SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC.

609

This is a formulation of real interest. It states the series
of sectoral productive capacity conditions in terms of flows
‘and no longer in terms of stocks) by specifying a very definite
relation which must hold between each demand coefficient for
new investments and the corresponding demand coefficient for
consumption goods. It states that, as a condition to endow the
system with the equilibrium productive capacity, each sectoral
aet investment, in physical terms, must be equal to the corcesponding
 sectoral final demand multiplied by the rate of
growth of population. This determines sectoral equilibrium net
investments in the whole economic system:

TI1.7) X, (t)=g a,,X,(t) 1=1, 2, .... (NA — I).

These conditions may, therefore, be called the capital accumulation
 conditions for keeping full employment over time.
[f we like, they may be expressed also in terms of ratios be-‘ween
 quantities evaluated at current prices. After multiplying
both sides of """ * hy P. and dividing by PX, we obtain

(111.8)

. 1H

15,

which mean that, in equilibrium, each sectoral ratio of investnent
 to production, evaluated at current prices, is equal to the
sercentage rate of population growth multiplied by the corresponding
 sectoral capital-output ratio.
When the capital accumulation conditions are kept satisfied,
‘he system — as time goes on — is being constantly endowed
with exactly those stocks of productive capacity which are necessary
 in order to provide full employment for all the workers.
This, however, does not yet necessarily imply full employment
and full utilization of productive capacity. In order that equi-101

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