Showing papers on "Stock (geology) published in 1974"

An Optimal Program for Managing Common Property Resources with Congestion Externalities

Abstract: The purpose of this paper is to derive an optimum program for managing a common-property natural resource-fish, fowl, and some groundwater resources-whose rate of growth of the resource stock depends on the resource stock level and the current rate of "extraction." Looking forward in time, the dynamic property of this problem is provided by the fact that an instantaneous increase in the natural stock of a resource forever increases the physical productivity of that resource, while the externality aspect is of course inherent in the common-propertyness assumption. Congestion externalities arise from a specification of the aggregate production function which implies interdependent microproduction functions. It will be shown that if the resource stock initially is sufficiently small it will be socially optimal to have a period of no extraction. When extraction begins, it and the variable factor increase faster than the resource stock is increasing. Charges reflecting the imputed marginal social value of the resource are a decreasing function of the level of the stock. These results differ from Vernon Smith's recent static treatment of the same problem (Smith 1968)1 and are discussed below.

Common Stock Performance and Inflation, An International Comparison

Abstract: Several recent studies have questioned the long-held view that stocks are a good inflation hedge.' First, Alchian and Kessel2 found that corporations which were net monetary debtors3 experienced an increase in their equity value greater than that of net monetary creditors. Thus, debtor companies provide better inflation protection than do creditor companies. In a second study, Reilly, Johnson, and Smith4 considered market performance during five periods of rapid inflation. They found that the average real return on stock (using several well-known stock indexes) was negative or below the long-term average return in each of the five periods. Two of the periods, however, began during expansions and ended during recessions; two began during peacetime and ended during war; and one straddled the 1967 credit crunch. Thus, noninflationary factors may have caused the poor performance. In a third study, Keran5 found that inflationary expectations depressed stock prices (as measured by Standard and Poor's 500). If stocks were considered a complete inflation hedge, inflationary expectations would not depress their prices. In fact, an attempt to shift from assets which provided less inflation protection might cause an increase in stock prices. Thus, Keran's study indicates that the stockholders do not react as if they thought stocks were a good inflation hedge. Finally, Oudet conducted a study in which he concluded that inflation exerted a negative influence on returns.6 While each of these studies suggests that stocks are not a complete inflation hedge, none of them indicates to what extent, if at all, stocks may be a partial hedge. In order to answer this question and to provide a check on the previous results, all of which are based on U.S. timeseries data, it is useful to consider international data.

Price formation in the norwegian and swedish stock markets- some random walk tests*

Abstract: Summary Price formation in the Norwegian and Swedish stock markets is investigated by means of a sample of 45 stocks traded on the Oslo and Stoclkholm Stock Exchanges. Some evidence is given relating to the shape of the distributions of consecutive price changes. The independence assumption of the random walk hypothesis is examined by means of serial correlations and runs tests. A discussion is also included about price formation in small capital markets and for infrequently traded stocks.

Money Supply and Stock Prices: A Probabilistic Approach

Abstract: A relationship between money supply and stock prices is fairly well recognized in the literature. More recently the studies of Hamburger and Kochin [7], Modigliani [12], Keran [9], and Homa and Jaffee [8] have attempted to specify the short- and long-run nature and the direct and indirect nature of these relationships. Also, these studies have focused on determining the transition variables through which the money-supply effect is transmitted to stock prices. A more pragmatic approach is that of Sprinkel [17 and 18] and Palmer [14] who have attempted to analyze the money-supply and stock-market relationships to see if the former can be a predictor of the latter. More reliable forecasts of future market movements, if available, could be extremely useful for individual and institutional investors. At one extreme, information could be used to time the investment in and out of the market portfolio. Alternatively, the investor could more profitably use the B information on market volatility of stocks available from the capital-asset pricing model, relating expected rate of return on a security, E(Ri), with that on the market portfolio, E(Rm). Accordingly, the prediction of the market would indicate when to shift the composition of the portfolio from relatively low to high or from relatively high to low I² stocks and cash.

The Predictive Content of Some Leading Economic Indicators for Future Stock Prices

Abstract: Some recent works dealing with the subject of investment in common stocks have made cautious reference to the potential of some published, leading economic time series as inputs to stock price forecasting models. However, no prominent reports of systematic empirical research of the predictive usefulness of such series have appeared in the literature. Our study was designed to partially correct this seeming oversight.

The Cost of a Stock‐out

Abstract: At a time when “out of stock” is rapidly becoming a way of life there is merit in attempting to assess the cost to the business. This article suggests some of the areas which should be considered.

Stock trend indicator

Abstract: A stock trend indicator and method of using is disclosed. The manipulable instrument is used with a standard stock chart to forecast an evaluation of future stock behavior.

