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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28
by making use of a few definitions. We know from (II.11)
that each production of capital goods (X,) is composed of two
. I
parts: replacement of worn-out capacity ( T %inXn) and new
investment (a;,X,). Denoting these two parts respectively
by X,, and X,,, so that
(111.3)
Xe =X", (6) + Xx, (2) ,
we have
(111.4) x, 0= 2K, @], i=1, 2, .... (n-1).
By substituting now (III.4) into (III.2), we obtain
voy
(IIL. 5) Xp) =o [XO], i=1,2, ... (n-1).
which amounts to expressing the capacity equilibrium condi-
tions in the form of equilibrium relations between the produc-
tion of capital goods in each period of time and the rate of
change in that period of the corresponding consumption goods.
Using the (II.11) and (III.1), the (III.5) become
d :
ay; X,(0)e8 = — [ain X,(0)e#] , i=1,2,....(n-1),
D]
Ann X,(0)e8' = g a,,X,(0)e8
and finally
(111.6)
Ain = E Gin »
ey 2) vee (m=T1).
“10] Pasinetti - pag. 38