SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC.

003

From this relation it is possible to demonstrate that real consumad
 national income is maximised when the rate of interest : is
equal to the rate of growth ¢ of primary income (Table III).

4) It is possible to illustrate the theory by a very general model
(Table IV). I assume only that the production function is logarithmicallv
 linear and that the elasticities

3

can be considered over very large rang
independent of # but dependent on 6).
Thus we derive the expression for real consumed national
come as

in

LR (f) = La?) +

. A
a
la #

and we can calculate the different macroeconomic quantities
function of the Laplace transform d(u) of the elasticity B(A)
particular we finally reach the expressior

11.
n

where y is the capital output ratio C/R, : the rate of interest, p the
rate of growth of primary income R, (the Services cf Labor and
national resources), k the coefficient of homogeneity the production
 function and ®, a constant equal to the vil. “ for i—o
Roy is the maximum value of R, attained °

xy

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Allais - pag. 297