Noting the variety of methods by which the concept of economic capacity is measured and the different ways that the concept is defined, Richard E. Gift seeks here to develop a conceptual framework within which a meaningful interpretation of these many definitions and measures of productive capacity can be made. Gift's method is to show the common structure that is shared by all capacity concepts and arguments. This structure consists of a list of variables that must always be considered when assessing the economic capacity of productive equipment. He then shows that the problems which arise in comparing capacities for different dates can be expressed in the form of a few simple generalizations. His third step is to illustrate specific problems. Finally, he sets out to develop a test for the logical completeness of any argument about capacity.
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A consideration of the problem of a country's tradixlg with another country that is a potential military enemy. Such a situation is not new in history, but since WWII an ideological dimension has been added to the point that one country is willing to change the econ & soc system of the other. Countries with diff kinds of gov are faced with the problem of trading with a country that is perceived as a menacing actor. The aim of this paper is to reason rigorously & specifically about this problem, with reference to US-Soviet trade. More specifically, the aim is to show what assumption must be made if one were to argue that East-West trade should not be increased or should even be eliminated. The model involves 2 countries, A & B, & 3 commodities, X, Y, & Z. A number of assumptions are made about the countries & about the commodities, their production & the mode of their exchange. The arguments of the paper are developed through mathematical equations & with reference to several econ models. The conclusions of these exercises is that there is no necessary relationship between trade intensification & arms production. Insofar as there is a relationship between trade & nat'l jeopardy, the US is not unique in its vulnerability & Soviet policy makers face similar risks, uncertainties & value conflicts. The psychol'al & pol'al conditions under which A-B trade intensification would bring about increased arms production, the author states, are precisely those under which productive negotiations on trade increase are highly unlikely. The opponents of trade intensification reverse the relation between trade &jeopardy. It is not that trade increases jeopardy, but that certain kinds of threat systems make it impossible to know the benefits of trade. 10 Figures & a Bibliog. A. Peskin.
The relationship between economic change and political and social unrest in LDCs is analysed in the disequilibrium tendencies of the dual economy. Data on economic behavior and environment of a large sample of rural South Vietnamese peasant households, collected in the early 1960s, are used for analysis, which reveals low economic rewards from traditional agricultural activities and diminished welfare levels of peasant households. (DSE)
