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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28
phrases referring to a preference indicator of that particularly
simple form. There is no intent to claim that, even in the
absence of risk or uncertainty, there is some physical or
psychological significance to the comparison of utility diffe-
rences in such a scale.
There still remains a logical gap between the derivation
of the above utility function from the postulates referred to
and its use in the present study: For present purposes a con-
tinuous time concept is more appropriate.
2. PLAN OF THE PRESENT PAPER
We shall freely borrow from PHELPS [1961] and others
mentioned below the assumptions of the main model considered
in Section 4, from RAMSEY [1928] a device for maximizing
utility over an infinite horizon without discounting, together
with methods for applying the device, frorh SRINIVASAN [1962]
and from Uzawa [1963] information about the results of
maximizing a discounted sum of future consumption, and from
INAGAKI [1063] results about the generalization of the present
problem to the case of predictable technological progress (1). If
this particular brew has not been served before, it is not put
together here for any novelty of the combination. Rather, our
eclectic model appears to have in it the minimum collection of
elements needed to serve the two main aims of the present
paper.
The first aim is to illustrate the usefulness of the tools and
concepts of mathematical programming in relation to the
problem of optimal economic growth.
The second aim is to argue against the complete separation
(') Note added in proof: A study by PucacHEv [1963], which has
several similarities with the present study, has been brought to mv attention
by ].M. MONTIAS
"41 Koopmans - pag. 4