In When it all began by Dhaene and Barten (1989), the authors discuss in detail what they claim was the first ever macroeconometric model, Tinbergen's 1936 model of the Netherlands economy.

Some of their summaries of Tinbergen's variables are a bit vague though.

What, for example, is $E$, described as "All other income, when paid out"?

All other income, when paid out


1 Answer 1


Very obscure indeed. If you see his paper in English (published in 1959), you can see the following (page 43):

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By checking other variables, you can confirm that the variable letters are equivalent in this and your reference. Then, $E$ stands for "all non-wage income, taken at the moment received, instead of take when earned".

This is a standard differentiation between the time an income has been accrued ($Z$) and when it has actually been received ($E$).

You can see more about these definitions later on in the document. In page 49, you find an explanation on how these are calculated (19 is $Z$, 20 is $E$; see table in page 47-48):

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It seems the author is assuming that income is received one further year after is is accrued. However, the text seem to me rather obscure. He mentions a "pamphlet regarding this working method which will be published later." (p.42). You might want to trace that one down.


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