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

SEMAINE D'ÉTUDE SUR LE ROLE DE L ANALYSE ECONOMETRIQUE ETC. 
655 
5. The dynamic movements of physical quantities and of rela- 
five brices 
When conditions (V.8), (V.12) are satisfied, each of the 
‘wo linear and homogeneous systems of equations representing 
the flows of the economy — the (Il.g) and (II.13) — yields 
solutions for all its unknowns but one, which can be arbitrarily 
fixed. But since, under our present set of hypotheses listed 
in section 1, all coefficients and unknowns are dated, the solu- 
‘ions no longer take the form of single values but that of mo- 
vements through time. It is evidently one of these movements 
which, in each of the two systems, can be arbitrarily fixed. In 
the case of system (II.g) there is already one of the X’s — na- 
mely X,: population — whose movement has been accepted as 
siven from outside economic analysis. On the other hand, in 
the case of system (II.13), no one of the prices is given so 
that the structural dynamics of the system only determines the 
movements of relative prices. As a matter of convenience, we 
may take the wage rate as given through time ( W), so that the 
dynamic movements of physical quantities and of relative prices 
emerge as follows: 
QE} 
V.13) 
& 
V.14) 
7 
3 
=Bet .. 
LOA 
ex 
. x(t, 
10] Pasinetti - pag. 85
	        
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