Full text: Study week on the econometric approach to development planning

504 
PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 7 
pital (profits). In each sector, the value of total production must 
be equal to the amount of wages due the labourers plus the 
amount of profits due the owners of the capital which is used in 
the production processes (in terms of productive capacity: 
X1> X3, > X,-1) By calling W the wage rate and = the rate 
of profit, system (II.4) becomes: 
(11.12) 
Un, 
{> 
ZX, p, 
I~ 
a, 
Ap 1n—1%,n—1 
Ank 
a, 
“egy 
Xin as, ete on Ay_ 1,0 Ayn Ax n ee LL -1 
P,._ 
P,. 
Vv 
j en 
19 GN P, 
Xn) 
i) 
2 
x 
Here we are faced with a complication. Comparing (II.12) 
with system (II.4) we can see that the variable P, has been 
eliminated, but only in order to be replaced by fwo new va- 
riables: 'W and x. This means that, if we want to keep definite 
solutions for relative prices, we must assume one of the 
variables as given, or alternatively we must introduce a new 
relation. 
“10] Pasinetti - pag. 24
	        
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