bluuebunny/crossref_metadata_2025 huggingface dataset:
The Cost of Protectionism with High International Mobility of Factors
Authors: Dales J. H.
Published: June 2006

Given the Ricardian assumption that factors of production, though completely mobile nationally, are completely immobile internationally, trade theory proves that real income per capita in a country with an effective protective tariff will be lower than it would be in a free trade situation. Does the proposition hold if we assume international mobility of the factors of production? Our first inclination is to say that it does, because (a) the excess costs above world costs of producing protected commodities must be paid for by the consumers of the commodities, and (b) the consumers must be the domestic population, since commodities produced at costs above world costs cannot be sold to foreign consumers. On the other hand, it seems paradoxical to talk of imposing costs on people who are internationally mobile, and who can therefore avoid the burden of a protective tariff in whole or in part by emigration to a country where the burden is either non-existent or lighter. If there is protected production there must be a burden; but since the costs of protection can be avoided by emigration there can be no burden. The apparent contradiction could, of course, be avoided by taking the position that it is impossible to create, or expand, protected industry by means of a tariff in a country whose population is not imprisoned within its own borders by the Ricardian assumption. The contention of this paper, however, is that a country can establish protected industry—manufacturing, let us say—within its borders even when its population is free to emigrate. Our problem is to show how this outcome is possible.

The problem may be rephrased by noting the converse of the proposition stated in our introductory sentence, namely, that a tariff must effect a reduction in real income per capita in a country in order to be effective, i.e., to lead to the development of protected production. Accordingly, if we can describe a mechanism by which a protective tariff results in a reduction of real income per capita in a country whose population is free to emigrate, we will have shown the tariff to be effective.
Capital and Labour Requirements for Canada's Foreign Trade
Authors: Wahl Donald F.
Published: June 2006

Since Professor Leontief published his study of American foreign trade factor requirements in 1953, much has been written about the problem. This paper reviews the discussion briefly, and provides some data indicating the factor requirements for Canada's foreign trade.

This paper uses conventional input-output methods; one may criticise input-output results in a number of ways, the most obvious of which is to say that the algebraic solution does not represent the total picture. Professor Leontief, in a reply to Professor Granick and others, willingly admitted that the total picture includes resource endowments in each trading country, primary factors of production, shapes of production functions, input-output relations which govern the transformation of resources into goods and services, and consumer preferences for different bundles of production which can be supplied with alternative combinations of factor inputs. But in addition to this general limitation of the approach there are several specific criticisms.
Reflections on Recent Developments in the Concept of External Effects
Authors: Mishan E. J.
Published: June 2006

An all-pervading interdependence is what makes economics so intractable a subject. Walras' algebra, which represented the relationships between prices and quantities as a system of equations, was one of the first explicit demonstrations of how everything could depend on everything without entailing circular reasoning. So far as positive economics is concerned the only relationships to be considered are those which are believed to be operative; that a man feels worse off in consequence of the change of fortune or behaviour of other men is by itself nothing to the purpose of positive economics. In order for such facts to qualify as agenda for an economics that seeks to formulate predictive hypotheses these feelings must have some impact on observable economic magnitudes—on the prices and the quantities of goods and factors. But for a normative study, at any rate for a study that is manifestly concerned with human welfare, such reactions of men to the behaviour of others are no less relevant simply because they do not register on the existing economic mechanisms. Indeed, it is just because these reactions fail to influence the working of the market that they are of particular interest to economists concerned with resource allocation.
National Communism in Eastern Europe since the 22nd Congress
Authors: Skilling H. Gordon
Published: June 2006

It is more than two years since the historic 22nd Congress of the Communist party of the Soviet Union. In contrast to the dramatic repercussions in Eastern Europe of the 20th Congress five years earlier, the impact of the 1961 meeting was at first much less striking. The renewed assault on Stalin, this time open and unrestrained, did not generate a comparable intellectual ferment or unleash political forces capable of producing a crisis of the dimensions of 1956. No doubt Khrushchev and the other Eastern European leaders were anxious to avoid the disastrous consequences of that year, when the stability, and indeed the very existence, of communism hung in the balance, at least in Hungary and Poland. This time, certainly, their efforts carefully to control the direction and tempo of change were more successful, and the modest thaw did not produce a flood. None the less, there were serious consequences, often slow in manifesting themselves and differing substantially in each country, but having a long-run potential for modifying profoundly the shape and content of communism in Eastern Europe.

