1976-05-08 Notes on “Activity Analysis in the Theory of Growth and Planning” Ed E. Malinvaud and M.O.L. Bacharachi

1976-05-08_Activity_Analysis_-Malinvaud_Bacharachi.pdf

7pp (25 numbered paragraphs with some annotations)

Needs OCR, Needs transcribe, Has refs

Annotation says sent to “Enrico” 1980-09-08.

Annotation p5 para 9 confirms:

YES Done. Shifts occur as capital accumulates and wages rise – to more productive and higher organic composition techniques. (Previously uneconomic because labor cheap and rate of profit high).

 

9. Could one approximate an improving technology by a fixed set of linear ones so that with small stocks of capital goods only some (expensive) technologies would be used while as amounts available increased, would shift to others. because of convex cone assumptions. Not even if some other inputs left slack? eg Labor cheap until demand increased then more capital intensive techniques start? Use extra goods. Anyway, would not get turnpike theorem, since turnpike would start after all the initial technologies had been superceded. (ie never)

Met Enrico (Pettazzoni?) at Australian Political Economy Movement conference. So that must have been in 1980. Presumably Unemployment and Revolution parts 1 to 6 was for following year 1981 (completed just in time for APEM). So annotation and changes show had done tests with linear programming packages by September 1980well before putting footnotes in part 7 the subsequent year.

See Notes on Economic Models, Heesterman, Bliss and Burmeister in Capital Theory

Plenty to follow up from these notes!

Note Activity Analysis from 1950s combined fixed capital (and “land” as well as labor “resources”) with input-output. Goes back to Kantorovich and Stalin Prize.

 

 

 

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