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The Balanced Growth Frontier

  • A. R. G. Heesterman
Chapter
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Part of the International Studies in Economics and Econometrics book series (ISEE, volume 3)

Abstract

Suppose the time path of non-produced goods satisfies
$$c{a_t} = \left({1 + \lambda} \right)c{a_{t - 1}}$$
(4.1.1)
for all t, e.g. a proportional expansion of the supplies of all non-produced goods. Here λ will be a fairly small positive1 number, say λ =0.05 for 5% growth. We assume that the model satisfies the requirement of limitation even without considering any limits on produced capital goods, e.g. to any vector car corresponds a limiting frontier of final output vectors, which could not be surpassed due to the limited availability of non-produced goods, even if an infinite stock of all capital goods were available.

Keywords

Capital Stock Capital Good Efficiency Frontier Full Employment Economic Planning 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© D. Reidel Publishing Company, Dordrecht, Holland 1971

Authors and Affiliations

  • A. R. G. Heesterman

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