=
* in the final equation, and then use (28.1).
[90] Conceivably even, the government uses its instruments such as to create some surprise element deliberately. However, a statement like this is a typical result of modeling. Reality is full of surprises, so the need for governments to create some more does not seem realistic. The literature on ‘credibility’ similarly has a high academic content.
[91] Which is a nice spot to again emphasise the limitations of the linear assumption.
[92] In empirical analysis we might approximate demand by next period’s employment, but then we must be aware that this already includes some crowding out effect.
[93] Please be aware of the intellectual risk that I am taking here: I only know (a) the Dutch situation, (b) the OECD (1986) report on indexation practices, (c) that European minimum wages are quite high and that the US has more poverty. The rest is a matter of logic and economics. From this I forecast the foreign situations and these stylized facts: and it will be fun to hear others confirm these.
[94] Chapter 27 uses q for natural public goods, but for lack of symbols we re-employ q here.
[95] See the note above on the Oort Commission: They created this; though many Dutch nowadays think that it has been around ‘forever’.
[96] In terms of Table 7, we now interprete ms and md as the first values for which the densities have a positive value. Note: we need not add that M