By Malinvaud E & Bacharach M
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Additional resources for Activity Analysis in the Theory of Growth and Planning: Proceedings of a Conference held by the International Economic Association
11. All points of S* are now points of maximal proportional growth, and define as many von Neumann paths, all sustainable by the same price system (PI> p 2 , r) (which need not be unique). The slices Z 6 all contain S*, and shrink down to S* as o tends to zero. Hence, in any maximal growth path now, the number of steps outside a Z 8 which closely hugs S* is limited. ty2 x, FIG. 11. CASE OF MANY VON NEUMANN ACTIVITIES Further complications arise if P and Z intersect in a line segment S not contained in S(t-t*).
Radner, R. 'Prices and the turnpike, III. Paths of economic growth that are optimal with regard only to final states : a turnpike theorem', Review of Economic Studies, vol. XXVIII, no. 2, February 1961, pp. 98-104. Samuelson, P. A. (1951). ' In Koopmans, T. C. ), Activity Analysis of Production and Allocation, Wiley, New York, pp. 142-6. - - (1959). 'A modern treatment of the Ricardian economy : I. The pricing of goods and of labor and land services ', Quarterly Journal of Economics, vol. LXXIII, no.
Similarly, in then-goods case, each boundary-point of Z belongs to an (n- I)-dimensional flat section contained in that boundary. This example suggests that the comparative relevance of the Radner-Nikaido versus the Morishima-McKenzie-Drandakis analysis hinges on the following empirical question: Does the coexistence of several processes make some of these processes more productive than each of them would be if it existed by itself alone? We shall not try to find an answer here. One can indeed think of several factors that give rise to economies external to the processes.