Study week on the econometric approach to development planning

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Monograph

Identifikator:: 1824422792

URN:: urn:nbn:de:zbw-retromon-217476

Document type:: Monograph

Title:: Study week on the econometric approach to development planning

Place of publication:: Amsterdam [u.a.]

Publisher:: North-Holland Publ. Co. [u.a.]

Year of publication:: 1965

Scope:: XLVII, 1259 S.; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Croissance optimales dans un modele macroeconomique / E. Malinvaud, Institut National de la Statistique et des Etudes Economiques Paris - France

Collection:: Economics Books

304 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 traints. Condition 1 is specific to the consideration of unlimited programs. We shall have occasions to see in the following examples that it is not vacuous. We may also observe that the equations «,=o0, §,=0 imply together with the equilibrium condition at time # a set of dif- ference equations which may usually be solved recursively for all C,, K,, N, starting from any given allocation of S, between Co and K,. Thus, the regular programs generate a one pa- rameter family of programs, the parameter being C, (or equi- valently Ko, S, being given). Typically, one and only one program of this family will meet condition 1 and therefore be optimal. A possible computational procedure would be first to determine the regular program corresponding to any fixed initial allocation, and then to find by trials and errors the initial allocation that leads to fulfilment of condition 1. Before turning to specific examples, we may look at the economic interpretations of equations (22), stating that the «,’s and §3,’s are all zero, and of condition 1. The first equation (22) may be written as: 34) I+fæ = (1+e) (1+T,) (I+U,) f= being the marginal productivity of capital, or the equili- brium rate of interest, e the social rate of interest used for the discount factor of the utility function, =, the rate of increase of the population, and u, the rate of decrease of the marginal ut'ity of consumption. This equation exhibits in a suggestive way the three components which explain the equilibrium rate of interest. It is similar to relations recently put forwards by Sir Roy HARROD and Professor RAGNAR FRISCH. Condition 1 implies that the equilibrium rate of interest be larger than the rate of increase in the stock of good S,, and the- refore that the present value of S, decreases to zero with £. 5] Malnvaud - pag.

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