BALANCED GROWTH AND TECHNICAL 
PROGRESS IN A LOG-LINEAR MULTI- 
SECTORAL ECONOMY 
MICHIO {MORISHIMA 
Osaka University - Osaka - Japan 
~TRODUCTION 
In this paper we are concerned with an economy where 
each good may serve the capital requirements as well as the 
current production requirements of all the various industries. 
We assume that each industry has a production function of the 
CoBB-DoucLas type (1). We also assume that the constant 
returns to scale prevail in each industry and that the marginal 
productivity of any factor equals the price-ratio between the 
factor and the product. 
As for the consumer’s behaviour we follow Mrs. Joan Ros- 
iNSON and J. voN NEUMANN in assuming that only workers 
consume and only capitalists save. We assume that all workers 
{') Such a system may be called a WALRAS-MOORE system. See HENRY 
L. MooRE, Synthetic Economics (New York, Macmillan, 1929). A similar 
model has recently been examined by RADNER. See R. RADNER, Notes on 
he Theory of Economic Planning, Center of Economic Research, Training 
Seminar Series 2 (Athens) 1963, and Optimal Growth in a Linear-Loga- 
vithmic Economv. unpublished (November 1062). 
jo 
Morishima - pag. 
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