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

674 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 ment and development. To an external observer, looking for the « best-known technique », the methods of production may sometimes look like being introduced at a certain point and then remaining stable for long periods of time; but when a reckoning of the inputs and outputs of an industry is begun, the most widely warying shifts are found from one moment to the next. Even at a given point of time, there are many direc- tions from which the inputs may come, and to which the outputs may go. These are well-known problems which have always caused difficulties to all builders of input-output tables and which some- times cast serious doubts on the meaning to be attributed to the coefficients of very disaggregated input-output systems. Of course these doubts diminish the more the industries are aggre- gated, but in this direction the meaning of an input-output framework diminishes too. So that input-output experts have always tried to find — so to speak — a sort of minimax point at which to stop the process of aggregation-disaggregation, in such a way as to keep the usefulness of an input-output table without making its coefficients too unstable. What has not been sufficiently realized is that the property of eliminating these shortcomings belongs to the completely aggregated quantities not because they are aggregated but be- cause — by being completely aggregated — they are necessarily vertically integrated. The property extends to all vertically integrated magnitudes as well. By resolving all products only into the same constituent original elements — labour and capi- tal — the vertically integrated approach leads to setting up rela- tions whose permanence over time does not depend on the dif- ferent technical possibilities. For example, two equivalent me- thods which, at a given point of time, entail the same cost for the same output, are represented in an inter-relation system by two different technical functions. But in a vertically integrated system, they are expressed by exactly the same function. Their being equivalent means that they require the same amount of 10] Pasinetti - pag. 104

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