SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC. 511

be made large by operating with a negative and numerically
large value of m. However, experience in recent years from
many countries has shown very clearly that it is, politically,
very difficult to get m very much below zero. In fact, if government
 investment ko is of some size, it has proved next to
impossible to make even (m - ko) substantially negative (except,
 perhaps, through the camouflage of an inflationary process
 yielding « unintended » higher tax returns). As a practical
assumption in the present context we shall, therefore, impose
the constraint that

4.3) Minimum value of (m - &

Consequently, we find that the maximum value of kp is limited
by the government policies for x, and k, as determined by
(2.5) and (1.6), respectively, and by the lowest value of xp
that can be obtained under the constraint (4.3). This implies
that

(4.4)

na
J, max

.

Jai

From (4.4) and (4.2) it then follows that it may be reason
able to determine A(#) in (4.7) by setting

4.5) Alf) =

y

»—0) [(I—x)(1—y)aK— 8].

We then obtain the following differential equation describing
the development of * stal canital under the full-employment fiscal
policy consider.

4.6)

CC Isinw/-«raavelmo

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