PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
The Interest Rate and the Rate of Growth 
118. I have shown elsewhere that subject to very general 
conditions a dynamic growth process is characterised asympto- 
tically by the relation 
(118-1) 
i) =o(t) +1 
where ¢ is the rate of interest characterising the stationary 
process which can be made correspond to the process under 
study (1). 
I'he Significance of the Preceding Relations 
119. All the foregoing relations which do not incorporate 
veal quantities basically express simple accounting identities. 
Primary inputs correspond to the accounting imputations which 
are made. 
The relations between the real quantities are simply derived 
from the assumption of the existence of a satisfactory index 
of real national income consumed (calculated at factor cost), 
when the process considered is optimal in the Paretian sense. 
When an optimal allocation of resources (?) is realised, the 
primary inputs and their marginal equalities take on physical 
significance (3). 
(') ALLats (1063), Quelques aspects analytiques et appliqués de la théo- 
rie du capital (Some Analytical and Practical Aspects of the Theory of 
Capital). 
(?) In French « Maximation du rendement social ». 
() See ArILAIS (1963) Cambridge Paper: Some Analytical and Applied 
Aspects of the Theory of Cadital. Appendix | 
11] Allais - pag. 50