SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 
737 
Case where Consumed Income is equal to Capital Income 
In the case where consumed income Rc is equal to capital 
income R,. we have from (116-16) 
116-22) 
A 
R,=R_ +1 
and from (116-19) we have then 
116-23) 
R tu K w 
Thus in this case the whole increase of capital comes from 
primary income. There is no contribution from the capitalisa- 
on of interest on capital. 
From (116-21) and (116-23) we have in this case 
116-24) 
a — ir 
Mlustration by a Simple Example 
The significance of the preceding discussion can easily be 
understood by examining a simple example. 
Consider a stationary process in which the rate of interest 
is zero and assume that the lag between use of a factor input 
and its appearance in consumed income Rg is the same for all 
11] Allais - pag. 41