SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC.
645
To begin with, all technical coefficients, whether referring
io the production of consumption goods or of investment goods,
and all demand coefficients of consumption goods can never
be negative. In mathematical terms:
2...
V.5)
A
which have a quite straightforward meaning. For, a negative
amount of labour or a negative amount of consumption makes
20 economic sense.
On the other hand, the coefficients of demand for net invest-
ment can become negative, although only to a certain extent,
ie. up to that point at which gross investment is still non-
negative. The restriction applies with absolute certainty to
fotal gross investment. It need not necessarily apply to gross
investment in each single sector, if capital is flexible enough
to allow some transfers of capital from one sector to another
when needed. In other words, taking first the most restrictive
of all cases,
V.6)
T a, (?) + Ax (1) =z 0,
cee (NH —
1
Should a situation arise in which the equilibrium conditions
(which will be discussed in a moment) would require some of
nequalities (V.6) to be reversed, then some more information
about existing capital stocks is needed in order to tell what will
happen. If, in those sectors where inequalities (V.6) are re-
quired to be reversed, capital is very specialized and cannot
oe transferred anywhere else, then idle capacity (i.e. a discon-
linuity in the model) will appear. If, on the other hand
10] Pasinetti - pag. 75