Abstract

^* Professor of Economics, Texas Southern University and Professor Emeritus of Economics, University of Houston, respectively. The authors are grateful for helpful comments on previous drafts to Joseph D. Haley, Rolando F Peláez, and especially, Robert L. Winkler and three anonymous referees of this journal. Gerald W. Olson's paper, “Statistical Reliability of Future Earnings Projections,” presented at a NAFE session of the March 1995 meeting in New York City of the Eastern Economics Association, raised the issues discussed here and motivated this research. The authors' interest in the topic was originally stimulated by Cummins and Derrig (1993, footnote 21) The authors, alone, are responsible for the remaining errors.