1058 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 25 
I believe this point is absolutely independent of the model given 
by my paper, but it is in the framework of this model that my view 
can be put most clearly. In the model, the conclusion is reached that 
the capital-output ratio must be practically constant. Nevertheless, 
the conclusion is reached in the same model that there is a maximum 
value for real national income, whatever the level of real capital. 
Mav I recall that in my model. in the exponential case. 
C9 (relation 251-6) 
R I1+0 7 
where y is the capital output ratio, C the nominal value of capital, 
R the nominal value of the national income, à the rate of interest 
and 0, a constant whose order of magnitude is 4. For small values 
of 1, vy is practically a constant. 
But we also have in the exponential case 
K. 
& 
(relation 251-15) 
where R is the real value of the national income, and k the coeffi- 
cient of homogeneity of the production function. Rg, is the maxi- 
mum value of R for T=0, 
R has a maximum whatever the value of C. Nevertheless y 
varies little over the usual range of variation of i. 
Here, therefore, is at least one system of consistent hypotheses 
and mathematical deductions in which there are at the same time 
two valid propositions. The first is that when the rate of interest 
is small, the capital output ratio is practically constant. 
131 Leontief - pag. 20