Unfilled orders and price changes: A simultaneous equations system

We have developed and statistically estimated a model which suggests that chances in price and in unfilled orders are simultaneously determined. Estimated systems for five industries suggest that, in the short run, unfilled order accumulations do absorb fluctuations. Our statistical analysis also indicates that anticipated increases in demand will affect current price adjustments if the increased demand is expected to lead to an acceleration in production rates in the not-too-distant future. The statistically determined weights of the industrial activity variable suggests that price is primarily determined more by the future conditions than ex post indications of industrial activity levels. Our analysis also supports Zarnowitz's interindustry comparison hypothesis that price responses are inversely related to the ratios of mean unfilled orders of shipments.     

Cash management economies in the production of food

This study suggests that the behavior of demand of cash by business firms can better be understood by empirical testing theory on data derived from individual units rather than making unrealistic assumptions to justify testing of aggregated data. Using data for firms in the food industry, this study shows that the rate of interest is a significant variable in explaining the demand for cash. Furthermore, the statistical results indicate that the economies of scale in the management of cash depends upon the type of goods produced by the corporations under study. Accordingly, one cannot make any generalization regarding the question of the economies of scale in the management of cash.     

Quality and economies of scale in higher education

This study attempts to develop and empirically estimate an average cost and output reltion for average total for higher education. Statistical results based on data for top PhD granting institutions suggest there are economies of scale in higher education. Academic reputation is also an important variable in explaining variations in average total cost.