An entirely unforeseen result of 1956 had been the emergence of China as an influential force in world communism, challenging the hitherto predominant position of the Soviet Union. Her extraordinary intervention in the affairs of Eastern Europe during and after the Hungarian revolt had greatly contributed to the stabilizing of the situation, but had marked the emergence of a balance of power within the communist system and the beginning of a serious conflict of policy and doctrine between the two great communist states. Although the full effect of this Chinese challenge was at first somewhat obscured from view, it became increasingly clear that it would have an even more profound impact than earlier defiance by smaller states such as Yugoslavia, Poland, and Hungary. At the 22nd Congress, only the tip of the iceberg of Sino-Soviet differences protruded in the form of the Chinese protest at Khrushchev's public denunciation of Albania. The full measure of the divergence was revealed in the subsequent two years, reaching a climax in the confrontation of mid-1963.
Freedom
Authors: Dryer D. P.
Published: June 2006

A policy or institution is often objected to on the ground that it interferes with freedom. Yet even where a policy is shown to have certain effects, it is frequently far from clear whether these effects constitute a diminution of freedom. To clear up the matter, many thinkers have tried to elucidate “the meaning of freedom.” Most who have made such an attempt have missed the mark through including within “the meaning of freedom” other things which they regard as desirable besides freedom itself. It is notorious that many who attempt to say what art is tell us only what they regard as good art. Many who try to define “law” fail to give an account applicable to bad laws as well as good laws. Recently a few attempts have been made to avoid this sort of pitfall in elucidating what is meant by the familiar word “freedom.” The latest and most ambitious attempt at this is made by F. E. Oppenheim in his book Dimensions of Freedom.

If a man has freedom, he is free. Yet if someone is not free on a certain evening, we should not say on that account that he is lacking freedom. “Freedom” is not simply the substantive corresponding to the adjective “free,” as “redness” corresponds to “red.” We speak of a room as being free of dust, of a lawn as free of weeds, of milk as free of impurities. The adjective “free” is applicable in many contexts in which the substantive “freedom” is not. Freedom is literally asserted only of human beings, whether singly or in groups. When applied elsewhere, as in speaking of a tiger recovering its freedom or “freedom of the will,” it is used only metaphorically, on analogy to its literal use. Yet “freedom” is clearly also not the substantive that corresponds to the adjective “free” whenever this adjective is applied to human beings.
The Limits of Behavioural Explanation in Politics
Authors: Kim K. W.
Published: June 2006

The unique contribution of American scholarship to the study of politics is undoubtedly the development of behaviouralism. As “a successful protest” against the limits of traditional political science, the behavioural approach has certainly broadened our perspective by calling attention to hitherto neglected areas of political research. It has also made us methodologically more sophisticated by its insistence on rigorous empiricism and on theory-building as a major task. And yet it is difficult to be convinced that “all segments of political science can be treated behaviorally,” as one student has recently claimed. Behaviouralism is certainly an effective way of studying politics. But it is quite a different thing to say that there exists no aspect of politics which cannot be treated behaviourally. It is the aim of this paper to enquire whether there may not exist segments of politics which by their very nature resist the behavioural treatment.

Let us first define what is to be understood by behaviouralism. In view of its inherent “ambiguity,” it may be best to start by listing three major assertions which I think set apart behavioural explanations from other kinds of statements in political studies. These assertions are: (1) individuals rather than groups constitute proper units for analyses; (2) facts must be separated from values; and (3) legitimate explanations always run in terms of laws or generalizations, but never in terms of descriptive statements of particular occurrences.
Some Technological Relationships in the Wealth of Nations and Ricardo's Principles
Authors: Hollander Samuel
Published: June 2006

Considerable difficulty is presented for students of classical economics by the ambiguous use of the term “capital.” In particular there is much room for debate concerning the importance of technological capital as distinct from wage-goods capital in classical economic literature. This problem exists in the Wealth of Nations as well as in the work of Adam Smith's successors.

Malthus was quick to point out that serious error may result from Smith's analysis of wages wherein “every increase in the stock or revenue of the society” is regarded as “an increase in the funds for the maintenance of labour.” More recent writers recognize the references to “fixed capital” but imply that mere Up service was paid to such items; the emphasis was predominantly upon wage goods. In particular, it has been argued, Smith emphasized “the superior physical productivity of time-using processes” and the requirement that subsistence goods be available to permit the adoption of such techniques. “These accumulations are the simplest form of capital; machinery, tools, stocks of all sorts and human skill and knowledge are simply more complicated forms.

