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 coordinating
 body for all investments in the community. (Indeed,
 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 « unfounded
 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. .