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

638 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - FN namic problems, some difficulties have began to arise. For, some data — i.e., factors to be accepted as given from outside economic analysis — are in fact much more variable in time than some of the economic magnitudes taken as variables. In such circumstances, the traditional association has made the choice between variables and constants slowly undergo a serious distortion. Some magnitudes have been kept as variables al- though their variability is not important, and other magnitudes, whose variability is an essential feature of the long-run growth pattern, have been left out of the analysis altogether. It is precisely to avoid this distortion that the theoretical framework developed in the present work has been laid down, straight from the beginning, with reference to the requirements of a long-run dynamic analysis. The criterion for the choice of the hypotheses is a consequence of this approach. I have considered as typical variables those quantities which — inde- pendently of whether they are to be explained or not — un- dergo changes of an irreversible character as time goes on, by incessantly moving on in the same direction. Although the changes might be quite negligible within a single short period of time, each period marks for these quantities a step forward, in a slow but cumulative movement. On the other hand, I have assumed as constants those quantities which, in the long run, do not present any tendency (or for which there is no reason to expect any tendency) to move in any direction. These quantities, of course, may change quite a lot from one period to another, but the point is that their changes are temporary and reversible. Even if they do go for some time in a particular direction, they cannot go on indefinitely, and they are bound to come back to where they started. The difference between these two types of quantities can be immediately perceived if we consider a long period of time. Compare, for example, the American economy in 1860 and in 1960. It is quite possible and easy to claim that, within this period. magnitudes like the average time-life of the equip- "10] Pasinetti - pag. 68

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