598 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
ABSTRACT 
A general view is given of the results of my work on Capital 
theory from 1943, date of publication of my Treatise of Pure 
Economic Theory, until 1963. 
The first part presents a general formulation of Capital 
theory, the second a model illustrating the general theory, the 
third confronts the model with the empirical data, and the fourth 
presents different applications. In appendix. the model is 
studied for a very general case. 
The different relations given in Part I between quantities 
which are not real quantities express simple accounting identi- 
ties valid for any economy. Thus they have a very large range 
of applicability. The relations between real quantities derive 
simply from the hypothesis that there exists, over a wide range, 
a valid index Rg of real consumed national income evaluated 
at primary factor cost (services of labor and of natural resour- 
ces) when the process considered is optimal in the Paretian 
sense. From this hypothesis it follows that 
ôR _k 2yèY 
R  IyY 
where Y represents the primary inputs, y their prices and % the 
coefficient of homogeneity of the production function. The 
different relations in real terms of this paper are derived from 
this hypothesis ($ 110) 
11] Allais - pag. 2