
Accession Number : AD0618404
Title : AN INPUTOUTPUT SYSTEM INVOLVING NONTRANSFERABLE GOODS.
Descriptive Note : Technical rept.,
Corporate Author : STANFORD UNIV CALIF INST FOR MATHEMATICAL STUDIES IN THE SOCIAL SCIENCES
Personal Author(s) : Morishima,Michio ; Murata,Yasuo
Report Date : 30 JUN 1965
Pagination or Media Count : 2
Abstract : The most important characteristics of capital goods are durability and nontransferability. When time goes on, the number of periods during which a capital good can survive decreases, and it becomes less productive. The other problem relates to the fact that no capital good can be transferred to another industry once it has been installed in some industry. This paper reexamines the dynamic inputoutput model of Leontief's type from this point of view, and shows how it has to be altered, on the assumptions that there is no technical change and that prices are so flexible as to establish the longrun equilibrium price conditions instantaneously. The authors begin by proving the dynamic substitution theorem, assuming the existence of differentiable general neoclassical production functions, taking vintages of capital goods into explicit account. Then the existence of the golden equilibrium of the model is discussed. (Author)
Descriptors : (*INDUSTRIAL PRODUCTION, MATHEMATICAL MODELS), (*MANAGEMENT PLANNING AND CONTROL, INDUSTRIAL PRODUCTION), REPLACEMENT THEORY, ECONOMICS, MATRICES(MATHEMATICS)
Distribution Statement : APPROVED FOR PUBLIC RELEASE