1042 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28
Acceleration Relationships:
21
Y(t) = L®
b, is the capital coefficient (capital-output ratio) describing
the amount of capital required per additional unit of annual
GNP.
Growth Rate equation, obtained from (1) and (2):
St
——— oO
yo) =
A
V.(£) —
Ÿ,
Exponential Growth Function, obtained by solving (3):
4) Y,(®) = Y, (0) eMt , à, — 11
1x =
A.
where Y,(0) represents the level of the GNP in the base
year 0 and À, its growth rate, which remains constant as
long as :, and b, are fixed.
The amount transferred from the Developed to the Under-
developed Areas is assumed to constitute a fixed fraction, h,
of the GNP of the capital-exporting countries. Thus, the fol-
lowing Transfer relationship, which is derived from equa-
tions (4) above, implies that H(¢), the amount transferred, will
grow exponentially at the same rate as the Developed Areas’
GNP:
Transfer relationship:
1
H(#)=RY,({) = RY, (0)e
‘13] Leontief - pag. 4