SINGLE COLUMN JOURNAL SAMPLE PAGES Wiley: Random Structures & Algorithms Numerical Methods for Partial Differential

Equations Journal of Graph Theory Federal Reserve Bank of Richmond: Economic Quarterly Academic Press: A Style Journals C Style Journals Kluwer Academic Publishers:
Small Journal Style, used for

Machine Learning Auto. Software Engineering Jrnl. of Intelligent Info. Systems Computer Optimization and Applications Jrnl. of Systems Integration Distributed and Parallel Databases LISP and Symbolic Computation Discrete Event Dynamic Systems (and other titles)

Wiley: Sample pages for Random Structures & Algorithms Numerical Methods for Partial Differential Equations Journal of Graph Theory

482

QIU

This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. 2. THE AUTOMORPHISM GROUP OF A COMPLETE (q 1)-ARC AND ITS B ORBIT This is a test of a section with math in section head, and a section wrapping. A. Subsection This is the subsection. This is the subsection. This is the subsection. This is the subsection.

Subsubsection This is the subsubsection. This is the subsubsection. This is the subsubsection. This is the subsubsection.
RESULTS This text surrounds an equation. This text surrounds an equation. This text surrounds an equation. (2.1)

This text surrounds an equation. This text surrounds an equation. This text surrounds an equation. An equation with a special equation number: ABC 123 (13 )

This text surrounds an equation. This text surrounds an equation. This text surrounds an equation.1 This is split math, without an equation number. ABCasdf asdf asdf asdf DEF asdf asdf asdf asdf asdf asdf asdf asdf asdf asdf This is split math, with an equation number. ABCasdf asdf asdf asdf asd DEF asdf asdf asdf asdf asdf asdf asdf (2.2)
xxx

This is split math, with a special equation number.

1 This

is a test footnote.

COMPLETE CLOSURE OF A GRAPH

483

ABCasdf asdf asdf asdf asd DEF asdf asdf asdf asdf asdf asdf asdf A normal line after math. Denition. This is the way a denition looks. This is text after the denition. First Multiplier Theorem. Let G be an abelian group with a ... All Further multiplier theorems have arisen in an attempt to weaken the condition. Multiplier Conjecture. The First Multiplier Theorem hods whithout the assumption that p > .
n 1. If n1 = 2 then the Second multiplier Theroem holds without the assumption, provided that one of the following conditions holds:

(XXX )

a. The rst situation. b. The second situation. c. The third situation. 2. If

n n1

= 3 then in the majority of cases the assumption may be removed.

Another list is done with itemize.

for every x A and for... This is an itemized list. This is an itemized list. This is an for every x1 , x2 and for every... This is an itemized list. This is an itemized list. This
is an itemized list. This is an itemized list. Line after itemized list and before theorem. Theorem 1 (Stinson) [8]. Proof. This is the proof. This is a theorem itemized list. This is an itemized list.

This is a special proof. This is a special proof that includes a table.

This is Here are

a small the

table contents

Corollary. This is the corollary. Lemma 2. This is a lemma.

484 Fig. 1. This is a gure caption. Fig. 2a. This is a lettered gure caption. Fig. 2b. This is a lettered gure caption.

QIU

Fig. 3. This is a long gure caption to see what happens when the caption is more than one line long. This is a long gure caption to see what happens when the caption is more than one line long.

3. NEW SECTION Theorem 3. This is a theorem Proof. This is the proof. Corollary. This is the corollary. Remark. This is a remark. This is an uncaptioned table in text. a smalla the tableb contents

This is Here are

a b

This is the rst note. This is the second note.

There is space above and below the table.

Table I. Table caption. One one one Two two two Three three three

Table II. This is an example table caption. As you can see, it will be as wide as the table that it captions. This is an example table caption. As you can see, it will be as wide as the table that it captions. One one one Two two two Three three three

This table is continued from the previous one, which doesnt have a bottom line to indicate that there is a continued table following.

486

QIU

ACKNOWLEDGMENTS The rst author would like to acknowledge the support of... and their kind hospitality during preparation of this manuscript.

APPENDIX
This is the appendix. If no appendix letter is given, we will add an A to the equation number: E (A1.1)

APPENDIX B
This is a lettered appendix. The letter given will be added to the equation number. E (B1.1)

APPENDIX: PSPACE PCP(LOG N)

This is an appendix with a title. A is added to the equation number to indicate that it is in an appendix. E This continued table has a lettered caption:
Table A. (continued) One one one Two two two Three three three

(B1.1)

Testing citations: [2] and [1]. REFERENCES

[1] Jacobs, E., Design Method Optimizes Scanning Phased Array, Microwaves, April 1982, pp. 6970. [2] Francis, M., Out-of-band response of array antennas, Antenna Meas. Tech. Proc., September 28October 2, 1987, Seattle, p. 14.

