By Malinvaud E & Bacharach M
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Additional info for Activity Analysis in the Theory of Growth and Planning: Proceedings of a Conference held by the International Economic Association
Under the assumptions of Section II, there exists a positive highest proportional growth rate IL* inherent in the technology, attainable by at least one von Neumann process. This process is unique whenever the technology is strictly convex. We shall end this section with an example that shows up the possible artificiality of the search for a maximal proportional growth activity. In the economy of Table II based on just two processes, the highest proportional growth rate IL* = 100 can be attained only in the point z* =z< 2 l* =(1, 100, 0), by having no human population at all, turning the world over to the rabbits.
13. Feasibility considerations are introduced by insisting in addition that all points (xt, yt) belong to the segmentS. If, as in Fig. *), then the only feasible sequence of zero-profit activities consists of a repetition of the von Neumann 36 Koopmans - Economic Growth at a Maximal Rate activity z*. If, as suggested, any maximal growth path of sufficient length is close to a value-preserving path for most of its length, then (A) (C) FIG. 14. (B) (D) VALUE-PRESERVING FEASIBLE PATHS the turnpike conjecture is valid in this case as well.
Studies on Growth Theory McKenzie, L. W. (1963b). 'Turnpike theorems for a generalized Leontief model', Econometrica, vol. 31, nos. 1-2, January-April1963, pp. 165-80. - - (1963c). 'The turnpike theory of Morishima', Review of Economic Studies, vol. XXX, no. 3, pp. 169-76. - - (1963d). 'Maximal paths in the von Neumann model', mimeographed, September 1963, 32 pp. Morishima, N. (1961). 'Prices and the turnpike, II. Proof of a turnpike theorem: the "no joint production case"', Review of Economic Studies, vol.
Activity Analysis in the Theory of Growth and Planning: Proceedings of a Conference held by the International Economic Association by Malinvaud E & Bacharach M