Chapter

Walras‐Type Model of Match‐Box Size

Michio Morishima

in Theory of Economic Growth

Published in print December 1969 | ISBN: 9780198281641
Published online November 2003 | e-ISBN: 9780191596667 | DOI: http://dx.doi.org/10.1093/0198281641.003.0001
 Walras‐Type Model of Match‐Box Size

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Introduces multi‐sectoral growth analysis. Mainly devoted to examining a Walrasian general equilibrium model of capital formation on the smallest possible scale. It is assumed that the economy concerned consists of many firms that are classified into two industries: the consumption‐good industry and the capital‐good industry. It is also assumed (as Walras and Leontief assumed) that there is no possibility of joint production: the consumption‐good industry only produces the consumption goods and the capital‐good industry only the capital goods (later in the book this assumption is shown to be undesirable). The remaining parts of the chapter give further mathematical treatment of the existence of short‐run equilibrium, its uniqueness, its Pareto optimality, and the investment function implied—a neoclassical growth.

Keywords: economic growth; general equilibrium models; investment; multisectoral growth analysis; neoclassical economics; Pareto optimality; short‐run equilibrium; L. Walras; Walrasian model of capital formation

Chapter.  9123 words. 

Subjects: Economic Development and Growth

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