COMPLETE CLOSURE OF A GRAPH

487

2. IF YOU WANT TO USE BIBTEX FOR YOUR REFERENCES Following are the commands to use if you want to use BiBTEX to make your reference section. For information on how to use BibTEX for your article, see the documentation which will take you through the process step by step. If you use this form of bibliography, please remember to send your .bbl le to Wiley at the same time you send your .tex le. REFERENCES
[1] Barrett, J. W. and Morton, K. W. (1984). Approximate symmetrization and Petrov-Galerkin methods for diffusion-convection problems. Comput. Methods Appl. Mech. Engrg., 45:97122. [2] Benedetto, J. (1975). Spectral Synthesis. Academic Press, New York. [3] Benedetto, J. (1990). Uncertainty principle inequalities and spectrum estimation. In Byrnes, J. S. and Byrnes, J. L., editors, Recent Advances in Fourier Analysis, NATO-ASI Series C, pages 143182. Kluwer Academic Publishers. [4] Benedetto, J., Heil, C., and Walnut, D. Remarks on the proof of the Balian-Low theorem. Canad. J. Math. to appear. [5] Chui, C. K. and Wang, J. Z. A cardinal spline approach to wavelets. Proc. Amer. Math. Soc. to appear. [6] Daubechies, I. (1990). The wavelet transform, time-frequency localization and signal analysis. IEEE Trans. Inform. Theory, 36:9611005. [7] Doolan, E. P., Miller, J. J. H., and Schilders, W. H. A. (1980). Uniform Numerical Methods for Problems with Initial and Boundary Layers. Boole Press, Dublin. [8] Garca-Archilla, B. and Mackenzie, J. A. (1991). Analysis of a supraconvergent cell vertex nite volume method for one-dimensional convection-diffusion problems. Technical Report NA91/13, Oxford University Computing Laboratory, 11 Keble Road, Oxford, OX1 3QD. submitted for publication. [9] Heinrich, J. C., Huyakorn, P. S., Mitchell, A. R., and Zienkiewicz, O. C. (1977). An upwind nite element scheme for two-dimensional convective transport equations. Internat. J. Numer. Methods Engrg., 11:131143. [10] Heller, W. (1991). Frames of Exponentials and Applications. PhD thesis, University of Maryland, College Park, MD. [11] Hughes, T. J. R. and Brooks, A. N. (1985). A multi-dimensional upwind scheme with no crosswind diffusion. In Hughes, T. J. R., editor, Finite Element Methods for Convection Dominated Flows, pages 1935. ASME, New York. [12] Jameson, A., Schmidt, W., and Turkel, E. (1981). Numerical solutions of the Euler equations by nite volume methods using Runge-Kutta time stepping. AIAA Paper No. 81-1259. [13] Kellogg, R. B. and Tsan, A. (1978). Analysis of some difference approximations for a singular perturbation problem without turning points. Math. Comp., 32:10251039. [14] von Neumann, J. (1932, 1949, and 1955). Mathematical Foundations of Quantum Mechanics. Princeton University Press.

The Complete Closure of a Graph*

Ralph Faudree,1 Odile Favaron,2, Evelyne Flandrin,2 Hao Li2
1

Department of Mathematical Sciences Memphis State University Memphis, Tennessee, USA E-mail:rfaudree@math.utenn.edu LRI, Ura 410 CNRS Universite de ParisSud Orsay cedex, France E-mail:li@uparis.fr

Received November 19, 1992; accepted September 9, 1993

Abstract: We show the complete closure number cc(G) of a graph G of order n as the greatest integer...
c 1997 John Wiley & Sons, Inc. Numerical Methods Partial Differential Eqs 2: 481488, 1997

Keywords: elementary; abelian, K4 -free

I. INTRODUCTION AND NOTATION

This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction.

II. THE AUTOMORPHISM GROUP OF A COMPLETE (q 1)-ARC AND ITS B ORBIT

This is a test of a section with math in section head, and a section wrapping.
* Here is a title footnote. Here is more information suggested by Odile Favaron. Correspondence to: R. Faudree Visiting Scholar, Tanglewood Music Foundation, Lenox, Mass. USA Contract grant sponsor: Ciba-Geigy; Contract grant number: C-G c 1997 John Wiley & Sons, Inc. CCC 1063-8539/94/030117-13

486

QIU

If you use this form of bibliography, please remember to send your .bbl le to Wiley at the same time you send your .tex le.

REFERENCES
1. Barrett, J. W. and Morton, K. W. (1984). Approximate symmetrization and Petrov-Galerkin methods for diffusion-convection problems. Comput. Methods Appl. Mech. Engrg., 45:97122. 2. Benedetto, J. (1975). Spectral Synthesis. Academic Press, New York. 3. Benedetto, J. (1990). Uncertainty principle inequalities and spectrum estimation. In Byrnes, J. S. and Byrnes, J. L., editors, Recent Advances in Fourier Analysis, NATO-ASI Series C, pages 143182. Kluwer Academic Publishers. 4. Benedetto, J., Heil, C., and Walnut, D. Remarks on the proof of the Balian-Low theorem. Canad. J. Math. to appear. 5. Chui, C. K. and Wang, J. Z. A cardinal spline approach to wavelets. Proc. Amer. Math. Soc. to appear. 6. Daubechies, I. (1990). The wavelet transform, time-frequency localization and signal analysis. IEEE Trans. Inform. Theory, 36:9611005. 7. Doolan, E. P., Miller, J. J. H., and Schilders, W. H. A. (1980). Uniform Numerical Methods for Problems with Initial and Boundary Layers. Boole Press, Dublin. 8. Garca-Archilla, B. and Mackenzie, J. A. (1991). Analysis of a supraconvergent cell vertex nite vol ume method for one-dimensional convection-diffusion problems. Technical Report NA91/13, Oxford University Computing Laboratory, 11 Keble Road, Oxford, OX1 3QD. submitted for publication. 9. Heinrich, J. C., Huyakorn, P. S., Mitchell, A. R., and Zienkiewicz, O. C. (1977). An upwind nite element scheme for two-dimensional convective transport equations. Internat. J. Numer. Methods Engrg., 11:131143. 10. Heller, W. (1991). Frames of Exponentials and Applications. PhD thesis, University of Maryland, College Park, MD. 11. Hughes, T. J. R. and Brooks, A. N. (1985). A multi-dimensional upwind scheme with no crosswind diffusion. In Hughes, T. J. R., editor, Finite Element Methods for Convection Dominated Flows, pages 1935. ASME, New York. 12. Jameson, A., Schmidt, W., and Turkel, E. (1981). Numerical solutions of the Euler equations by nite volume methods using Runge-Kutta time stepping. AIAA Paper No. 81-1259. 13. Kellogg, R. B. and Tsan, A. (1978). Analysis of some difference approximations for a singular perturbation problem without turning points. Math. Comp., 32:10251039. 14. von Neumann, J. (1932, 1949, and 1955). Mathematical Foundations of Quantum Mechanics. Princeton University Press.

