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

622 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - exactly the same procedure as in section 2 of the previous chapter, the capital accumulation conditions emerse as (IV.3) a, »(t)=pa,, (1), 1=1, 2, .... (n-1), which are similar to the (III.6), the only difference being that now the rate of technical progress has replaced the rate of population growth. Of course in the (IV.3) all coefficients are moving, but they are moving at the same rate of change so that the relation between them remains constant through time. The effective demand condition also emerges as very similar to (111.11): (V4) 1-3 Senda = (e+) 3 5 anid and, where again the rate of technical progress has taken the place of the rate of population growth. The interesting property of this case is that all coefficients of production and all coef- ficients of consumption, although moving in time, are moving in an opposite direction and at exactly the same rate. As a. result, each single binary product of coefficients under the two summations remains constant as time goes on — the mo- vements of the components exactly cancelling each other out. This means that the contribution to national income of each single sector remains constant. As in the previous case, con- dition (IV.4) does not raise any problem through time. Once it is satisfied at time zero, it will remain satisfied for ever, pecause in all sectors productivity and demand are increasing at the same rate. The time paths of all economic magnitudes can be found immediately by substituting (IV.1) and (IV.2) into (II.11), (IT.14) and (III.12)-(I1I.15). As can easily be checked, if the rate of profit remains constant, the results emerge as follows: r) physical production of each commodity increases in time at the rate p; ‘10] Pasinett: - pag. 52

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