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 RosiNSON
 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-Logavithmic
 Economv. unpublished (November 1062).

jo

Morishima - pag.

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