1042 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

Acceleration Relationships:

21

Y(t) = L®

b, is the capital coefficient (capital-output ratio) describing
the amount of capital required per additional unit of annual
GNP.
Growth Rate equation, obtained from (1) and (2):

St

——— oO
yo) =
A
V.(£) —
Ÿ,

Exponential Growth Function, obtained by solving (3):

4) Y,(®) = Y, (0) eMt , à, — 11
1x =
A.

where Y,(0) represents the level of the GNP in the base
year 0 and À, its growth rate, which remains constant as
long as :, and b, are fixed.

The amount transferred from the Developed to the Underdeveloped
 Areas is assumed to constitute a fixed fraction, h,
of the GNP of the capital-exporting countries. Thus, the following
 Transfer relationship, which is derived from equations
 (4) above, implies that H(¢), the amount transferred, will
grow exponentially at the same rate as the Developed Areas’
GNP:
Transfer relationship:

1

H(#)=RY,({) = RY, (0)e

‘13] Leontief - pag. 4