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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
CHAPTER 1 (*) 
INTRODUCTION 
+. The historical background of economic analysis 
I shall begin with a few historical remarks which might 
sound at first rather general and far-fetched but which will 
soon turn out to have a justification. 
If we consider the historical context in which economic 
analysis has come into being, we may say that this context is 
represented by the modern world; namely by the stage of our 
history which is known as the age of experiment and science, 
because of the dominating idea that man, by using his own 
critical intellect, by observing nature and experimenting, can 
learn in a systematic way and can pass on his improved know- 
ledge to the following generations. 
In economic terms, the direct consequence has been a pro- 
cess of unprecedented increase of material wealth. The process 
may be distinguished, for analytical purposes, into two rele- 
vant phases, which we may call the phase of trade and the 
phase of industry. There is no clear-cut distinction between 
the two, as they have a common origin and are intermingled, 
but they appear nevertheless with very definite characteristics 
on the historical scene. 
(*) The present work is a summarized version of a Ph. D. dissertation 
submitted by the author at the University of Cambridge in September 
1962. Chapters II to VI have appeared already, as a publication for limited 
circulation, under the title A Multi-sector Model of Economic Growth, 
King’s College, Cambridge, July 1963. Acknoweledgements for criticism and 
Comments are gratefully due to: R.M. Goodwin, N. Kaldor, J. Robinson, 
R.F. Kahn, J.S. Duesenberry, D.G. Champernowne, [.M.D. Little. Respon- 
sibility, of course, is entirelv mine 
10] Pasinetti - pag. 
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