SEMAINE D'ÉTUDE SUR LE ROLE DE L'ANALYSE ECONOMETRIQUE ETC. 601 
one machine of the same type. If it were not so (i.e. if the 
processes to produce capital goods required more as inputs 
than what they give as outputs) production would be imposs- 
ible. The reader will also notice that the theory of value implied 
by (II.16) is analogous to the theory implied by (II.14). AI 
components of prices are expressed in terms of labour and 
labour equivalents. 
These similarities will be very useful in the subsequent 
analysis, where it does not make any difference whether the 
(II.11), (II.14) or the (Il.x5), (II.16) are used, except in 
some particular cases. Normally, therefore, we shall be able, 
without lack of generality, to carry on our analysis in terms 
of the (II.11), (II.14), which are much simpler. For analogous 
reasons of simplicity, the procedure will normally be followed 
of using a single rate of profit (x) and the same replacement 
coefficient ( =) for all the sectors. 
3. The conditions for equilibrium 
We have not yet commented on the new form taken by 
the full employment condition. Expression (II.10) represents, 
in mathematical terms, the condition that must be satisfied in 
order that the linear and homogeneous systems (II.g) and 
II.13) may have non-trivial solutions. It clearly takes the 
place of (II.5) in the previous case and has exactly the same 
economic meaning: a necessary condition for reaching full 
employment. Unlike (II.5), expression (II.10) now makes a 
distinction among three different types of demand: demand 
for consumption goods, demand for new investments and de- 
mand for replacing worn-out capital goods. However, the im- 
portance of this distinction is only to be seen in the dynamic 
analysis which will follow — a different composition of demand 
10] Pasinetti - pag. 3