SEMAINE D' ETUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC. 
561 
The first point to make about the (V.17) is that if T and = 
remain constant, the sectoral capital-output ratios exclusively 
depend on technology, both at a certain point of time and in 
their movements through time. As time goes on, each of them 
increases, decreases or remains constant according to whether 
the rate of increase of productivity in the sector considered is 
higher than, lower than, or equal to, the rate of increase of 
productivity in the corresponding capital goods sector. The 
reader will recognize in these three possibilities the cases which 
in dynamic economics (7) are commonly known as the cases of 
labour-saving, capital-saving, and neutral technical progress. 
We can only confirm here that, with reference to the sectoral 
~apital-output ratios, this classification is perfectly justified, be- 
cause the variations can indeed be traced back to a particular 
type of change in technical knowledge. 
4. But let us now consider the aggregate capital-output ratio. 
Again, it becomes convenient to look at its reciprocal (the 
output-capital ratio). By substituting (V.13)-(V.14) into 
I11.15) and by calling » the over-all average rate of growth 
of per-capita demand (i.e. the weighted average of the rates of 
increase of total demand in each single sector), the over-all 
capital-output ratio emerges as 
I i \ 
'V.18) n= tmred j= 
Faip(t-0) a, (1-0) e rime) b 
Sa. (-0) a, -0) e (Fe, 
Now, the most remarkable difference that ¥(¢) exhibits with 
respect to each of the «,(f) is that it depends not only on 
technology, but also on demand. As can be seen by a simple 
(') These definitions are due to R.F. Harrop who foreshadowed them 
already in his review of Joan RoBINSON’s, Essays in the Theory of Employ- 
ment, « The Economic Journal », 1937, pp. 328-9, and finally formulated 
them in Towards a Dvnamic Economics. London, 1048, Pp. 22-24 
ro) Pasinetti - pag. o1