Perhaps the strongest criticism is by Marx. Marx did not deny that “constant” capital makes an appearance in the Wealth of Nations, but, he argued, it does so only at the micro-economic level of analysis: “Adam Smith, by a fundamentally perverted analysis, arrives at the absurd conclusion, that even though each individual capital is divided into a constant and a variable part, the capital of society resolves itself only into variable capital, i.e., is laid out exclusively in payment of wages.”
Some Remarks on an Econometric Model of a Provincial Economy
Authors: Matuszewski T. I.
Published: June 2006

It appears to be generally agreed that there ought to be a close integration of economic theory and the building of econometric models, together with the auxiliary activities of data collection and processing. If this is to be so, then every econometric model must be a special purpose model or at best a model designed for a limited range of related uses. A model is, by definition, an image of reality that is simplified according to certain criteria of what is important and what is not. Its construction necessarily reflects the main preoccupations of its builders, the relations and measures they think relevant to the problems they face, and even their particular versions of economic theory. This leaves the door wide open for differences in emphasis, in priorities, and even in fundamental interpretations of economic phenomena. In short, a model appropriate for, say, Quebec, will necessarily differ considerably from models constructed for the federal government or its agencies and from models set up by large corporations for their own use. And it is not just a matter of fitting different parameters into the same logical structure; the logical structures themselves will differ.

Secondly, if true integration of model building with economic theory is to be attained, and if a solid observational basis is to be secured, we must work very close to the micro-economic level. This means that models must be disaggregated, since our most solid theoretical results are in micro-economics.
Inventory Behaviour and the Stock-Order Distinction: An Analysis by Industry and Stage of Fabrication with Empirical Application to the Canadian Manufacturing Sector
Authors: Courchene Thomas J.
Published: June 2006

“It appears that aggregation may be pushed much further in inventory analysis than has heretofore been generally felt justified.” Originating with P. G. Darling and confirmed by M. C. Lovell, this oft-quoted assertion has in large measure been responsible for what might be termed a “consensus” (albeit implicit) on the usefulness of aggregation in empirical inventory studies. Professors Eisner and Strotz carry this interpretation to its extreme by declaring that they “prefer, at the theoretical level, to disaggregate by motive rather than stage [of fabrication].”

The purpose of this study is to take a closer look at the role of the inventory components (i.e., finished goods, goods in process, and raw materials) in aggregate inventory behaviour. Paramount among the issues addressed is the Eisner-Strotz assertion: is it meaningful to speak (on a theoretical or empirical level) of motives for holding inventories without reference to the stages of fabrication?
The Income Distribution of Canadian Urban Family Saving, 1959
Authors: Asimakopulos A.
Published: June 2006

This paper attempts to fill a gap in Canadian economic statistics. Saving by households is the largest component of net domestic saving in Canada, but lack of data has prevented any detailed examination of the saving behaviour of this sector. The periodical surveys of liquid assets provide information on the income distribution of household savings and some of the forms in which they are held, but no such distribution has been derived for household saving. A first step is made here in the analysis of Canadian household saving behaviour with the construction of income distributions of saving based on data collected by the Urban Family Expenditure Survey for 1959. The survey is not an ideal instrument for this purpose; it was designed primarily to derive detailed information on consumer expenditures, and it is not always possible to separate out, without using approximate methods, data required for saving estimates. In addition, the total sample is relatively small with only a limited number of respondents in the upper income and entrepreneurial categories which contribute substantially to total saving. However, there is no other Canadian source available for this type of study. The results obtained are of interest in themselves and their derivation can point up changes in survey methods and tabulations which would make future survey data more useful for the estimation of household saving.

The 1959 survey was restricted to urban centres with a population of 15,000 or over, but there were no restrictions with respect to family size or income. A probability sample of slightly more than 3000 households was selected for the survey from the eighty-one urban areas which qualified. The sampling rate was 1/1500 in Montreal and Toronto, 1/800 in Vancouver, 1/300 in Newfoundland, and 1/600 in all other areas chosen. To obtain national averages the returns for each region were weighted to allow for differences in sampling and response rates. Response rates varied from 45 per cent in Toronto to 78 per cent in the Prairies, with an over-all average of approximately 62 per cent. No adjustment was made for differences in the response of the various family types. It was noted that “the proportion in the weighted sample of one-person units to families of two or more was below that indicated by available check data.” This lack of adjustment, if differences are significant, would bias the survey results and thus our saving estimates, if the responses varied with family type. Tables IV to VI, given below, indicate that substantial differences exist in the saving patterns of the three family sizes for which estimates were obtained.
Economic Growth and International Trade in a Simple Dynamic Leontief Model
Authors: Minabe Nobuo
Published: June 2006

Traditional Keynesian trade multipliers ignore intermediate goods. Professors Harrod and Johnson have considered them in a limited sense; both used a one-sector model. The objects of this paper are: to consider the effect of intermediate goods on the trade multiplier by use of a matrix trade multiplier; to consider their effect on the rate of growth of both exports and outputs of commodities; and to discuss the stability conditions of a balanced growth rate in a simple dynamic Leontief model.

