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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 [relation
 (251-17)7

K(/) =o

and for E=1

K{() z

ec ,P
de

‘
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111 Allais - pag. 188