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

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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. 603 We may notice that (II.20), like (II.5), is a macro-economic condition: the whole national income must be spent, if full employment is to be reached. On the other hand, (II.21) re- presents a series of sectoral conditions: there is one condition for each sector. Each sector : must be endowed with that stock of productive capacity which is necessary to produce the amount of commodity ¢ which is demanded. At this point, one may wonder what would happen if (II.20)- ‘IT.21) were not satisfied. It clearly depends on how the non- fulfilment comes about. A few interesting cases may perhaps be usefully considered. Inequalities of type (I1.18) plus the left hand side of (IT.20) being lower than its right hand side mean idle capacity and less than full empoyment: a situation which we may call one of Keynesian under-employment (7). On the other hand, inequalities of type (II.1g) again plus the left- hand side of (II.20) lower than its right hand side correspond ‘0 a situation in which the capital structure is smaller than the one which would make full employment possible: a situation which may be called one of Marxian under-employment. The ‘wo opposite cases as to condition (IT.20) represent situations of inflation of different types. due respectively to lack of labour and to lack of capital. A further question that may arise at this point is the follow- ng: if any of these cases, or if any other situation takes place, in which (IT.20) and (II.21) are not satisfied. how is the svstem (7) Of course, Keynes had a behavioural theory about this situation, vith reference to a capitalist economic svstem. In terms of the present nodel. KevyNEs’ theorv was that, for psychological reasons. a. a. < i namely that total demand for consumer goods on the whole tends to be smaller than full employment income. Of course demand for investment goods might be such a proportion of total income as to make up for the difference to unity in the inequality stated above. But KEevNEs pointed out that there is no reason to necessarily expect this, because the two types bf demand depend on different factors. As is well known, he thought that in fact the most likely situation to arise is one in which there is lack nf ~ffective demand and excess of productive capacity. ‘Io] Pasinetti - pag. +3

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