Definition & Reality in the General Theory of Political Economy

by Thomas Cool

Y] = r (y -

Y)

It appears that

is very small. For example, with LE the number of tax payers, and Y / LE average income, we may take exemption as a third of average income, so that

= x / Y = 1 / (3 LE). But the small size does not invalidate the indexation method, since:

dLog[x] = dLog[