APPENDIX A: The Argument in Notation
Output and Cash Flow
My focus will be on absolute rather than per capita values. The usual custom gives capital letters for the former and lower-case ones for the latter. I will prefer the upper case for stocks and flows, and the lower one for rates. That need not hold true
for Greek letters.
The total return truism can be notated
Y=K,+F, (A1.1)
where Y is output, K,, is total capital and F is cash flow. Also
F=t+C, and t=T,-T_, (A1.2)
where T (tau) is net transfer, tT, is transfer out, t_ is transfer in and C, is pure
consumption (exhaust in taste satisfaction). Cash flow is the net of positive less
negative components. I define them by
F=t,+C, F=t and F=F -F. (A1.2a)
+
At the collective scale, where transfers cancel internally, these equations combine
for
Y=K,+C, and F=F=C,. (A1.3)
p
Math reminds us continually that “equals” does not necessarily mean “is”. (A1.1) and
(A1.3), for example, do not mean that output is growth plus cash flow or growth plus
APPENDIX A: The Argument in Notation 3/7/16 1
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