SEMAINE D ETUDE SUR LE ROLE DE L ANALYSE ECONOMETRIOUE ETC.

sented by a convergent Taylor series for any value of 8. It is
worth remarking that in most of the cases which can reasonatly
be envisaged, the coefficient ¢ remains relatively small, where
apon the properties of the model are quite similar to those of
‘he exponential model.

Amortization of Primary

Tncor

333. The relationship between the amortisation function ¢ (6,
and the usually accepted notion of amortisation raises a number
of problems to which allusion has already been made (!). It is
of interest to examine these problems in the light of the results
which have been obtained.

1) In the first place, the usual definition considers investment
 as occurring when an already completed investment good
begins its productive career. By contrast, the act of investment
 is considered in this paper as taking place when the
primary inputs are furnished. A distinction must therefore be
made between the amortisation of primary income and the
amortisation of investment. It further follows that under the
usual definition, amortisation contains an element of interest as
well as the depreciation of primary inputs, whereas in the
present paper, amortisation relates only to the primary input
content of the investment.

2) A part of the primary income invested at a given
instant ¢ emerges in the global producion P* of consumption
and investment goods at instant (£40). The primary inputs
which correspond to the latter are thus reintroduced into the

Allais - pag. 15