772 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

and the rate of interest is a constant, 7’

(210-1)

W(t) - p(t) =7

Hypothesis (b): Constant Production Elasticities

211. Af anv moment t, the elasticities B(0) of real consumed

income with respect to primary inputs r:d0 can be considered
as being constant over a wide range and independent of the
moment t considered.

As we have

(211-0)

8(0)- ZR
R.

we see that, on this hypothesis, real consumed income Ro(?) can
be represented bv the function

(211-1) LR,(#)=La(t)+/"8(0)LF da

(') These assumptions hold in the case where the process considered
respects hypothesis (c) in my article in « Econometrica » (ALLAIS, 1962 A)
Le. hypotheses 1-7 of the second version of my paper for the Cambridge
Conference (ALLAIS, 1963) Some Analytical and Practical Aspects of the
Theory of Capital.
(3) The operator I. represents the natural logarithm.

11] Allais - pag. 76