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:: The role of capital in economic development / Maurice Allais, Ecole Nationale Supérieure de Mines Paris - France

Collection:: Economics Books

SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 891 pd Trading GS TETE Tap WATT ORL Rn Tate ATT = Since the French and American economies are characterized by values of y of the same order of magnitude, it may be concluded that the capitalistic structures of the two countries are similar (!); they can therefore not play any role in account- ing for the average difference in productivity observed. This average difference of productivity, of the order of 2.3 to I, should be attributed to other causes (3). It follows then that with the same capital-output ratio y=C/R, the amount of equipment per worker is approximately double. In conclusion, the fact that the ratio between the physical volume of industrial equipment per worker is 2.4 to I whereas the value of capital relative to the national income is little dif- ferent, should not be considered as a cause in itself, but as an effect of greater American efficiency. The fact that in physical quantity American equipment per head is at present 2.4 times as high as in France corresponds simply to the fact that, for reasons other than the capitalistic structure, U.S.A. producti- vity is about 2.3 times as high. It follows from this that for the same value of capital per head measured in terms of hours of work, the amount of equipment is about 2.3 times as high. From this point of view, the concordance of the order of magni- tude of the two values 2.3 and 2.4, which were found as the ratios of productivity and of the volume of output respectively, is particularly striking. Thus, if an explanation of greater American efficiency is sought using the greater value of equipment per worker meas- ared in physical units rather then by: considering the capital- output ratio as a means of estimating the influence of accum- ulated capital, this is to treat as a cause a phenomenon which in realit ‘s only an effect =~ at (') Since they are characterised by the same function ¢() and © (0) least as a first approximation (§ 111). (?) ALLAIS (1960 B), Part I. (3) ALLAIS (1048) and (1960 B), pp. 28-32 -1 | Allais - pag. 195

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