The Complete Closure of a Graph*

Ralph Faudree,1 Odile Favaron,2, Evelyne Flandrin,2 Hao Li2
1

Department of Mathematical Sciences Memphis State University Memphis, Tennessee, USA E-mail:rfaudree@math.utenn.edu LRI, Ura 410 CNRS Universit de ParisSud e Orsay cedex, France E-mail:li@uparis.fr
2

Received November 19, 1992; accepted September 9, 1993

Abstract: We show the complete closure number cc(G) of a graph G of order n as the greatest integer... c 1997 John Wiley & Sons, Inc. Nav Res Logist 2: 481486, 1997 Keywords: elementary; abelian, K4 -free

1.

INTRODUCTION AND NOTATION

This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction. This is the introduction.

2. THE AUTOMORPHISM GROUP OF A COMPLETE (q 1)-ARC AND ITS B ORBIT

This is a test of a section with math in section head, and a section wrapping.
* Here is a title footnote. Here is more information suggested by Odile Favaron.

Correspondence to: R. Faudree Visiting Scholar, Tanglewood Music Foundation, Lenox, Mass. USA Contract grant sponsor: Ciba-Geigy; Contract grant number: C-G c 1997 John Wiley & Sons, Inc. CCC 1063-8539/94/030117-13

Federal Reserve Bank of Richmond: Sample pages for Economic Quarterly

FEDERAL RESERVE BANK OF RICHMOND

ECONOMIC QUARTERLY
CONTENTS
Michael Dotsey Investing in Equities: Can it Help Social Security?

After tracing the history of the nancial problems facing the Social Security System, the author addresses the economic merits of one key recommendation for returning the system to viability. That recommendation involves investing a portion of the Social Security Trust Fund in equities. Economic analysis suggests that such a policy will have only minor effect on the governments ability to meet its obligations.

Alexander L. Wolman

Zero Ination and the Friedman Rule: A Welfare Comparison

According to standard monetary theory, optimal monetary policy involves slight deation. Central banks, however, advocate zero ination. Is there a signicant welfare difference between zero ination and optimal deation? The answer hinges on the behavior of money demand at low nominal interest rates. Estimates of a general money demand function imply that there is not a signicant difference: zero ination yields roughly 90 percent of the total benets to be gained by moving from 5 percent ination to optimal deation.

Author One and Article with Multiple Authors 17 Author Two In which itemized lists, verbatim, centering and a variety of theorem type environments are demonstrated.

Federal Reserve Bank of Richmond Economic Quarterly Volume 83/4 Fall 1997

Investing in Equities: Can it Help Social Security?

Michael Dotsey

ocial Security is in trouble. A recent report by the U.S. General Accounting Ofce (1997) indicates that absent any changes to the current system, payments to beneciaries will exceed revenues from payroll taxes in 2012, and by 2029 the Social Security Trust Fund will be depleted. That Social Security is in trouble is not really news. The system has a long history of being undernanced and the current difculties are not historically large. Recently, the 1994-1996 Advisory Council on Social Security issued its report with various recommendations for putting the system on rm nancial footing. From an economic perspective, making the Social Security System sound is not a difcult task. There exist a multitude of ways for doing so, but most involve either increases in taxes, reductions in benets, or both. Thus, any plan inherently involves difcult political decisions. However, one part of the solution that is included in each of the three separate plans that were presented to the Commissioner of Social Security was the recommendation that some portion of the current Trust Fund be invested in the stock market. By taking advantage of the higher returns earned by equities, this recommendation would seemingly reduce the increases in taxes or the reduction in benets that would be needed to return the Social Security System to nancial viability. In this article I address the economic merits of this recommendation. My analysis suggests that the ownership of the capital stock has very few consequences for the governments budget. The economic opportunities available to society are not increased by a transfer of capital from the private sector to the government. In short, there is no free lunch.
I wish to thank Douglas Diamond, Andreas Hornstein, Thomas Humphrey, Kent Smetters, and Alex Wolman for many useful suggestions and comments. The views expressed herein are the authors and do not represent the views of the Federal Reserve Bank of Richmond or the Federal Reserve System.

Federal Reserve Bank of Richmond Economic Quarterly Volume 83/4 Fall 1997

Federal Reserve Bank of Richmond Economic Quarterly

1. A BRIEF HISTORY The Inception of Social Security

Social Security was created in 1935 as an intergenerational transfer program from workers to retirees. Its design also provided for income redistribution among the elderly, because replacement rates (the ratio of the benet paid in the rst year of retirement to taxable earnings in the preceding year) are higher for low-income workers than for high-income workers. Social Security is a pay-as-you-go system.

A History of Problems
Over its history the Social Security System probably has never been sound. The chief reason is that benets were made more generous than originally intended and tax rates were not raised as fast as the 1939 Act prescribed.

2. INTERPRETING STRUCTURAL VARs: TECHNOLOGY SHOCKS AND AGGREGATE EMPLOYMENT FLUCTUATIONS

Tax rates did not reach 6 percent until 1960. Also, economic factors that interacted with the methodology for calculating benets increased the level of benets in unintended ways during the 1970s and placed the system under tremendous strain. Corrections to the methodology were not made quickly enough, and tax rates were not raised sufciently, so that the system almost defaulted in the early 1980s.

Actuarial Soundness

These calculations explicitly take into account interest payments and payments on principal from the ctitious trust fund. To make these payments, the government would have to increase the level of the debt, reduce spending, or increase tax revenue from other sources.1 Thus, total tax payments could be substantially higher if all forms of taxes are considered.
1 If the payments promised by Social Security are equivalent to payments promised on government bonds, then increasing the level of the measured debt to pay off these claims does not affect the overall indebtedness of the U.S. government. It just transfers a promise into an explicit security. Treating the promised Social Security benets in a similar way to any other government IOU implies that the true level of the government debt is closer to $17 trillion instead of the $5 trillion currently calculated.

