SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 
1 
TX ITIONG 
AND ASSUMPTIONS 
505 
We shall carry out our analysis under the assumption of 
a closed economy consisting of two sub-sectors, a private sector 
and a public, or government, sector. We shall need the follow- 
ing variables in the models to be considered. 
(1) x(t) = total net national product 
(2) «xp(t) = part of x consumed by private sector 
3) xo(" - part of x consumed by public sector (« collective 
consumption ») 
(4) ke(t) = part of x representing private net investment 
(5) Ro({\ = part of x representing public net investment 
(6) RC, Rp(t) + Rolf) 
(7 K total stock of productive capital of all kinds, in 
the whole economy 
disposable income of the private sector 
rate of total government deficit spending 
(8) w(t 
(9) ml 
All variables are to be regarded as in constant prices 
Except for K, the variables are all flows, i.e. they have tae 
dimension of « per unit of time ». More information concern- 
ing the meaning ascribed to the variables is given implicitly 
by the following definitional relations (using hereafter the sim 
pler notation of x, xp, etc. instead of x(£), xp(: -* ° 
2.1) 
(2.2) 
(2.7) 
Haavelmo - pag.