SEMAINE D ETUDE SUR LE ROLE DE L ANALYSE ECONOMETRIQUE ETC. 
30, 
proposed by the authorities is accepted by capitalists; so that they 
may make a plan requiring that all capitalists’ income is automat 
ically reinvested. 
It is true that our assumption does not well fit any actual eco- 
nomy unless all industries are nationalized; in fact, in a mixed eco- 
nomy there are private and public sectors. The planning authorities 
will push forward their plan mainly through public sectors, while 
private sectors can act against it. It would, however, be beyond 
‘he present state of our techniques to establish the turnpike theorem 
n a mixed economr 
PASINETT: 
[ have some doubts on Professor MorISHIMA’s paper, which du 
not concern, of course, the mathematics of it (which is admirable) 
out its assumptions and thus its bearing on the type of world in 
which we live. Professor MorisHIMA’S model is intended to be a 
development of that of voN NEUMANN, and in order to explain mv 
doubts, it may be useful to compare the two models. 
Von NEUMANN, as we know, was concerned with a hypothetical 
society in which there is no technical progress and economic growth 
:akes place at constant technical coefficients; relative prices as well 
1s per-capita incomes remain constant as time goes on. In such 
conditions, no assumption is necessary about individual preferences, 
which can be accepted as given, whatever they may be. (It is only 
necessary to assume that people are, by and large and irrespective 
of time, of the same type). Such a scheme thus happens to have 
‘he mathematically interesting property that balanced growth (i.e. 
expansion of production of each commodity according to the income- 
elasticity of total demand for it) is a proportional economic growth. 
I have had the opportunity of arguing myself in the paper I 
nave presented to this Study Week, that the economic expansion 
which von NEUMANN has considered is a very unrealistic type of 
zconomic growth. Yet, I would take voN NEUMANN’S model as a 
very important first analytical sten And I should always look 
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Morishima - pag. 33