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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

FIGURE 3-c

when 7° exceeds r. (Similarly, a new technological method
 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