M. Dotsey: Investing in Equities

Individual Decisions

To start the analysis, consider the problem of the individual agent who wishes to maximize lifetime well-being or utility subject to a budget constraint.
The individual owns some capital that earns (st ) in state s at time t. That is, the return to capital is stochastic and, while one observes the actual return in any given period, future returns are uncertain and depend on the state of the economy in that period.

Individuals also receive transfer payments from the government T r(st ) and pay taxes T (st ). These transfers and taxes may, but need not, depend on the state of the economy. Individuals also own government bonds, b(st ), that pay r(st ) units of consumption in all states in period t + 1. Finally, given a capital stock at the beginning of period t, agents choose how much capital to bring into next period, k(st ) and how much to consume this period c(st ). Formally, the representative agent maximizes discounted expected lifetime utility max
t,S t

t u[c(s t )] (s t )

subject to per-period budget constraints in each possible state st . c(s t ) + bd (s t ) + k(s t ) w(s t )n + (s t )k(s t1 ) +(1 + r(s t1 ))b(s t1 ) + T r(s t ) T (s t ), where w is the real wage rate, n is exogenous labor supply, and is the rate of return on capital.
For simplicity, I assume that capital fully depreciates each period. Thus, agents are maximizing their utility, taking into account expectations of all possible future events. In the notation above, st is the realization of one of nitely many states of the economy at time t. s t represents a particular history of realizations up to time t. That is, s t = (s0 , s1, ...st ) is a particular history of events up to time t. The set S t represents all the possible histories that can occur.

Each event occurs with probability (st ) and each history occurs with probability (s t ). Each agent rents out labor and capital to rms in competitive rental markets and earns the appropriate marginal product of each factor.
The Government

Each period the government makes some transfers, collects some taxes, and adjusts its portfolio by either issuing or repurchasing some government bonds or buying or selling some capital, x, (or claims to the capital, which amount

Federal Reserve Bank of Richmond Economic Quarterly

to the same thing). In each state, the governments net holding of assets obeys bs (s t ) x(s t )b(s t1 )[1 + r(s t1 )] + T r(s t ) T (s t ) (s t )x(s t1 ). (2) It is clear from this expression that, all other things equal, an increase in the capital stock held by the government at time t-1 reduces the taxes that are necessary to maintain the same net asset position. The experiment we are interested in, however, is not what happens if someone donates an extra unit of capital to the government but what happens when the government increases its holdings of capital by issuing additional debt. c(s t ) + k(s t ) + x(s t ) = A(st )(k(s t1 ) + x(s t1 )) n1 and bs (s t ) = bd (s t ). (4) Equation (3) indicates that the amount consumed plus invested must equal the output produced in the current period, and equation (4) requires that the supply of bonds issued by the government must be equal to the demand for these bonds by the public. (3)

Table 1 Unit Root Statistics

Variable yt mt mt

ADF 2.53 2.40 2.76

95 Percent Condence Intervals for ADF Detrended Data Demeaned Data 2.90 (0.89 (0.90 (0.86 1.02) 1.03) 1.02) 1.01)

(0.84

Notes: The regression used to calculate the ADF statistics included six lagged differences of the variable. All regressions were carried out over the period 1949:1 to 1990:4 using quarterly data except those involving t , which began in 1950:1. Tablenotes that dont have an argument in square brackets format without a title.

3. CONCLUSIONS
Current proposals for modifying Social Security have one key feature in common: namely, investing part of the trust fund in equities. It is hoped that such a reallocation of the trust funds portfolio will make the system more viable, and maintain the level of benets without resorting to large increases in taxes. In this article, I analyze the effects of doing so in some basic economic models. The results are not encouraging. Even though capital on average earns a higher rate of return than bonds, the government is not able to take much advantage of this differential, because only the ability to shift risk matters. The results in

M. Dotsey: Investing in Equities

Table 2 Effects of Government Ownership of Capital (only labor is taxed)

Fraction of capital owned Average tax rate Standard deviation of tax rate Average capital stock Standard deviation of capital stock 0 0.1059 0.0074 0.1059 0.0139 2.5 0.1054 0.0082 0.1061 0.0141 5 0.1049 0.0089 0.1063 0.0143 10 0.1041 0.0105 0.1066 0.0147

Table 3 Effects of Government Ownership of Capital (all income is taxed)

Fraction of capital owned Average tax rate Standard deviation of the tax rate Average capital stock Standard deviation of the capital stock 0 0.0610 0.0042 0.1420 0.0163 2.5 0.0606 0.0048 0.1421 0.0165 5 0.0603 0.0053 0.1422 0.0166 10 0.0596 0.0064 0.1425 0.0169

Table 4 Example showing compound numbers lining up on the decimal point

First Column 23.5559 423.59 1.201 Second Column 356.33 3.234 66.4 Third Column 34.9 4.999 466.99

Table 5 Example showing the same table as above but using \narrowtable to keep the table from spreading out to the width of the page
First Column 23.5559 423.59 1.201 Second Column 356.33 3.234 66.4 Third Column 34.9 4.999 466.99

Zero Inflation and the Friedman Rule: A Welfare Comparison

Alexander L. Wolman

Moral HazardThe effect of insurance on insureds behavior.

here has been a distinct trend in recent years for central banks to emphasize low and stable ination as their primary goal. In many cases zero inationor price stabilityis promoted as the ultimate longrun goal (Federal Reserve Bank of Kansas City 1996). Economic theory also stresses the benets of low ination. However, in contrast to the current fashion among central banks, one of the most famousand robustresults in monetary theory is that the optimal rate of ination is negative: in many economic models in which money plays a role, welfare is maximized when the ination rate is low enough so that the nominal interest rate is zero. Central bankers are certainly aware of this result, yet one never hears them seriously advocating a long-run policy of deation (negative ination). How much welfare is lost from a zero ination policy in comparison to an optimal deation policy? As we will see, the shape of the economys money demand function with respect to nominal interest rates holds the key to answering the question. Lucas (1994) argues for a specication where real balances increase toward innity as the nominal interest rate approaches zero. He nds that zero ination is not much of an improvement over moderate ination but that optimal deation offers sizable benets. The analysis to be
This article is based on the third essay in my 1996 doctoral dissertation at the University of Virginia. I would like to thank Robert King, my dissertation advisor, for his support. Thanks also to Michael Dotsey, Robert Hetzel, Andreas Hornstein and Thomas Humphrey for their comments. The views expressed here are not necessarily those of the Federal Reserve System or the Federal Reserve Bank of Richmond.

