An Alternative Dynamic System With a Spectrum of Techniques

Michio Morishima

in Equilibrium, Stability and Growth

Published in print March 1963 | ISBN: 9780198281450
Published online November 2003 | e-ISBN: 9780191596650 | DOI:
 An Alternative Dynamic System With a Spectrum of Techniques

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This chapter and the previous one are companion chapters dealing with a mixture of the dynamic Leontief system and the Walrasian model of capital formation. However, they assume different types of production functions––neoclassical production functions in Ch. 3, and discrete ’activities’ or processes in Ch. 4, and the model presented in Ch. 4 is more dynamic in character than that in Ch. 3. Various effects of technological improvements and correlations among prices, wages, and the interest rate are discussed, and it is seen that an efficient balanced growth path exists. Chapter 4, in particular, examines the stability of the balanced growth path as well as that of the long‐run equilibrium prices. The author is also concerned with the possibility of the golden age in the model––a multisectoral version of Robinson's problem.

Keywords: capital formation; credit; equilibrium prices; input–output; interest rates; Leontief models; Leontief's input–output system; neoclassical economics; prices; Robinson's problem; wages; Walrasian model of capital formation

Chapter.  15424 words.  Illustrated.

Subjects: Economic Development and Growth

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