Bank credit and the money stock: their roles in the determination of income in the post accord period

Abstract: RECENT studies by Hamburger [1 ], Andersen [2], and Levin [15] indicate that fluctuations in total income in the post Accord period in the United States are more closely associated with changes in commercial bank credit than with movements in the money stock.' The virtual unanimity of this evidence has led some to infer that bank credit is a more important factor in the determination of income than is the money stock. Contrary to this inference, this paper presents empirical evidence that bank credit is an endogenous variable. In addition, this study finds that from 1953 through 1971 the correlation between bank credit and total income was higher than that between money and total income because bank credit and total income were effected in a similar manner by other exogenous variables. The analysis and results of this paper are based on four steps. First, the relationships between changes in two different measures of income and the current and lagged changes in six alternative monetary aggregates are estimated for all continuous quarters of the period under study.2 This establishes base estimates of the income-monetary aggregate relationships. Most of the findings of this section have been reported in earlier empirical studies. The correlation between income and bank credit is generally higher than the correlation between income and the money stock or its broader versions. Second,

Stock Splits: Prior and Subsequent Price Relationships

Abstract: Although it has long been recognized that a stock split merely changes the packaging of an investor's claim to earnings, there is widespread belief in the financial community that the split confers some substantive benefits on stockholders. This paper describes an empirical investigation of the effect of split action on stock price. The split action was found to have an insignificant effect, even at a 10% level, on changes in market price over the 12 month period surrounding the split. Copyright

The Value of Risk-Reducing Information

Abstract: It has been suggested that information has the three following uses:1. Information can be employed to earn trading profits.2. Information can improve the operating decisions of a firm or group of firms and thereby increase the stock price.3. Information can reduce the risk of a firm or group of firms and thereby increase the stock price.

Implications of Minority Interest and Stock Restrictions In Valuing Closely-Held Shares

Abstract: The federal estate and gift taxes levy on the gratuitous transfer of wealth by both testamentary and lifetime disposition. The amount of the tax depends on the value placed on the property transferred by the decedent or donor. When the property transferred consists of shares of stock in a closely held corporation, there often exists no ready market to help in valuation. As a result, the value of the shares used to compute the federal estate or gift tax must be determined first by appraising the value of the enterprise, and then by allocating some portion of that value to the shares in question. Occasionally, the value placed on these shares will differ from the proportionate value of the enterprise represented by them. This article deals with two instances of such variation in value from the proportionate interest of the shares in the closely held enterprise. One concerns the minority position of the recipient relative to other stockholders. The other concerns shares which are not freely transferable. Since both of these factors limit the shareholder's ability to realize fully on the value of the shares, a discount is frequently applied to such stock when computing gift and estate taxes.

A Bid Rent Approach to Housing Demand

Abstract: The theory of economic behavior in the housing and location market has been developed to date primarily from a long-run perspective in which the capital stock of housing is considered flexible. Within this framework, locational choice is reduced to a trade-off between commuting and land consumption [2, 8, lo]. As these models are being used increasingly to study a variety of urban phenomena, it would seem pertinent to reexamine their underlying assumption-that of mobile capital. The record of postwar housing construction in America suggests that even in a time of excessive demand, new units added only 1 or 2% to the stock each year. More importantly, the demand which resulted in this level of activity seems to have come primarily from equally rapid population growth [9]. It is not hard to imagine that with a more stable population, new construction would dwindle, and residential investment would concentrate more on replacement and rehabilitation. Housing, however, is very durable, lasting easily a century under quite adverse conditions. As long as units are even partially maintained, their existing rent provides a high opportunity cost against which replacement or extensive alteration can rarely compete. For a lo-20 year planning horizon, a model in which the existing stock is considered completely rigid may be a better approximation than one in which capital is completely mobile. If consumer decisions occur in a world of rigid capital, then the various attributes of housing, and their distribution over space in the existing stock, will be the important determinant of locational choice. In keeping with this view, a number of researchers have recently developed models of short-run consumer behavior, in which a mutually exclusive choice is made from among

International commodity control through national buffer stocks: A case study of natural rubber

Abstract: This paper illustrates, with a ten year simulation, possible effects of Malaysia's national buffer stock for natural rubber on the level and stability of export earnings, export tax revenue, producer income and world price. Employing rubber market parameters based on inference and empirical tests and buffer stock operating costs and policies similar to those of the current Malaysian buffer stock, it is shown that capital requirements for effective control exceed those at the disposal of the buffer stock manager while control may be expected to stabilize price at the expense of export earnings and producer income stability. These unfavourable effects can be neutralized in part by the increase in receipts obtained with a sufficiently narrow controlled price range or by an increase in demand emanating from reduced price risk. Under the apparent wider range of the buffer stock, losses in export earnings and producer income, as well as capital expenses and the terminal deficit of the stock authority are each l...

Paper stock headbox - with annular distribution chamber to promote turbo-turbulence and uniform stock distribution

Abstract: Paperstock head box for cigarette, tracing or condenser paper web making machine and associated at the inlet and outlet with a row of stock distributing tubes which promote turbulence is provided in the circular discharge duct which extends over the whole machine width with a cylindrical insert defining an annular chamber in the duct.