T,= 2 at the collective scale. (A11.1a) C P
recalling that c, is pure consumption rate C, /K,.
Rae, Jevons and Boehm Bawerk all got nowhere because they modeled physical capital only. Jevons, in particular, saw the productive cycle as the wage fund reproducing itself as it was used up in consumption per (A11.1). He was close. (A11.1a) models it as total capital reproducing itself as it is used up in pure consumption. My next generation theory, really Petty’s, posits the generation length as the deadline for transmitting all fitness (total capital) from each generation to the
next.
The generation length in R.A. Fisher’s sense is average age difference between both parents and all offspring from first births to last weighted equally. It is a flexible biological norm. It was probably well over 30 years before 1900 or so, when high infant mortality compelled longer breeding to ensure that two would survive to breed again. Contraception, known since Roman times, was then less practiced. It seems to run a little under 30 years today in industrial countries. I model it at 28.5
years. That gives
T, =28.5 years and Cc, = —-=.035 /year . (A11.2)
F
(A9.5), inferred from free growth theory, already gives
I(K,),,optimum=Y optimum=c_, at the collective scale. xa xa p
This shows that the output we actually control, meaning ex ante output, is optimized at just enough to make up losses to pure consumption. Next generation theory
specifies that the loss and make-up period equals the generation length. APPENDIX A: The Argument in Notation 3/7/16 27
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