SEMAINE D ETUDE SUR LE ROLE DE L ANALYSE ECONOMETRIOUE ETC. 
641 
pears in system (II.13) will be taken as a constant. This does 
not mean that the rate of profit is an exogenous magnitude. It 
only means that it does not depend on the structure of the 
sconomic system, as represented by (II.g) and (II.13), and 
must be explained with a separate economic theory. Now, 
since I have had the opportunity of dealing with such a theory 
already in an independent publication of mine (Rate of Profit 
and Income Distribution in relation to the Rate of Economic 
Growth in « The Review of Economic Studies », October 1962), 
[ shall here simply refer the reader to that publication (*). The 
results of that analysis which are relevant for our present pur- 
poses are that in an economic system where the over-all rate 
of capital accumulation remains roughly steady over time, the 
rate of profit is bound to remain steady as well. 
A further point is that the assumptions of section 1 do not 
yet provide us with the dynamics of all coefficients that appear 
‘n systems (II.g) and (II.13). The movements through time 
of one series of coefficients — the demand coefficients for new 
nvestments — have not been specified. This series of structural 
coefficients is the only one that affects the stocks of the system 
(i.e. productive capacity in each sector). It cannot therefore 
oe taken as fixed from outside the system. These coefficients 
must be such as to be compatible with the process of growth 
and will come out themselves to be determined as a part of the 
equilibrium conditions 
3} To those readers who still find it difficult to follow the logic of the 
long-run-equilibrium growth models I would suggest a device. We have 
normally been used to think in terms of a free market economy and then 
‘0 extend the results to the case of a centrally planned economy. Here, 
it turns out ot be much more helpful to reverse the procedure and to 
think first in terms of a centrally planned economy. For, in this case, the 
relationship (an equilibrium relationship) between the long-run rate of profit 
and the natural rate of growth emerges immediately. The corresponding 
relationship for a free market economv will then appear much easier to 
grasp 
10] Pasinetti - pag. 77