Full text: Study week on the econometric approach to development planning

602 
PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 2& 
in a certain period of time evidently has different consequences 
on the stocks of capital goods in the ensuing period. But for the 
time being, and as far as a short-run analysis is concerned, the 
composition of demand does not matter. To fulfil condition 
(I1.10), that is to reach full employment, the only requirement 
that is needed is that the sum of all types of demand be 
such as to imply a total expenditure equal to total potential 
income. 
What must be added, however, is that the fulfilment of 
(II.10) is no longer enough, because it only refers to the flow 
aspect of the system, and thereby implies full employment only 
potentially. Some other conditions must be fulfilled with regard 
to the stocks. First of all, there must be enough productive 
capacity in the system to make it possible to produce what is 
required bv potential demand. i.e. 
11.18) K;>X. , 1=1,2, .... (m-1). 
Yet this could not be defined a satisfactory situation, if the 
capacities were far beyond what is required by a full employ- 
ment demand. We have to impose also the conditions of full 
capacity utilization, namelv: 
(11.10) K<X., 1=1, 2, …. (KR -I). 
It follows that, for the (II.18) and (II.19) to be simultaneously 
satisfied, all the K;’s must be equal to the X;s. 
To sum up, two types of conditions are now necessary for 
the systems (II.o) and (II.13) to hold, namely 
(II.20) 
I 
Sa, ay + San. Ann + > TF Ank, a, = 1 
5 
aa 
(11.21) 
K. — D 
wv 
—y Ay sees (mn — I, 
10] Pasinetti - pag. 32
	        
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