SEMAINE D ETUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC. 513 
initiative concerning investment is left in the hands of private 
nvestors. 
It is interesting to compare the two extreme cases &=0 and 
>=1. In the first case there is no investment activity on the 
part of the government. The second case corresponds, formally, 
to a situation where the government is the sole investor. This 
second case need not, however, be interpreted in such a strict 
sense. It may well include the case where the government is 
not actually an investor but merely acts as planning and co- 
ordinating body for all investments in the community. (In- 
deed, various fiscal measures, other than a simple policy of 
deficit spending as discussed above, may well be useful in 
order to implement such a general investment program.‘ From 
‘4.6) we can then draw the following conclusion 
Conclusion 
If all investment is private (8 =0), the trend rate of growth 
will be one half of the trend rate of growth when all investment 
is public or publicly directed, (8=1). 
In judging these rather strong conclusions it is, of course, 
essential that we keep in mind the assumptions on which the 
results are based. Thus, to mention only one thing, we have 
not even touched upon the relative merits of technical efficiency 
of public vs. private investment activity. Nevertheless, the 
results obtained show a definite tendency to reduced growth 
because of fluctuations in private investment, a tendency which 
cannot be waved aside as just a peculiarity of our special model 
The model has several other rather interesting aspects. 
Thus, for example, the rate of accumulation of « un- 
founded wealth » of the private sector will, on the average 
account for a part of total accumulation which is the larger 
the higher is the share (- ¢&) of private investment. How thi: 
Haavelmo - pag. .