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’ETUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 659 Here we have new problems arising because the E;’s and E,; 's although representing flow-variables (services from labour in the unit of time) come from, and are inseparably linked to, a stock-variable (the labour force) which may not be perfectly mobile. As appears from (V.16), if population is constant (g=0) employment in each sector ¢ increases or decreases through time according to whether r;>p; or r;<p;. This means that, on the average, half of the sectors are offering jobs and half of the sectors are dismissing workers, as time goes on. Clearly, this may be a very serious state of affairs — especially In a very progressive system, i.e. in a system with very high 2s — if labour is highly specialized and is not susceptible of being transferred from one sector to another except at the ex pense of heavy losses in productivity. Fortunately, the natural movements of population come in here to help in the right direction and in two senses. First of all, the natural process of people ageing permits a redistribution sf employment among sectors by addressing young workers towards expanding sectors and by not replacing retired people in the contracting sectors. This may be a slow process, but it is one which is going on even when population is stationary. Secondly, when population is growing, its rate of increase is a net positive addition to the rate of change of demand (and herefore of employment) in all sectors. It follows that, in absolute terms, only those sectors will actually lose employment where the rate of increase in productivity is so high and the rate of increase in per-capita demand so low that the difference between the two is not only negative, but negative to such an extent as to make the sum (g+7;-g;) less than zero, or rather the sum (g+7;-g;+¢) less than zero, where @ stands for the rate of people’s retirement from working activities (6) (®) At this point restrictions (V.6), discussed in section 2, may be re- written with reference both to the stocks of capital and to employment of abour in each single sector. in the following wavy: V ‘continued on following page) ‘10) Pasinetli - pag. 89

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