568 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28
algebraical re-arrangement, corresponding to a process of solv-
ing a system of linear equations: the production coefficients of
one model turn out to be a linear combination of the produc-
tion coefficients of the other.
This can be shown immediately, if goods are expressed in
physical terms. (A further similar algebraical re-arrangement
would then be needed for the investment goods if they are to
be expressed in terms of physical capacities). Thus if we take
an input-output system, we must state consumption goods
industries and investment goods industries separately. We can
then isolate the inter-industry transactions by opening the
system with respect to the final sector. This means that we
take as given the final demands, common to both LEONTIEF’S
and the present model, and drop from the system the last row,
representing the inputs of the original factor (labour) into each
industry.
We obtain:
(VII)
Tg
Corey
“Cay
tu
U;
U,—1
where the c;;’s stand for the inter-industry technical coefficients,
the Z;s for the productions of intermediate commodities, and
the U;s for the final demands (i,i=1, 2, ..., R- 1). Bv solv-
ing (VI.I), we arrive at
(V1.2,
I Comin
-T
TJ.
U
U,—1 |
10] Pasinetti - pag. 08