simplifies to gift. Transfer in gained by the owner’s total capital, net of the same
internal transfers, is gift received. The math becomes T=¥, Y=¥y,-y¥, &-F =7,+¢, , F=y_ and F=y+C, (A1.5)
at the scale of each individual's total capital as a whole. Here y (gamma) is net gift,
y, isgiftand y_ is gift received. Divide (A1.1) by K, to find
K, F =—14—, (A1.6) K,
oS: K, K,
Define these three terms as productivity or rate of return r, total capital growth rate
g and cash flow rate f. Then (A1.6) can be reexpressed as r=gtf. (A1.6a) (A1.3) combines with (A1.6) to show K. C
T
Y Ay, , at the collective scale. (A1.7) K, K,. K,
Define “pure consumption rate” C, as C, /K,,, and substitute to show
r=gtc,, at the collective scale. (A1.7a) APPENDIX A: The Argument in Notation 3/7/16 3
HOUSE_OVERSIGHT_011129