Federal Reserve Bank of Richmond Economic Quarterly Volume 83/4 Fall 1997

Federal Reserve Bank of Richmond Economic Quarterly

Figure 1 How to Include .eps Files

local maximum y = f (x ) local maximum x1 a local minimum x3 x4 x5 x6 x7 x8 x9 local minimum b

x2

local minimum

Notes: The values for the local minimum and local maximum were supplied by a statistical analysis of the nancial institutions involved. Source: Data supplied by McGraw-Hill nancial services.

presented supports a different conclusion: reducing ination from a moderate level to zero entails substantial welfare benets, and the additional benet to be achieved by optimal deation is small. This analysis is based on estimating a general money demand function that nests the one preferred by Lucas. The estimates imply a satiation level of real balances, and this proves important for the comparison of zero ination and optimal deation.1 The original analysis of the relationship between money demand and the welfare cost of ination is credited to Bailey (1956). In Section 1, I review both Baileys analysis and Friedmans (1969), whose Friedman rule is the famous result previously mentioned. I then describe informally Lucass (1994) recent work on quantifying the costs of deviating from the Friedman rule. Section 2 discusses the transactions-time approach to modeling money demand, which guides the new money demand estimates given in Section 3. Those estimates are used in Section 4 for welfare analysis similar to Lucass. Although the analysis suggests that the Friedman rule may not offer much of a benet in comparison to zero ination, it does not explain why central banks do not choose to pursue deation. Section 5 thus points out several channels absent from my analysis through which ination may have welfare effects. These
1 Chadha, Haldane, and Janssen (1997) have performed an analysis similar to this article using U.K. data. They emphasize a distinction between short-run and long-run money demand.

A. L. Wolman: Zero Ination and the Friedman Rule

Table 1 Evidence on Missing M2 during the 1990s

Panel A Regression A Actual Predicted M2 M2 Growth Growth Error Growth Cumulative Level Percentage (billions) 1990Q4 1991Q4 1992Q4 1993Q4 1994Q4 1995Q4 1996Q4 4.0 3.0 1.8 1.4 0.6 3.8 4.5 6.4 3.6 6.4 4.8 3.0 3.5 3.9 2.3 0.5 4.5 3.4 2.4 0.3 0.5 1.78 2.52 71 91 257 392 489 495 495 2.2 2.7 7.5 11.2 13.9 13.6 13.0 6.5 3.3 5.9 5.0 2.6 4.2 4.0 2.4 0.3 4.0 3.6 2.0 0.4 0.4 1.78 2.40 Predicted M2 Growth Panel B Regression B Error Growth Cumulative Level Percentage (billions) 80 92 239 381 464 500 505 2.4 2.7 6.9 10.9 13.2 13.7 13.3

Year

Mean Error (19901996) RMSE

The predicted values are generated using the regressions eported in Table 1. Regressions are estimated from 1960Q4 and dynamically simulated from 1990Q1 to 1966Q4. RMSE is the root mean squared error.

11

A. L. Wolman: Zero Ination and the Friedman Rule

13

APPENDIX: HERE IS AN APPENDIX TITLE THAT IS PRETTY WIDE

For money, from 1915 to 1970 I use the M1 series from Friedman and Schwartz (1963) and the Federal Reserve, reproduced as series B109 and B110 in LTEG. From 1970 to 1992 I use FM1 from Citibase. Both series are in billions of dollars and are deated by the POPM population measure mentioned above. Pre-1946, that population measure is the annual series in the Bureau of the Censuss Historical Statistics (Series A-6-8, p. 8).

APPENDIX
As mentioned above, I use nominal wage data. Also, since the raw wage data is hourly, I multiply by the number of hours in a quarter (2,184) to get a quarterly wage. From 1915 to 1946, I reate total compensation per hour at work for manufacturing production workers, using the CPI. The former is series B70 from LTEG; it is in 1957 dollars. The latter is m04045 from the NBER database. From 1947 to 1992, I use average hourly earnings of production workers in manufacturing, in current dollars. This is series LEHM from Citibase. Finally, since the relevant wage variables from a theoretical perspective are after-tax wages, I multiply wages by the average marginal tax rates provided by Barro and Sahasakul (1983) and updated through 1992 in the manner they describe.4

APPENDIX A
Here is a lettered, but not titled appendix.
4 The conclusions reached above are unchanged if before-tax wage rates are used.

