SEMAINE D'ETUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC.
587
capita expenditure is less than the income each worker re-
ceives: a situation of under-consumption. In the context of
system (II.3) it implies that Ye, X,<X , namely that total
labour employed is less than total labour available: a situation
of under-employment. Conversely, the fulfilment of (II.5)
implies both full expenditure of total income and full employ-
ment.
Looking at condition (II.5) more analytically, we may no-
ice that it is a sum of products a,4,,, (:=1, ... n- 1), where
each of these products has the property of being composed of
one technical coefficient and of one consumption coefficient
both referring to the same commodity. Therefore, each a,a,,
2xpresses the proportion of full employment national income
which is spent in that sector (sector ¢), or — which is the
same — the proportion of total labour which is employed in
‘hat sector. Evidently, the sum of these proportions must be
equal to one in order to reach full employment. In those cases
in which average per-capita expenditure turns out to be less than
‘he income each worker receives, prices and quantities are de-
‘ermined all the same, but total production turns out to be
:ess than potential production, and there will be unemploy-
ment in the system. The situation is expressed by condition
[I1.5) being under-satisfied, i.e. by the summation of (II.5)
being less than unity. The gap between Ea,;a,, and unity ex-
presses the proportion of labour that remains unemployed.
Let me point out immediately the macro-economic nature
of condition (II.5). It does not depend on the number of sectors
that exist in the economy; it is just one condition referring to
the economic system as a whole. We may express it by simply
saying that there must be a total expenditure equal to potential
national income if full employment is to be achieved.
When put in these terms, condition (II.5) sounds familiar.
[t expresses a conclusion which is very well known in economic
theory, since J.M. KEYNES brought it out explicitly in his
General Theory The novelty here is that this macro-eco-
‘10]| Pasinetti - pag. 17
