SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC. 511 
be made large by operating with a negative and numerically 
large value of m. However, experience in recent years from 
many countries has shown very clearly that it is, politically, 
very difficult to get m very much below zero. In fact, if go- 
vernment investment ko is of some size, it has proved next to 
impossible to make even (m - ko) substantially negative (ex- 
cept, perhaps, through the camouflage of an inflationary pro- 
cess yielding « unintended » higher tax returns). As a practical 
assumption in the present context we shall, therefore, impose 
the constraint that 
4.3) Minimum value of (m - & 
Consequently, we find that the maximum value of kp is limited 
by the government policies for x, and k, as determined by 
(2.5) and (1.6), respectively, and by the lowest value of xp 
that can be obtained under the constraint (4.3). This implies 
that 
(4.4) 
na 
J, max 
. 
Jai 
From (4.4) and (4.2) it then follows that it may be reason 
able to determine A(#) in (4.7) by setting 
4.5) Alf) = 
y 
»—0) [(I—x)(1—y)aK— 8]. 
We then obtain the following differential equation describing 
the development of * stal canital under the full-employment fiscal 
policy consider. 
4.6) 
CC Isinw/- 
«raavelmo - pag.