652
PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA -
The whole picture becomes radically different in the pre-
sent model, where the fulfilment of the equilibrium condi-
tions at time zero is no longer the end but just the beginning
of the whole story. These conditions cannot remain the same
as time goes on; because technical progress — whether uniform
over the whole economy or not — causes each single component
of the summations in (V.r1) to change. This means that the
way in which each one of conditions (V.8) and (V.11) are ful-
filled must be continually different as time goes on. The size of
the various sectors that may satisfy those conditions in a given
period of time is necessarily different from the size of the same
sectors which ensured their fulfilment in the previous period,
and again is necessarily different from the size of the same sec-
‘ors which can ensure their fulfilment in the following period.
But the discussion of the previous chapter now allows us
to go far beyond these general remarks. By hypothesis, almost
all technical coefficients are decreasing in time. This means
that, unless the demand coefficients increase in the same pro-
portion, condition (V.r1) is bound to become under-satisfied
as time goes on. But we know already that no demand coef-
ficient can increase indefinitely, because eventually all demand
coefficients reach saturation level. Therefore we must conclude
that condition (V.11), as it stands, inevitably manifests a ten-
dency to become under-satisfied, i.e. to generate unemploy-
ment, as time goes on.
Fortunately there are two factors, operating in the long
run, which come to counterbalance the above mentioned ten-
dency. These two factors must now be introduced into the
model. One of them is the same one which causes the whole
trouble: technical progress. So far in this chapter technical
progress has been considered in the form of increases of pro-
ductivity. But it has been pointed out earlier that technical
progress also takes the form of introducing new goods. Our
model must therefore be completed now by opening it to the
possibility of the introduction of new sectors. This can be
[10] Pasinetti - pag. 82
