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2 The Framework of Analysis

This section presents the basic demographic model of benefit flows.[4] The stock-flow relationships are described in subsection 2.1.[5] In subsection 2.2, the use of the model to deal with policy changes is discussed.


  • [4]Stone (1973) discussed a number of applications, in particular the movement of individuals through the education system. He also suggested an expansion of the model to allow for 'dependence on the past', but the approach would produce too many 'states' in the present context.
  • [5]An indication of how the model can be used to examine benefit costs is outlined in Appendix F.
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