Harrod took intermediate goods into account only as a deduction from exports or investments when he considered the multiplier process. Johnson considered them more explicitly. In his model, an economy uses a primary factor of production, say labour, and foreign-made intermediate goods to produce consumption goods. However, the economy does not use home-produced intermediate goods, and all home-produced goods are consumption goods (so that the economy exports only consumption goods). In a more realistic model, the autonomous increment of demand for investments or exports would create two kinds of multiplier processes: one through the increment of demand for home-produced consumption goods, the other through the demand for home-produced intermediate goods. Each industry uses a primary factor of production and both home-made and foreign-made intermediate goods. Consumers demand both domestic and foreign consumption goods.
A humanized gnotobiotic mouse model of host–archaeal–bacterial mutualism
Authors: Samuel Buck S. , Gordon Jeffrey I.
Published: June 2006

Our colons harbor trillions of microbes including a prominent archaeon,Methanobrevibacter smithii. To examine the contributions of Archaea to digestive health, we colonized germ-free mice withBacteroides thetaiotaomicron, an adaptive bacterial forager of the polysaccharides that we consume, with or withoutM. smithiior the sulfate-reducing bacteriumDesulfovibrio piger. Whole-genome transcriptional profiling ofB. thetaiotaomicron, combined with mass spectrometry, revealed that, unlikeD. piger,M. smithiidirectsB. thetaiotaomicronto focus on fermentation of dietary fructans to acetate, whereasB. thetaiotaomicron-derived formate is used byM. smithiifor methanogenesis.B. thetaiotaomicron–M. smithiicocolonization produces a significant increase in host adiposity compared with monoassociated, orB. thetaiotaomicron–D. pigerbiassociated, animals. These findings demonstrate a link between this archaeon, prioritized bacterial utilization of polysaccharides commonly encountered in our modern diets, and host energy balance.
The Ricardian Theory of Production and Distribution
Authors: Knight Frank H.
Published: June 2006

On the assumption that the primary interest in the “ancients” in such a field as economics is to learn from their mistakes, the principal theme of this discussion will be the contrast between the “classical” system and “correct” views. The system is taken in the sense indicated by the title, with little regard to other writers than Ricardo's own great master and the two successors most competent and closest to his own spirit, Senior and Mill. While our special interest is distribution theory, it is useful to have in the background clear views of essential doctrines or points of view in the authors' theory of value or price; for these are often closely connected with fallacies in the other field. It will be appropriate to give by way of introduction a kind of formal list of main deficiencies and sources of error in the system as a whole. At least seven such “aberrations” appear to have vital importance.

The first to be noticed is the unfortunate conception of value, in negative terms—cost, interpreted as “pain”—instead of positive terms—desire or utility. This fallacy occurs explicitly in the parts of the argument which have come to be referred to in the literature as the “philosophical” account of value. Specific discussion of the determination of value (price) as a quantity (the “empirical account”) runs, indeed, largely in other, more “correct” terms, of the equalization of return from productive expenditure in different fields through correct allocation.
The Gerrymander of 1882
Authors: Dawson R. MacGregor
Published: June 2006

John A., the Sachem, speaks:

……….“It must be granted

That our friends are badly scattered,

And the chances are against us

In Ontario at present

As the country is divided.

Therefore let us re-distribute

What constituencies are doubtful

So as to enhance our prospects;

Hive the Grits where they already

Are too strong to be defeated;

Strengthen up our weaker quarters

With detachments from these strongholds;

Surely this is true to nature

In a mighty Tory chieftain!”

