SEMAINE D ETUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 731

where P’ is written for G.N.P., and A’ represents the amortisation
 relative to the range of durable goods for the economy
as a whole, per unit of time (,.
Further, from (1.6-5) wc have

116-8)

with

(116-9)

116-10)

where I's and I'y denote gross and net investment respectively
Under the existing convention of national accounting, captal
 is for all practical purposes defined as goods whose life
expectancy exceeds one year, and indeed in practise, as goods
whose life expectancy is at least five years, the shortest period
over which amortization is calculated.
As a result of this convention, the lining of a Martin oven,
which normally lasts a few months, is written off as an operat-‘ng
 expense, whereas the structure of the oven is considered
1s an investment.

With rules of this type, it is generally found that

116-11)

K Re

n wich K is of the order of 0.1 to 0.z.

(!) ALLAIS (1954), Les Fondements comptables de la macroéconomique
The Accounting Basis of Macroeconomics).

SH

Allais - pag. 35