SEMAINE D'ÉTUDE SUR LE ROLE DE L’ ANALYSE ECONOMETRIOUE ETC.

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[t goes without saying that, as a straightforward corollary
of the above results, all aggregate quantities — like gross and
net national income, consumption, saving, investment, capital
— increase in real terms, as time goes on, at the same percentage
 rate of growth (g) of population.

=. Interesting features of the present case of growth

The dynamic features of the system considered here, as
they emerge from the previous sections, are of an extreme simplicity.
 The merits of this simplicity are entirely attributable
to the assumption of a fixed technology and constant returns
to scale, which confers on this case all the elegant properties it
possesses. With an invariant technology and constant returns
to scale, the growth of the system is entirely determined by the
rate of increase of population. This growth does not affect the
position of any single individual: per-capita income remains
constant as time goes on, and economic growth simply means
that the system expands all its sections in the same proportion.
All products grow, with population, at the same percentage
rate, while the structure of the system (its relative composition)
 remains constant as time goes on.
This case of growth is well known, of course, in economic
theory. A clear though rudimentary picture of this case can
already be found in CassEL (°). Recently, LEONTIEF and
VON NEUMANN, although in a different way (*), have based
all their well-known dvnamic elaborations exactlv on this case.

(°) Gustav CasseL, Theoretische Sozialékonomie, Leipzig, 1918, pp. 2
and ff. English translation: The Theory of Social Economy, London, 1921
Jp. 34 and fi.
(®) Both von NEUMANN’s and LEONTIEF’s dynamic models will be discus.
sed in more detail in an appendix to chapter VI.

10) Pasinetti - pag.

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