SEMAINE D'ÉTUDE SUR LE ROLE DE L'ANALYSE ECONOMETRIQUE ETC. 
58. 
In order to keep the analysis in as simple terms as possible 
only final commodities will be considered. No intermediate 
stage will be explicity represented. After all, it is always 
possible, when needed, to re-introduce intermediate stages and 
intermediate commodities by a simple linear transformation, 
as will be shown and discussed in detail later on, in chapter VI. 
For the time being, therefore, all production processes will be 
considered as vertically integrated, in the sense that all their 
inputs are exclusively represented by services from two types 
of factors of production: labour and capital. 
To begin with, however, it will be useful, as a purely expo- 
sitory device, to take a very simple step and to develop first 
a theoretical model (sections 2 and 3) where production is 
exclusively carried out by labour. Capital, as a factor comple- 
mentary to labour, will then be introduced from section 4 on. 
2. The flows of commodities and of labour services, in physical 
terms and at current prices. 
Even in a system as simple as the one now described, there 
is a whole series of flows — or rather two different series of 
flows — which take place inside the period considered: flows 
of labour services from the individuals as labourers to the 
production processes, and flows of commodities from the pro- 
duction processes to the individuals as consumers. Suppose 
that the number of final commodities produced is (z - 1). Then, 
since we consider no intermediate stage, there is a production 
process, behind each final commodity, which goes right back 
to the original factors of production: labour in our case. We 
have, therefore, (n - I) production processes or sectors, each 
>f which consists of one labour input and of one product output. 
‘10] Pasinetti - pag. 11