16

Federal Reserve Bank of Richmond Economic Quarterly

REFERENCES
Amemiya, Takeshi. Advanced Econometrics. Cambridge, Mass.: Harvard University Press, 1985. Andreyenkov, Vladimir G., Vasily D. Patrushev, and John P. Robinson. Rhythm of Everyday Life: How Soviet and American Citizens use Time. Boulder, Colo.: Westview Press, 1989. Bailey, Martin J. The Welfare Cost of Inationary Finance, Journal of Political Economy, vol. 64 (April 1956), pp. 93110. Ball, Laurence. Credible Disination with Staggered PriceSetting, American Economic Review, vol. 84 (March 1994a), pp. 28289. . What Determines the Sacrice Ratio, in N. Gregory Mankiw, ed., Monetary Policy. Chicago: The University of Chicago Press, 1994b. Barro, Robert J., and Chaipat Sahasakul. Measuring the Average Marginal Tax Rate from the Individual Income Tax, Journal of Business, vol. 56 (October 1983), pp. 41952. Baumol, William J. The Transactions Demand for Cash: An InventoryTheoretic Approach, Quarterly Journal of Economics, vol. 66 (November 1952), pp. 54566. Benabou, Roland. Ination and Markups: Theories and Evidence From the Retail Trade Sector, European Economic Review, vol. 36 (April 1992), pp. 566-74. Bureau of the Census. Historical Statistics of the United States, Colonial Times to 1970. Washington: U.S. Department of Commerce, 1975. Chadha, Jagjit S., Andrew G. Haldane, and Norbert G. J. Janssen. ShoeLeather Costs Reconsidered. Manuscript. Bank of England, January 1997. Correia, Isabel, and Pedro Teles. The Optimal Ination Tax, Discussion Paper 123. Institute for Empirical Macroeconomics, Federal Reserve Bank of Minneapolis, August 1997. Dotsey, Michael, and Peter N. Ireland. The Welfare Cost of Ination in General Equilibrium, Journal of Monetary Economics, vol. 37 (February 1996), pp. 2947. Federal Reserve Bank of Kansas City. Achieving Price Stability. Kansas City: Federal Reserve Bank of Kansas City, 1996.

Academic Press: Sample Pages for A Style Journals

L1 Estimates for Maximal Functions and Riesz Transform on Real Rank 1 Semisimple 123 Lie Groups
Takeshi Kawazoe
Department of Mathematics, Kieo University, 3-14-1, Hiyoshi, Kohokuku, Yokohama 223, Japan and Departement de mathmatiques, Universit` de Nancy 1, e e 54506 Vandoeuvre-les-Nancy, France E-mail: kawazoe@sfc.keio.ac.jp Received January 20, 1994; revised October 1, 1997; accepted February 17, 1998 Let G be a real rank one semisimple Lie group and K a maximal compact subgroup of G. Radial maximal operators for suitable dilutions, the heat and Poisson maximal operators, and the Riesz transform, which act on K-biinvariant functions on G. Radial maximal operators, and the Riesz transform, which act on K-bi-invariant functions on G, satisfy the LP -norm inequalities for p > 1 and a weak type L1 estimate.

1. INTRODUCTION Let G be a real rank one connected semisimple Lie group with nite center, and so on. Let G be a real rank one connected semisimple Lie group with nite center. 1.1. Sample Subsection Let G be a real rank one connected semisimple Lie group with nite center, and so on. Let G be a real rank one connected semisimple Lie group with nite center, and so on. 1.1.1. Sample Subsubsection

Let G be a real rank one connected semisimple Lie group with nite center, and so on. Let G be a real rank one connected semisimple Lie group with nite center. Sample paragraph. Here is a sample paragraph. Here is a sample paragraph. Here is a sample paragraph. Here is a sample paragraph. Here is a sample paragraph. Here is a sample paragraph.
2

L1 Estimates for Maximal Functions and Riesz Transform on Real Rank 1 Semisimple 123 Lie Groups
Sample Subtitle Here Takeshi Kawazoe
Department of Mathematics, Kieo University, 3-14-1, Hiyoshi, Kohokuku, Yokohama 223, Japan and Departement de mathmatiques, Universit` de Nancy 1, e e 54506 Vandoeuvre-les-Nancy, France E-mail: kawazoe@sfc.keio.ac.jp Communicated by Charles Chui Received January 20, 1994; revised October 1, 1997; accepted February 17, 1998

DEDICATED TO THE MEMORY OF NILS BOHR

Let G be a real rank one semisimple Lie group and K a maximal compact subgroup of G. Radial maximal operators for suitable dilutions, the heat and Poisson maximal operators, and the Riesz transform, which act on K-biinvariant functions on G. Radial maximal operators, and the Riesz transform, which act on K-bi-invariant functions on G, satisfy the LP -norm inequalities for p > 1 and a weak type L1 estimate.

1. ANALYTIC FAMILY OF FRACTIONAL INTEGRALS: BASIC PROPERTIES Here is some text. Here is some text. Here is some text. Here is some text. Here is some text.1 2. TOEPLITZ FAMILIES AND HIGHER SPECTRAL FLOWS: A HEAT KERNEL COMPUTATION FOR THE INDEX BUNDLE OF TOEPLITZ FAMILIES Here is some text. Here is some text. Here is some text. Here is some text. Here is some text. Here is some text. Here is some text. Here is some text. Here is some text.
1 Here

is a sample footnote. 3

Academic Press: Sample Pages for C Style Journals

Platonic Orthonormal Wavelets1

Muran Ozaydin and Tomasz Przebinda2
Department of Mathematics, University of Oklahoma, Norman, Oklahoma 730193 Communicated by Ph. Tchamitchian Received June 20, 1995; revised February 10, 1997

We classify all orthonormal wavelets which occur in the L2 space of the faces of a platonic solid.

Key Words: orthonormal wavelets; platonic solid

CONTENTS
0. Introduction. 1. The Automorphism Group of a Complete (q 1)-Arc and its B orbit. 2. Listing Environments. 3. Showing Theorems Renumbered with New Section. A.1. Existence and Uniqueness of Solution of the Poisson Equation. B.1. Unique Solution of the Poisson Equation.

0. INTRODUCTION This is the introduction. This is the introduction. This is the introduction. This is the introduction. This group acts on the real line R by the formula (a, b)x = ax + b(a, b) G, x R and on the space L2 (R) of square integrable functions on R: (a, b)v(x) = |a|1/2 v (a, b)1 x = |a|1/2 v (a1 , (x b) , v L2 (R). (1) This is the introduction. This is the introduction. This is the introduction.

