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:: A new theoretical approach to the problems of economic growth / Luigi L. Pasinetti, King's College - Cambridge - Great Britain

Collection:: Economics Books

SEMAINE D'ÉTUDE SUR LE ROLE DE L'ANALYSE ECONOMETRIQUE ETC. 577 of the scarcity type. As we know, the typical marginalistic scheme of general equilibrium is a model of what has been called a pure exchange economy. (3). The model presupposes the existence of given natural resources in fixed quantities, and of a given number of individuals (owning the resources) with well-defined utility preferences. The economic problem these ‘ndividuals have is one of rational choice. They have to find ‘hose prices (equilibrium prices) which bring about, through exchange, an optimum allocation of the given resources rela- lively to their original ownership-distribution. The problem can be represented analytically by a mathematical function which is being maximized, subject to certain constraints fixed oy nature. Of course, marginalist economists have then gone on to investigating all other economic problems as well (production included). The relevant point is, however, that they have done so by an extension of the theory they had originally developed for scarce commodities. Professor SAMUELSON, at the very beginning of what is one of the most rigorous versions of marginal economic analysis, claims exactly this. He claims to have been able to isolate a simple theory which can be applied to every economic investigation: a mathematical func- lion to be maximized under given constraints (%). This has been a crucial step. For, in this way, every single corner of economic theory has come to be permeated by the character of scarce goods and by the rational problem of making the best use we can of them, at the expense of the character of produced goods and of the learning process of human beings. It has meant that modern economists have (°) See, for example: J.L. Mosak, General Equilibrium Theory in Inter- rational Trade, Bloomington, Indiana, 1944. The same scheme can be found n the very first chapters of all standard treatises of marginal economics. See, for example: V. Pareto, Cours d’économie politique. Lausanne, 1895; J.R. Hicks, Value and Capital, Oxford, 1939; P.A. SaMUELsoN, Foundations of Economic Analysis, Cambridge Mass., 1947). ) P.A. SAMUELSON, op. cit., pp. 1 and ff iO | Pasinetti - pag. /

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