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

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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
B. — PROCESS OF MAXIMUM GROWTH OF PRODUC- 
TION PER UNIT OF PRIMARY INCOME FOR GIVEN 
TECHNICAL KNOWLEDGE 
Decrease in Real Consumed Income due to Growth in Primary 
Income 
420. We have seen [relation (233-2)] that in the case of the 
general model we have 
(420-1) 
_ -kO,p 
R_=K(t) e 
where Rom is the maximum value of the real national consumed 
income Re (1), K(#) is a certaih function of # independent of p, 
is the coefficient of homogeneity, and © represents the average 
(!) § 228 and 233 above. For a constant value of p we have 
Roll 
I 
where Ra represents the national primary income ($ 110), œ(t) the effect 
of technical progress (§ 211), k the homogeneity coefficient ($ 211) and k’ 
has the value indicated in § 228. For the exponential model we have [rela- 
tion (251-17)7 
K(/) =o 
and for E=1 
K{() z 
ec ,P 
de 
‘ 
7 
111 Allais - pag. 188
	        
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