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

(I1.16) 
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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
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These two new series of solutions are basically similar to 
(IL.11) and (II.14), although they are a little more complicated. 
Each production of capital goods now covers not only replace- 
ment and new investment for consumption goods sectors, but 
also replacement and new investment for capital goods sectors. 
Similarly each of the prices now covers not only the profit 
and depreciation allowance for consumption goods sectors but 
also the profit and depreciation alowance for the corresponding 
capital goods sector. 
Since, in this case, the productive processes of capital re- 
quire as input a part of their own outputs, there is one more 
necessary condition for positive solutions — or rather a series 
of necessary conditions — explicitly brought out by (II.15) - 
(I1.16). Algebraically, the conditions are 
(11.1%) T,.>v., 1=1I, 2, ..., 1 
= 
meaning that the total output from the employment of one 
machine, in the whole course of its life, must be more than 
to] 
Pasinetti - pag. 30
	        
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