Environment and heredity affect the development of the nation as much as they affect the development of the individual; and Canadian history is written, for the most part, around the conflicting forces of British inheritance and American propinquity. An excellent example of the latter is found in the low condition of Canadian political morality which was most conspicuous during the first fifty years of responsible government. While this was unmistakably national in many of its manifestations, its rise and continuance were due in no small measure to the proximity of the United States; and the temptation for the Canadian politician to emulate in a modest way the methods of a Tweed, a Croker, or a Philadelphia Gas Ring, proved in a deplorable number of instances to be irresistible. The prevalence of bribery at elections (particularly before the introduction of the ballot in 1874), the strengthening of the party position by the award of contracts and the appointment of supporters to office, the series of questionable “deals” and practices of which the Pacific Scandal was the most notorious—these were evidences of native sins which had received American inspiration and encouragement and which corrupted extensively Canadian political life.
Multilateralism and Full Employment
Authors: Kalecki M.
Published: June 2006

The problem of multilateral international trade looms large in the present plans for the new world economy. The International Monetary Fund and the International Bank for Reconstruction and Development as well as the agreement underlying the United States loan to the United Kingdom aim at establishing a workable system of multilateral international trade. Roughly speaking, the principle of multilateralism requires that each country should be guided in its purchases in other countries solely by the price and quality of goods without taking into consideration whether the supplying countries are or are not buyers of the produce of the country in question. It will be seen that the operation of such a system in balancing foreign trade may create serious difficulties for those countries which pursue a policy of maintaining full employment. Each country at full employment will require a certain volume of necessary imports. Now it is by no means obvious that it will be able to secure under a multilateral trade system a level of exports which will provide it with a sufficient amount of foreign exchange to pay for the volume of imports required at full employment. The country concerned may thus tend to achieve more security in its foreign trade by concluding a series of bilateral agreements with other countries relating in some way imports from and exports to those countries. Or it may enter together with other countries into a “regional block” expecting, on the basis of the economic characteristics of the participants, to be able to secure within the block a large part of the required imports in exchange for its exports. (The trade within the block would be operated on a multilateral basis, while the exchange proceeds from exports to countries outside the block would be “pooled” and allocated to the member countries of the block according to a certain schedule.)
The Goal of Indian Assimilation
Authors: Beatty Willard W.
Published: June 2006

Indian and white relations in the United States have continuously been influenced by the profound conviction of the white man that he is of a superior creation. It is not an attitude reserved for the American Indian—it extends to the members of every non-white race; nor is the attitude peculiar to citizens of the United States—it is shared by our British cousins, and is basic in Latin American relations. In spite of all our democratic protestations, this colour response vitally affects every aspect of the lives of all the members of many of our minority groups.

While many of the missionary minded from early colonial days onward have striven to “educate,” “civilize,” and “Christianize” the Indians, the great mass of the white population continued for many years to look upon the Indians as members of a sub-human group. To be honest with ourselves, many of our citizens still hold to this point of view.

In the light of this fact, it is surprising that the government of the United States has maintained as unblemished a record of respect for Indian land titles as is the case. Throughout our relations with the tribes, even though our citizens have invaded Indian territory, sold Indians liquor, incited Indians to revolt, and then put down that revolt with bloody fury, we have preserved the legal position that the Indians held title to the land of the United States when the white man landed; and we have scrupulously treated with each group as we pushed them westward, to extinguish the Indian title by treaty and compensate the tribes in some fashion. In those early days, very little was said about assimilation. We continuously promised Indians that after we had pushed them far enough west to get them out of the way, we would let them settle down and live their lives as independent nations. It is still technically correct to refer to the Six Nations in New York State; or to the Cherokee, Choctaw, or Chickasaw Nations in Oklahoma. Until Oklahoma was admitted to statehood, the United States dealt with these Indians as members of independent nations.
The Reparations Problem Again
Authors: Gottlieb Manuel
Published: June 2006

The mishandled problem of reparations and inter-Allied war debts looms large in customary analyses of the wreckage of the European peace settlement after World War I. The seminal source of trouble then was the insatiable appetite of the Versailles victors for “spoils,” joined by the Shylock American insistence on repayment of war debts.

After World War II the war debt problem was gently erased, but reparations proved even more troublesome. Although those powers which a generation before had moulded the Versailles Treaty were, under American leadership, comparatively tame in their reparations demands, the Soviets were not. This is readily understandable, since the German armies spent their destructive fury on Eastern and not on Western lands. The Soviet loss of life and resources in repelling German armies from the heart of Russia was truly colossal. The war wiped out hard-won advances (factories, inventories, power plants, residences, tractors) achieved since 1917 under lash and by dint of incredible austerity.1 The Soviet economy was planned and, with its insistent commodity needs, could absorb immense quantities of manufactured goods. Despite bomb-smashed German city centres and residences, German manpower remained, as well as powerful industrial facilities which operated up to the closing months of the war. Any trained observer would expect the Soviets to demand maximum one-time drainage and continuing arrangements whereby some German industrial facilities would be worked by some German labour to produce goods and services for Eastern benefit. This was precisely the policy later carried out within the Soviet Zone of Germany which, if it was not “milked dry,” was converted into a massive pumping station for current product reparations.2 A less self-regarding Soviet policy toward the leading “ex-enemy” country would have been astonishing in view of the substantive drainage from “liberated” satellite areas.
The Dollar Shortage in Theory and Fact
Authors: Ellis Howard S.
Published: June 2006

