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 variables:
 '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