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Mr William B. Simpson,
Managing E^ditor of"Fcononetrica"
University of Chicago (37$> 111.
Dear Mr Simpson,
Please, find i^belQW: . a few remarks on Lui's
article for Econometrlea. Since one of my collaborators, my
friend dr Stuvel, just published a book on the saresubject, I
wonder whether it would not be useful to ask his opinion too.
Since mr Stuvel is absent for a week I propose that the 'nanuscript is sent back after he has had a chance to see it. Please,
let me Stnow if you are in urgent need of it.
Yours very sincerely.
NOTICE ON MR LUI'S ARTICLE
I think the article is highly interesting and certainly deserves
to be published. The following remarks nay, however, perhaps lead
to some slight improvement. They are Tna(te in haphazard order.
1.

The wording used in the table is somewhat suggestive of
"optimism" since mr Lui alv/ays speaks of conditions under which
improvement is certain. It might in a number of the cases have
'"een formulated in a more neutral way by adding conditions under
..nich deterioration is certain.

2.

It is a small lack of elegance that the syi|ibols for countiy^
have a subscript J., whereas there also exists a country J,. ¥i/hy
not speak of country Q and J. ?

3»

Is it correct on p.10 to speak of the solution of any of the
variables^ in terms of another ?

h.

It is a pity thèt the numbering of the "steps" do not
correspond with the numbering of the equations.
5.
The true character of equation 10 would seem to me to be
a supply equation; the wording in which it is announced suggests
that it is a demand equation, but if so it would duplicate equation
k and 6. If it is the intention that it be a demand equation
I would oppos^ei, I think it would b^^ be tier to have a supplg
equation here^'^instead of £ to use^ elastici^sfffof x with repect
:> P,
^

6.

Why are no K and rr mentioned in the list of parameters,
and why is ^u. mentioned as an independent parameter ?

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