The “shortage of dollars” seems unfortunately to mean all things to all men; hence we must try first to come to a precise definition of the problem. I have myself, in my personal affairs, experienced both a dollar crisis and a chronic shortage of dollars; and I suppose that most mortal creatures have the same difficulties, expressible equally well in terms of their own or of other countries' currencies. But in this sense, which is really nonsense, the “shortage” means only that we have not attained to an “economy of abundance.” Official pronouncements on the problem do not always escape this nonsense.

A much more sophisticated interpretation of the dollar shortage, but one which I am sure must finally be rejected, is “an excess of dollars used over dollars supplied, the difference being made up by borrowing on short-term account from the United States and shipping gold to the United States.” The peculiar character of this definition of Professor Seymour Harris is dramatically shown by the dollar shortage of the thirties, which was marked—and indeed by common knowledge to a large extent caused—by thewithdrawalof American short-term capital from Europe, and the flight of capital, mostly short-term,fromEuropetothe United States. Quite possibly Professor Harris might wish to extend his definition from an outflow of short-term capital from the United States to an inflow also, to be able to cover the European capital flight case. This solution would then apparently associate the idea of a dollar shortage with anundesirableshort-term capital movement in either direction, but it would fail to specify in whatrespectthe movementisundesirable. Furthermore, one would be forced to relinquish the idea of a dollar shortage in all cases in which no capital exports or imports take place.
The Interpretation of Origin Statistics
Authors: Ryder N. B.
Published: June 2006

The most important source of data for research into Canadian society is the federal census. These decennial inventories, of which there have been nine since Confederation, contain hosts of numbers, most of them unfortunately rather widely ignored by social scientists. Of the battery of questions to which every individual is subjected, a few are singled out as yielding fundamental facts, and appear again and again in the tabulated product in cross-classification with other subjects. The three basic attributes, which are the sine qua non of a personal census, are age, sex, and geographical location. Next to these in importance, if we may judge by the volume and detail of published tabulations and analysis, is origin. Now the intriguing circumstance about this highly emphasized piece of information is that it remained undefined until 1951. There was no explicit indication of the operations required to identify the referent of the term. Furthermore, the answers obtained and published clearly applied to an array of different types of evidence, which could easily overlap for a given individual.

Consider, for example, the 1941 census, and its question, there termed “racial origin.” The “Instructions to Commissioners and Enumerators,” which are required reading for anyone making serious use of census statistics, give the following clues:

What is racial origin? The word “race” signifies—“Descendants of a common ancestor.” [It may be asserted that this does not specify a practicable operation.] … a person's racial origin and nationality very often are different …. The name of a country from which a person came to Canada gives no indication of that person's racial origin …. The word “Canadian” does not denote a racial origin, but a nationality; the same applies to the word “American” …. What determines racial origin? As a general rule a person's racial origin is to be traced through his father ….
The National Housing Act, 1954
Authors: Poapst J. V.
Published: June 2006

The year 1954 was an active one in the development of Canada's financial system. Important revisions were made to banking legislation. The statutory minimum cash reserve ratio required of the chartered banks was changed from a fixed daily ratio of 5 per cent to a daily average of 8 per cent which the banks must achieve for the calendar month. The central bank was granted another tool of monetary control—the right to alter the minimum cash reserve ratio. The chartered banks were admitted to new fields of lending. In June another step was taken to broaden the short-term money market when the chartered banks commenced to make day-to-day loans. These developments reflected a desire on the part of the monetary authorities to increase the sensitivity and flexibility of the nation's financial system.

Meanwhile Canada's fourth housing act was passed. The National Housing Act, 1954, marked the federal government's twentieth year of continuous assistance to housebuilding. Like its forerunners, the Dominion Housing Act of 1935 and the National Housing Acts of 1938 and 1944, the new act provides assistance primarily through the medium of the mortgage market. All the acts have been concerned with the provision of mortgage credit for housebuilding at terms more favourable to the borrower than those prevailing in the conventional loan market.
The Capacity Concept and Induced Investment
Authors: Bowman Raymond T. , Phillips Almarin
Published: June 2006

According to the principle of acceleration, net induced investment is proportional to the rate of increase in national product. The principle is usually qualified by a statement to the effect that if the economy's production is at a rate lower than some previous peak, the proportionality may not hold. Once, however, capacity is reached, increases in the rate of production will induce investment.

