Full text: Study week on the econometric approach to development planning

958 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
These results are plotted in charts V and VI. 
We see that if we consider only the values of # below 10, 
‘he only values which it is realistic to consider, then, although 
the auxiliary parameter T has a wide range of variation when 
w and » change, the values of the parameter ©, (which are of 
economic significance since ®, is the length of the amortisation 
perlod for à -p=0) varv but little. 
Here, T tends to a limit. Consequently ©, increases indefinitely and 
ve have 
I) 
Ye (i—p)— ow] on 
8 i — Yo en) (7—p) 
b) yoli—p)<w <1. 
Here, T tends to zero, and 
2) 
Now in this case. 
3) 
A wvnwnT. 
nt 2 
0 — Ye (2 - 
LC 
:0 that 
LN 
4j 
0 
Opp Tet 
tn) 
In this case it is clear that according to the value taken by w, the corr- 
-sponding value of ©, can take any valne greater than ve 
For ev=1 we have 
5) 
0 — 
PL = ye (i — g)] 
For small (i—¢) this limit differs little from yc. 
c) w = yc (i—p). 
In this case we have 
 — C—C 
6) 
p hT(i-e) 
e TG" 
Ye (g— 2) 
LIT 
and since T tends to zero 
~ 
4; 
=) 
UT 
so that ©. increases indefinitely. 
11] Allais - pag. 262
	        
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