SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 5:

x;;, (=I, ..., n) be the volume of output of good 7 (by industry
 7) in period ¢, and x, (i=1, ..., n; j=0, I, ..., n) the
volume of current input of good j into industry ¢ in period £,
where the o-th good stands for the sole primary factor of
production, ‘labour’. Finally, let s;, (i, j=1, ..., n) be the
volume of capital input of good j into industry ? in period ?.
It is assumed that the production function of each industry
is of the CoBB-DouGLaS type, i.e.

1)

MT a n t
A …
x, =F, I, HI Set +
;

i—=1, .., 7)

where F;, a;, and b;; are all constant and non-negative. It is
also assumed that the constant returns to scale prevail, so that

2)

ri

3)

In each industry, unit cost is to be minimized; furthermore,
it equals the price of output when competitive equilibrium prevails.
 It is well-known that the marginal conditions may be
put in the form:

-…., M

y| Morishima - pag. 3