552 
PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
FIGURE 3-c 
when 7° exceeds r. (Similarly, a new technological meth- 
od of the capital-saving type is not adopted when 7° falls 
short of 7). When #° belongs to the perverse part of the curve 
pe’, however, we obtain the following result: A technological 
improvement of the labour-saving type yields an increase in y 
but a decrease in 7 if <7, and vice versa. Thus, either y 
or 7 increases, so that the biased technological change may be 
adopted, irrespective of the relation of #° to 7. 
The following argument is independent of the location of #° 
and its relation to ». Let us normalize the voN NEUMANN output 
configuration x° so as to make the i-th component of x°P° (i.e. 
x°vP) equal 1. It follows from (39) that before the technical 
change we have 
—) 
Ï 
” 
> L(a;, + D, 
= =7) 
n 
> Les — aj; + b;; + Ci 
3=7 
Li-1I, 141, ..., 0), 
‘ 
19] Morishima - pag. 24