This paper derives its relevance from the current attempts to construct a set of dynamic input-output equations which will generate demand for additional stocks of capital facilities on the basis of a set of capital coefficients and measures of capacity for the “industries” of the system. The basic arguments set forth are applicable also to tests for the feasibility of solutions of static input-output systems with respect to existing stocks of capital, but most attention will be directed to the dynamic formulation.

Professor Leontief's dynamic input-output equations are of the form:

Xi represents the rate of output of the ith industry, Yi is the amount of this output taken by the autonomous final demand sector and aik is the now familiar coefficient of production, the amount of the ith industry's product which the kth industry purchases per unit of output of the kth industry. This much of the equation set is identical to the static input-output system. The dynamic addition is in the bik capital coefficients, which measure the amount of stock of the ith industry's product held by the kth industry per unit of annual output, and in the values, which are the first derivatives of the annual rates of output of the various industries with respect to time. The capital coefficients are accelerator values for each industry with respect to all other industries. The summated value,

is the instantaneous annual rate of induced investment for the economy at any given moment of time.
Full Employment on Trial: A Case Study of British Experience
Authors: Sultan Paul E.
Published: June 2006

British post-war experience constitutes the best case yet available for study of a conscious government policy of combining full employment and price stability within the framework of free collective bargaining. In this paper, a few of the unresolved problems inherent in a full-employment economy are examined in the light of British experience. The hard core of the problem of full-employment price instability is the difficulty of restraining demands for higher wages, not because labour is less “responsible” than other sectors of the economy, but because wages constitute the largest single item both of costs and of income. It is therefore interesting to determine whether British governments have produced a wage policy which could compress wage demands within the limits say, of the productivity of labour. Has any principle (other than uninhibited self-interest) provided a new orientation to the process of collective bargaining? Has collective bargaining with a fully employed labour force in Britain disturbed the traditional constancy of distributive shares to capital and labour and if so, what was the impact of this, in turn, on economic reconstruction? What, in general, has been the rationale of trade unions in the environment of full employment? Britain has attempted to discover answers to these problems. Only by knowing these answers can we intelligently appraise the policy of maintaining full employment.
Urban Building and Real Estate Fluctuations in Canada
Authors: Buckley K. A. H.
Published: June 2006

This study of urban building and real estate activity in Canada is concerned primarily with housing. It is part of a broader project stimulated by Silberling's thesis that among the various components of durable capital formation in the United States only investment in housing and in transportation have acted as prime movers determining the general level of economic activity. This paper falls into two parts, the first dealing with the nature of building and real estate cycles in selected cities in Canada, and the second relating these fluctuations to the growth and movement of population. Basic tables and brief notes on sources are included in an appendix.

The top section of Chart 1 is an index of urban building activity in Canada from 1866 to 1946. This index reflects four and a half major cycles in the eighty years since the Dominion was established. The cycles are similar in many respects to those found by American students. This Canadian index, like those used to illustrate the long cycles in American building, is based on building permits issued in major cities, and has been adjusted to eliminate the influence of changes in the cost of construction. Table I compares upper and lower turning points in the index with those reflected in Mr. J. R. Riggleman's index of deflated values of urban building permits per capita in the United States.
Conservation Policy and Capital Theory
Authors: Scott Anthony
Published: June 2006

Conservation is a word which occurs more and more frequently in politics. The “conservation of natural resources” appears both in the government accounts and in election speeches as a phrase which covers public spending on forests, waters, minerals, and fisheries, regardless of the ultimate purpose of that expenditure. Payments to American farmers, which enable them to achieve higher output and receive larger incomes, are blithely described as “conservation” without reference to whether or not the transaction has increased the nation's stock of natural resources.