Some journals require unnumbered text to appear at the bottom of the title page. This is an example of such an unnumbered footnote.
1 Research

partially supported by NSF Grant DMS 9204488. may be sent to Prof. Przebinda, c/o Department of Mathematics. 3 E-mail: ozaydin@math.uokla.edu; Przebinda@math.uokla.edu.
2 Correspondence

1. THE AUTOMORPHISM GROUP OF A COMPLETE (q 1)-ARC AND ITS B ORBIT This is a test of a section with math in section head, and a section wrapping. 1.1. Subsection This is the subsection. This is the subsection. This is the subsection. This is the subsection. 1.1.1. This is Subsubsection This is the subsubsection. This is the subsubsection. This is the subsubsection. This is the subsubsection. This is the subsubsection. This is Paragraph. This is paragraph. This is paragraph. This is paragraph. This is paragraph. This is paragraph. This is paragraph. This is paragraph. 2. LISTING ENVIRONMENTS In 3D, two types of inner tetrahedra can be removed: Hat tetrahedra. They are characterized by three boundary faces and one inner face. The consequence of their deletion is to shorten a branch of the skeleton. The vertex v associated with a hat tetrahedron is called an extremity of a skeleton. Salient tetrahedra. They are characterized by two boundary faces, two inner faces, and one inner edge. 1. The nomotopy class of the shape is not modied when T is removed. 2. T is not relevant according to a certain criterion. Dierent removing criteria are discussed in Section 4.3. By duality, when the simplex T is removed from the current shape, is associated Voronoi vertex v and all the Voronoi elements passing through v are also removed from the skeleton. (i) invariants can be computed using simple formulae involving ratios of polynomials; (ii) many congurations are determined up to a collineation by their associated invariants; (iii) a data base of invariants can be searched eciently using standard methods from computer science. ...where NBG = number of boundary groups in the augmented aspect hierarchy NFA = number of faces in the augmented aspect hierarchy NV = number of volumes in the augmented aspect hierarchy. Given { n }, update { n+1 }k=1 by the following steps: i,j,k i,j,k Step 1. Compute {n }k=1 by solving i,j,k h n = n with the boundary condition (2.15).

EXISTENCE AND UNIQUENESS OF SOLUTION OF THE POISSON EQUATION It is well known that there exists a unique soloution of the Laplace equation with Neumann boundary conditions in the context of orthogonal grids. A.1.1. Homogeneous Poisson Equation. The homogeneous problem reads... APPENDIX: PSPACE PCP(LOG N) This is an appendix with a title. A is added to the equation number to indicate that it is in an appendix. E (A.1)

A.1.

APPENDIX B This is a lettered appendix. The letter given will be added to the equation number, and to section numbers. E (B.1)

B.1. UNIQUE SOLUTION OF THE POISSON EQUATION It is well known that there exists a unique soloution of the Laplace equation with Neumann boundary conditions in the context of orthogonal grids. B.1.1. Homogeneous Poisson Equation. The homogeneous problem reads... APPENDIX C This is an appendix title Here is another appendix. E ACKNOWLEDGMENT
The authors thank the National Science Foundation for its generous support of our work. Also, the chairman of our department has shown great understanding in allowing us the necessary time to develop the concepts found in this paper.

(C.1)

REFERENCES
1. Anderson, Terry L., and Fred S. McChesney. (n.d.). Raid or Trade? An Economic Model of Indian-WhiteRelations, Political Economy Research Center Working Paper 931. 2. Lacey, W.K. (1968). History of Socialism. Ithaca, NY: Cornell University Press. 3. Oliva, Pavel. (1971). Sparta and Her Social Problems. Amsterdam: Adolf M. Hakkert. 4. Zimmern, Alfred. (1961). The Greek Commonwealth: Politics and Economics in Fifth-Century Athens, 5th ed. New York: Galaxy Book, Oxford University Press.

Kluwer Academic Publishers: Sample Pages for Small Style Journals

Dynamics and Control, 5, 275282 (1997)

c 1997 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands.

Explorations of an Incremental, Bayesian Algorithm for Categorization*

JOHN R. ANDERSON AND MICHAEL MATESSA

jas@andrew.cmu.edu

Department of Psychology, Carnegie Mellon University, Pittsburgh, PA 15213 Received November 25, 1995; Revised March 30, 1996 Editor: Dennis Kibler Abstract. An incremental categorization algorithm is described which, at each step, assigns the next instance to the most probable category. Etc. Keywords: Bayesian inference, concept learning, human learning, incremental algorithms

1. Introduction We have been engaged in a project to understand human categorization which has let us to develop a machine learning algorithm. Our research began as an exploration of the issue of whether human categorization can be considered optimal. To pursue the issue of whether human cognition is optimal requires specifying two things. First we need a denition of optimality. second, we need a specication of the structure of the environment so we can determine what behavior is optimal in that environment. 1.1. Preliminary denition of optimization Our assumption has been that the goal of categorization is to predict unknown features of various objects that we encounter. 1.1.1. The structure of the environment Our theory of the structure of the environment has been focused the structure of living things (arguably, the largest portion of the objects in the world) because of the aid biology gives in objectively specifying the organization of these objects. Formally, this amounts to calculating: gi (y|f ) =
x

P (x|Fn )fi (y|x)

(1)

where gi (y|Fn ) is the function specifying the probability an object will display a value y on a dimension i given Fn the observed feature structure of all the objects.

Now we give thanks!

