Accession Number : AD0622793

Title :   THE NONSUBSTITUTION AND NONSWITCHING THEOREMS IN A MODEL WITH FIXED CAPITAL.

Descriptive Note : Technical rept.,

Corporate Author : STANFORD UNIV CALIF INST FOR MATHEMATICAL STUDIES IN THE SOCIAL SCIENCES

Personal Author(s) : Sheshinski,Eytan ; Burmeister,Edwin

Report Date : 20 AUG 1965

Pagination or Media Count : 26

Abstract : Let a competitive economy produce commodities of varying durabilities, such that (a) production processes exhibit constant returns to scale; (b) there is one exogenous non-productible factor; (c) there are alternative techniques to produce each good; (d) it is possible to define conversion coefficients for old durable goods in terms of new goods of the same kind. Theorem: Let (A)-(d) hold. Then I: A long-run equilibrium of input-output coefficients and of prices in terms of wage units is uniquely determined for any preassigned value of the rate of interest. II: It is impossible to have identical techniques at different interest rates. This theorem generalizes Samuelson's static and dynamic nonsubstitution theorem. (Author)

Descriptors :   (*MODEL THEORY, ECONOMICS), (*ECONOMICS, MODEL THEORY), (*INDUSTRIAL PRODUCTION, MODEL THEORY), MATHEMATICAL MODELS, MANAGEMENT PLANNING AND CONTROL

Distribution Statement : APPROVED FOR PUBLIC RELEASE