Conservation is a field of study for many of the sciences. Originally, I think I may say, the child of the forestry profession (indeed in the United States the profession of forestry might almost be described as the child of the conservation movement), it has received increasing attention from many other fields. In the 1920's, conservation of oil resources became the slogan of the petroleum companies, swamped by new discoveries. They lost interest when demand increased relative to the newly controlled supply. In the 1930's, low demand for farm output, grave drought conditions, and allegedly increasing soil erosion made “conservation” a good cry for those who would give aid to agriculture. During the last war, farm specialists pushing soil conservation continued to hold the stage, but since then the public has heard increasingly from scientists and business men connected with fisheries, petroleum, water power, forestry, and even minerals. The current approach is to discuss the interrelation of the use of all the natural resources and to stress the necessity of conserving such resources simultaneously.
The Bank of Canada's Approach to Central Banking
Authors: Neufeld E. P.
Published: June 2006

There is little doubt that the Bank of Canada and Canadian monetary policy have been subjected to more public criticism since 1954 than at any other time since the Bank began operations in 1935. The force and the persistence of the criticism may in part be explained by a coincidence of events which included a move toward severe monetary restraint, a change of governor at the Bank of Canada, two national elections, and a change in government. Public criticism has for the most part concerned itself with the degree of monetary restraint or monetary ease in the economy generally and in specific sectors, with the timing of changes in policy and with the appropriateness of policy in the light of economic conditions. This paper will let those matters rest. Rather it will try to determine whether in a more fundamental sense the Bank's operations are in some respects open to criticism.

There would appear to be four important aspects to the Bank of Canada's approach to central banking: the Bank's interpretation of its role in the allocation of capital; its conception of the mechanism by which monetary policy becomes effective and of the bounds within which monetary management must operate; its method of making quantitative monetary controls more effective; and its emphasis on the use of moral suasion. The third section will include an examination of the new Bank Rate.
From Acceptance of Nature to Control: The Demography of the French Canadians Since the Seventeenth Century
Authors: Henripin Jacques
Published: June 2006

Toward the end of Louis Hémon's novel Maria Chapdelaine, which is perhaps the work most representative of traditional French Canadianism, one finds this lyrical passage: “… in the country of Quebec, nothing has changed. Nothing will change, because we are a testimony.” This was written in 1916, but evidently many things have changed since that time. Economic evolution, urbanization, spread of knowledge, technical progress have greatly modified individual and family life as well as social environment. And these transformations have affected the very core of both French-Canadian society and French-Canadian individuals. As a matter of fact, they have burst the old framework of self-sufficient social life and they have transformed the most fundamental motivations of the individual and of conjugal behaviour. Even in the observance of formal moral rules their impact has been felt. It is not surprising that such changes have affected the demographic pattern to a large extent. Most French-Canadian scholars, social philosophers, and political leaders, who are specially interested in the French-Canadian ethnic group, are relatively unaware of the extent of this demographic change and some would not readily admit it. In this paper, I would like to try to throw some light on the main demographic facts and problems of this evolution or, as one might be tempted to name it, revolution.
Economic Growth in Canadian Industry, 1870–1915: The Staple Model and the Take-off Hypothesis
Authors: Bertram Gordon W.
Published: June 2006

In his widely discussed stage theory of economic growth Professor W. W. Rostow has attempted to reach a level of historical generalization somewhat similar to that essayed by the pioneers in the discipline of economic history. Herbert Heaton observed that early economic historians were interested in a search for “the laws of social development” and for conclusions “as to the character and sequence of stages through which the economic life of society has actually moved.” Their valiant attempts to put historical generalization in the place of economic theory, concluded Heaton, were not successful. One purpose of this paper is to show that Rostow's analysis, while relying more on economic theory than its predecessors, is no more successful in understanding specific cases of economic development and, more widely, contains many difficulties as a general theory of development.
A Synoptic View of some Simple Models of Growth
Authors: Asimakopulos A. , Weldon J. C.
Published: June 2006

There are two things we would like to do in what follows. The first is to provide a comparative anatomy of some of the simple, basic models of economic growth. The second is to offer the thesis that within this selection of models surprisingly little has been added to the structure of Sir Roy Harrod's “Essay in Dynamic Theory.” If the Harrod model is prefaced by F. P. Ramsey's account of savings, and supplemented by J. von Neumann's existence theorems for growth in a disaggregated economy, that range includes the essential ideas of the entire selection. Many issues have been clarified by the later items. Useful elaborations have been developed, chiefly in an improved treatment of money and of technological change. But other elaborations have been at best ornamental, and purely analytical improvements have been very small. In the spirit of this assessment we maintain that it is a mistake to link Harrod's model with that of E. D. Domar in the often encountered Harrod-Domar model: the Domar model is much the narrower in scope.

These views might depend on the choice we have made of simple models, but we believe they reflect instead the aptness and durability of the Harrod scheme. In any case we are not attempting either a review article or an exercise in the history of economic thought. Our interest is in analysis, and we identify our choice of models by a short list of specific references, drawing upon associated commentaries only for help in interpretation. The list goes back no earlier than to 1928 and F. P. Ramsey's classical “Mathematical Theory of Savings.”