PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
THE TRANSIENT MODEL 
I. INTRODUCTION 
This model is still at the preparatory stage. The variables 
are the same as in the steady-state model. The relationships, 
already described in [40], are outlined below. The estimation 
problems are similar to those in the steady-state model. The 
computations are carried out by dynamic programming. We 
are assembling the material for a trial run with a four industry 
model and have written a programme in which the calculations 
proceed year by year. In this way the full model is kept within 
‘he capacity of the computer. 
Since we have not yet made any calculations with this mo- 
del, I shall describe here only the, relationships we propose to 
use, limiting myself to the case of a closed economy with 
constant parameters. In [40] it is shown that these simplifica- 
tions can be dispensed with. 
2. THE RELATIONSHIPS 
The relationships of the model are set out below. Unless 
otherwise stated, the notation follows that developed in the 
preceding chapter. 
First, in the base year at the outset of the transitional pe- 
riod, the vector, s, of the economy’s stock of capital goods is 
equal to a given value s say. That is, 
V. 1 
‘1] Stone - pag. 76