SEMAINE D'ÉTUDE SUR LE ROLE DE L ANALYSE ECONOMETRIQUE ETC. 
305 
In section 4, I present an application of the above analysis 
to an aggregate version of the model recently built bv Roy 
RADNER. 
Population and labor input increase at a constant rate. 
The production function is such that S, appears as a CoBs- 
DoucLas function of N, and K, with neutral technical progress 
expanding at a constant rate. The period utility function is 
proportional to the logarithm of c,. 
In this model, the recurrence equations (22) can be solved 
explicitly to give equation (43). The regular programs are 
thus determined. For instance, the diagram here shows the 
evolution of K, for three programs satisfying equation (43) 
but starting from different initial allocations, the consumption 
C, Increasing when we pass from program r to programs ? 
and - 
Programs 1 and 2 are feasible and therefore regular. 
Program 3 is not feasible since K, becomes negative after 
some time. Program 2 is definitely prefered to program 1 be- 
17 
Malinvaud - pag. 5