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

676 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 tables can be compared (comparative statics analysis), but they cannot be analytically linked to one another — no theory of any generality can be provided for passing from the one to the other (*). The continuity in time is kept, on the other aand, at the vertically integrated level, where the relations which can be set up possess — to use FriscH-HAAVELMO’s terminology (°) — a higher degree of autonomy. This means that the permanence of these relations in time is independent of technical change. In this context, the vertically integrated technical coefficients acquire a meaning of their own, inde- pendent of the origin of the single parts which compose them. The movements of these coefficients through time, and the various consequences thereof, can be investigated and follow- ed as such. When more information is needed about the () A note may be added here about how this applies to the work which is being done at present at the Department of Applied Economics of Cam- bridge, where Professor Stone, Mr. BrowN and their colleagues are working on a model of economic growth for the U.K. from 1960 to 1970. They seem to be trying to make an estimate of the 1970 input-output table by applying uniform coefficients of reduction to the rows of the table for 1960. (See: RICHARD STONE and ALAN BROWN, 4 Computable Model of Economic Growth, D.A.E. Cambridge 1962, especially pp. 70-71). The procedure, as such, hardly has any theoretical justification if technical progress follows the pattern which has been described in the text. Yet, since the period considered is not too long and since the table adopted is rather aggregate (of the order of 30 industries), which means that the industries considered are not very far from being vertically integrated sectors, the results obtained thereby may turn out to be not too unsatisfactory after all, One should realize, however, that whatever degree of satisfaction there may be in the results, it cannot be attributed the procedure, which is unacceptable in principle. It is to be attributed to (and will be greater, the greater the degree of) shortness of the period considered, and aggregation. i.e. vertical integration, of the industries considered. (°) TryGgve HaaveLmo, The Probability Approach in Econometrics, Suppl. to « Econometrica », July 1944. The process of passing from inter-industry to vertically integrated relations for the purpose of dynamic analysis seems to be a typical example of what HAAVELMO describes as a way of passing to more fundamental and autonomous relations. « In scientific research, our search for explanations consists of digging down to more fundamental relations than those that appear before us when we merely stand and look. Each of these fundamental relations we conceive of as invariant with respect to a much wider class of variations than those particular ones that are dis- played before us in the natural course of events » (ibid.. p. 28) "107 Pasinetti - pag. 106

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