b40 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
CHAPTER V 
A GENERAL MULTI-SECTOR DYNAMIC MODEL 
1. The model 
We are by now in a position to expound a very general 
multi-sector dynamic model. After the foregoing analysis, 
the exposition need not be long and we may proceed in a very 
schematic way. The hypotheses which are made will be listed 
here under two headings, referring to initial conditions and 
to movements throuech time. 
A. Iwitial conditions. — At the time when our analysis 
begins, which we may denote as time zero, the system is in 
equilibrium, i.e. there is full employment and full utilization 
of existing productive capacity. The system is defined by: 
a) a series of (n —- 1) stocks of capital: 
K. (0). K,(0). ... K, (0) : 
which are the result of past productive activity. For simplicity, 
the assumption will be kept that capital goods require no capital 
to be produced. Since the system is in equilibrium, the stocks 
of productive capacity are exactly of the size required by 
demand: 
‘10] Pasinetti - pag. 70