
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 nonproductible 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 longrun equilibrium of inputoutput 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