SEMAINE D’ ETUDE SUR LE ROLE DE L ANALYSE ECONOMETRIQUE ETc. 1043

[UNDERDEVELOPED AREAS

The productive investment in the Underdeveloped Areas is
being supported from two sources: The saved fraction, 1,, of
their own Gross National Product, ¥,(¢), and the capital-imports,
 H(?):
Investment Function:

6)

L({)=i,Y,({) + H()=CAN


* A,
La

T

1 [we a

Acceleration Relationship:

=

Y, (HN

b, is the capital coefficient describing the amc... «. capiia
required per additional unit of annual GN.

Growth rate equation derived from ‘) and (7):

‘)

‘a)

Y.(5)

"+

Growth Function, obtained
tion (8):

r
Yh)=Y

ye

solving

Ir

‘he differential ecua

To verify the last equation one can substitute it and its
derivative in (0); the expression on the left hand side will
identically equal zero

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1.3] Leontief - pag.

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