276
Here is an example of a wide equation: P (k)
k i y

YOU-LIANG GU AND YANGSHENG XU

fi (y|k)2
k

P (k)
i y

fi (y|k)2

(2)

This is an example of a split equation, moving the top half to the left and the bottom to the right.
k

P (k)

fi (y|k)2
k

P (k)

fi (y|k)2

P (k)

fi (y|k)2

(3)

1.2. Footnote example Here is some text with footnotes in it. Here is some text with footnotes in it. Here is some text with footnotes in it.1 More text.2 More text.3 1.3. Indented text In an example satises the seed of a clause, then it satises the clause as well. In addition, seeds have the following property: If a seed of clause cT , and example x satises cT but not c, then x has at least one (*) attibute in cT that is not in c. The procedure below... 1.4. Bulleted List Here is an example of a bulleted list: Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here.

1.5. Numbered List Here is an example of a numbered list: 1. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. 2. Some text here. Some text here. Some text here. (A) Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here.

ADAPTIVE CONTROL OF SPACE ROBOT SYSTEMS

277

(B) Some text here. Some text here. Some text here. i. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. Some text here. ii. Some text here. Some text here. Some text here. 1.6. To Illustrate an Algorithm This is the command to use when you want to illustrate an algorithm with some pseudo code. A backslash followed with a space will indent the line. Every line will be printed as it is seen on the screen. Blank lines will be preserved. Math and font changes may be used. The command \bit will produce bold italics if you are using PostScript fonts, boldface in Computer Modern. \note{} will position the note on the right margin. A backslash followed by a space will provide a space a bit wider than the width of 2 Ms. 1. Evaluate-Single-FOE (xf , I0 , I1 ): 2. I+ := I1 ; 3. (, ) := (0,0); 4. repeat /*usually only 1 interation required*/ + 5. (sopt E ) := Optimal-Shift (I0 ,I ,I0 ,xf ); 6. (+ , + ) := Equivalent-Rotation (sopt ); 7. (, ) := (, ) + (+ , + ); 8. I+ := Derotate-Image (I1 , , ); 9. until (|+ | max & |+ | max ); 10. return (I+ , , , E ). 11. End pseudo-code. 1.7. Figures Here is an example of a gure with .5 inch space left for the illustration:

Figure 1. This is a gure caption. This is a gure caption. This is a gure caption.

2. Making Tables Use caption on top of the table. Use \hline at the top of the table, underneath the column headers and at the end of the table. You are discouraged from using vertical lines in tables, but it you must include vertical lines, you must also use \savehline instead of \hline or there will be a gap between

278

YOU-LIANG GU AND YANGSHENG XU

the vertical and horizontal lines. (\hline has been redened to add some vertical space above and below it.) The following form will spread out to the width of the page:
Table 1. This is an example table caption. As you can see, it will be as wide as the table that it captions. One one one Two two two Three three three

Table 2. This is a table caption and will t the width of the table that it is captioning. One one one Two two two Three three three

2.1. Unusual Tables There are three cases in which authors have felt the need to make a table other than the plain tabular table in this style. These more unusual tables are: tables with vertical lines; tables that do not use tabular; and tables that have a number of tabulars nested. In this section we will show how to make these tables. 2.1.1. Vertical Lines Notice in the previous examples that no vertical lines were used. If at all possible to make your meaning clear without vertical lines, please leave them out. However, if you really must use vertical lines, you must use \savehline instead of \hline and you must add another letter to the preamble.

280

YOU-LIANG GU AND YANGSHENG XU

2.1.3. Nesting Tabulars The table macros are made to automatically format the caption so that it is the width of the table and the caption appears at the top of the table. This works ne as long as you use the normal \begin{tabular}.. to make your table, and you dont nest another \begin{tabular}.. with it. However, if you want to use some other way of formatting your table, or if you want to nest one or more tabulars within the table, you must start with \begin{specialtable}, as you see in the example below. Notice that the caption is given at the top of the table.
Table 4. Quantitative and qualitative descriptions

Quantitative Time (a) 3 sec. 4 sec. 5 sec. Level 0.01 m 0.23 m 0.31 m

Qualitative

Level(between(t1 , t2 )) = (between(zero, top), increasing)

(b)

Amount = 2.5 Level + 0.7 Level2

Amount = M + (Level)

3. Theorems, Proofs, Examples, etc. Example: Consider an example in which BS is the structure... The term P (BX ) is our probabilityprior to observing the data in database Dthat the data-generating process is a belief network with structure BS1 . Theorem 1 LEARN-MONOTONE-K-CNF makes at most (n + 1)K mistakes on any monotone K-CNF formula. (Recall that n is the size of the largest example seen. Proof: Thus on each mistake, we decrease the cost by at least 1, and since the cost is never negative, the algorithm makes less than (n + 1)K mistakes total. The running time of this algorithm is clearly polynomial in size(fT ) and the length of the longest example seen. Proof: This is a proof that ends with an equation. In such a case the author must enter \inmathqed within the equation to make the end of proof symbol position correctly. Proof of Theorem A.1: This is a proof with a particular term. Call for the particular term after proof, i.e., \begin{proof}[Proof of Theorem A.1]. In this section, we present an efcient formula for computing P (BX , D). We do so by rst introducing four assumptions.

Dynamics and Control, 5, 283282 (1997)

c 1997 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands.

Contributing Authors

D. K. Hammer initially studied Technical Physics at the Technical University of Vienna and attained his masters degree in 1966. During the next 9 years, he was a staff member of the physics department: rst as a research assistant, then as an associate professor and nally as an assistant professor. During this period, his interest shifted gradually from physics via electronics to computer science. His last position was head of the data acquisition and process control group. In 1976 he switched to industry and became head of a system software development department at Philips Vienna. In this function he was responsible for the architecture and software development of the Philips P5000 word-processing system and the Philips P2000 personal computer. Since 1987 he is a full professor at the Computing Science Department of the Technical University of Eindhoven, The Netherlands. His research area is the construcetion of embedded systems for process control applications, including the networking and software engineering aspects. In addition to its academic position, Prof. Hammer is active in many committees hes strong relations with many industrial companies where he also works as an advisor.