cost of capital to the particular corporation under study The coauthors state that this reason is mentioned only by managers of utility companies Although it is most important to utilities because,

Is Earnings Seasonality Reflected in Stock Prices

Abstract: In Stock Prices? THE purpose of this paper is to ascertain if strong seasonal elements in the demand for a firm's products, which produce seasonal patterns in quarterly earnings, cause seasonal stock pirice movements. That is, do investors recognize the seasonal factors inherent in a firm's environment, as reflected in quarterly earnings, to the extent that these earnings do not generate seaso-nal stock price movements? Although a number of studies have investigated seasonal variations in stock prices, little academic work has been done on the effect of seasonal earnings patterns on stock price movements.'

Reply: A Note on the Estimation of Long-Run Relationships in Stock Adjustment Models

Abstract: In their comment on my study of long-run and short-run demand for money (1966), Taylor and Newhouse (1969) have raised methodoligical questions which are of interest in the estimation of long-run relationships in stock adjustment models. In this note, I will attempt to answer these questions for stock adjustment models in general, using the demand for money as an example. In a stock adjustment model, one begins with a long-run relationship such as

Die staatsausgaben in der makroökonomischen produktionsfunktion

Abstract: SUMMARY In this article the author introduces the government investments into a modified Cobb-Douglas production function. These government investments and the corresponding outlays of the private sector of the economy are divided into a public capital stock and a tertiary capital stock (the immaterial capital). These stocks are introduced into the production function in addition to labor and the private capital stock. Then the different time-lags between the income-effect and the capacity-effect are considered. In order to cope with the problems arising from the use of an analysis of regression, empirical investigations generally use the production function in the linearized form, for which the rates of increases are calculated. At the same time the problem of how to find realistic statistical weights (elasticities of production) arises for the new explaining variables. The author proposes two methods and calculates one (hypothetical) example. Following is a discussion of some empirical problems (time-lags, estimations of the capital-stock, elimination of fluctuations in the use of capacity, etc.). The results suggest strongly that the introduction of government investments into the macro-economic production function is useful tool to reduce the residual factor F.