SEMAINE D'ÉTUDE SUR LE ROLE DE L ANALYSE ECONOMETRIOUE ETC.
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of the ethical or political choice of an objective function from
the investigation of the set of technologically feasible paths.
Our main conclusion will be that such a separation is not work-
able. Ignoring realities in adopting « principles » may lead
one to search for a nonexistent optimum, or to adopt an
« optimum » that is open to unanticipated objections.
In connection with the first aim, Section 3 recalls a few
results of the theory of linear and convex programming in a
Anite number of variables, that bear on the problem of opti-
mum growth. The reading of this section is believed to be
helpful rather than essential for what follows. Indeed, in most
of its formulations, the problem of optimal growth is a special
problem in mathematical programming. The main new ele-
ment arises from the open-endedness of the future. If one
adopts a finite time horizon, the choice of the terminal capital
stock is as much a part of the problem to be solved as the
choice of the path. Terminal capital, after all, represents the
collection of paths beyond the horizon that it makes possible.
An infinite horizon is therefore perhaps a more natural speci-
fication m many formulations of the problem of optimal growth.
The mathematical complications so created are the price for
the greater explicitness of long run considerations thus made
possible.
Sections 4-6 analyze a model with a single producible good
serving both as capital in the form of a stock, and as a con-
sumption good in the form of a flow. It is produced under a
constant technologv bv a labor force growing exogenously at
a given exponential rate. Proofs for many of the propositions
labeled (A), (B), ... in Section 4 are given under the same
label in an Appendix (1).
In Section 7 the findings of the logical experiments of Sec-
tions 5. 6 are examined. The main conclusion is that some
(") Approximate equivalents of propositions (E), (F), (H), (I), (J) were
obtained independently by Davip Cass [1963]. The connection between the
limiting case of a zero discount rate and the « golden rule of acenmnlation »
{see Section 5) is also observed and discussed in Cass’s paper
Konbmans - pag.